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Home My WebLink About0509 ~ Borrower and l.ender covenant and agree as [ollows: 1. Peyment of Princlpal e~d Intereet. Borrower ehall promptly pay when due the p~incipal of and interest un the indebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any ~ture Advancea secured by thie Mortgage. ' 2. Flu~de for Taxes and Inaurance. Subject to applicabie law or to a written waiver by I.ender, I3orrower shall pay to I.ender un the dny mot?thly inetaltmente of principal and interest are payable under the Note, until the Note ia paid in full, a sum (herein "F unde") equal w one twe1M of the yearly taxea and asseasmente which may attain priority over this Mortgege, and ground renta on /he Properly, if any. plus onP twelfth of yearly premium installmente for hazard insurance, plua onetwelfth ofyearly premium instullmenta for mortgage inaurance, if any. all as reasonably estimated initially and from time to time by l.ender o~ the bania of assesamenta and bills und reasunAble estimates thereof. 'l~e FLnds shaU be held in an institution the depoaite or accounts of which are ineured or guaranteed by a Federal o~ State agency (including Lender if Lende~ ie such an inatitution). I.ender ahall apply the Funda to pay said taxea, asaeasmenta, inaurunce premiuma and . ground rente. I.ender may not charge for eo holding and applying the Funda, analyzing eaid account, or verifying and wmpiling said aseesaments and bills, nnless Lender paya Borrower intereet on the ~unds and applicable law permits Gender to make auch a charge. Borrower and Lender may agree in writing at the time of e:ecution o[ thie Mortgage that intereat on the Funda shall be paid to Borrower, and unleas such agrcement ie made or applicable law requiree auch intereat to be paid, I.ender shall no! be required to pay Borrower any internet or earninge on the ~nde. Lender shall give to Borrower, without charge, an annusl accaunting of the Funda showing credits and debits to the Funds and the purpoee for which each debit to the Funda was m.?dr. The Funde are pledged as additional eecurity for the euma secured by thie Mortgage. If the amount of the Ftinds held by Lender, together witt. the future monthly installments of Funds payable prior to the due datei+ottaxes, aesesaments, insurance premiuma and ground rente, ahall exczed the amount required to pay said ta:ea, aesessments, insumnce prnmiuma and ground rents as they fall due. euch e:cesa sha11 be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of PY~nda. If the amount of the Funde held by Lender shall not be aufficient to pay taxes, assessmenta, insurance premiums and ground rents as they [all due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of all euma eecured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by I.ender_ If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by l.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or ita aaqaiaition by Lender, any ~nds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Paymente. Unleas applicable law provides otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender first in payment of amounte payt+ble to Lender by Eiorrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. ~ 4. Charges; Liene. Borrowershall pay all taxes, asses~ments and othercharges, fines and impoaitions attributable tu the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Rorrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the e~ent Borrower shall make payment directiy, Borrower shall promptly [urnish to (.ender receipts evidencing such payments. E3orrower shall promptly discharge any lien which has priority over this Mortgage: pmvided, that Borrower shall not berequired todischarge any such lien so long as Borrowershall agreein writing to the paymentof the obligation secured by such lien in a manner acceptable to Lender, or ahal) in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ot any part thereof. 5. Hazard Insurance. Borrower shall keep the improvementa now exieting or hemafter erected on the Property insured against loss by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may requim and in such amuunts and for such perioda ~s Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ia the greater. . The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, pm~•ided, that such appro~•al shall not be unreasonably withheld. All premiums on insurance policies shail be paid in the manner provided under paraQraph '2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage ciause in favor ot li and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, and E3orrower shall promptly furnish to ~ iender ali renewal no6ces and all receipta of paid prnmiums. In the event of loss, Borruwer shaU give prompt notice to the insurance carrier ; and I.ender. I.ender may make proof of loss if not made promptly by Borrower_ ~ Unleae Lender and Botrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property t damaged, provided such restoration or repair is economically feasible and the aecurity of thie Mortgage is not thereby impaired. If such ~ restoration or repair ie not economically feasible or if the security of thie Mortgage would be impaired, the inaurance proceeda shall be applied to the eums eecured by this Mortgage, with the excess, if any, paid to Borrower. If the Propedy ie abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier of~ers to settle a claim for ; inaurance benefits, Lender is authorized to collect and apply the inaurance proceeds at Lender's option either to restoration or rnpair of the ~ Property or the sums aecured by thiB Mortgage. Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone the due ~ date of the monthly instxllments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta_ If under paragraph IS . ~ hereof the Property ie acqnired by Lender. all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds thereof reeulting from damage to Property prior to the sale or aoquisition shall pasa to l,ender to the extent of the aums secured by this ~ Mortgage immediately prior to auch sale or aoquisition. 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not cammit waste or petmit impairment or deterioration of the Property and ahall comply with the proviaions of any leaee if this Mortgage ia on a leasehold_ If this Mort{tage ia on a unit in a oondominium or s planned unit development, Borrower ahall perform all of Borrowei s obligations under the declaration or covenants creatingor goveming the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent docutnents. If a ~ condominium or planned unit development rider ie executed by Bonower and recorded together with thia Mortgage, the aovenanta and s; agreementa of auch rider shall be incorporated into and ahall amend and suppiement the covenants and agreements of this 111ortgage as i[the ~ rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Borrower faila to perform the oovenante and agreements contained in thie Mortgage, or if eny _ action or ptoceeding ie commenced which materially aftecte Lender'e interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower .may make euch appearances, diaburse auch aums and ta1~e ench action aa ie nec~ssary to protect Lender's interest, ; including, bnt not limited to, diabureement of reaeonable attomey'a feea and entry upon the Property to make repaire. If Lender required mottgage ineurance as a condition of making the loan aecured by thie Mortgage, Borrower ehall pay the premiuma reqaired to maintain ~ euch inenrance in effect until such time ae the requirement for euch inaurance terminatea in accordance with Borrower'e and Lender a 4° written egreement or applicable I.aw. Borrower shall p,~y the amount of all mortgage inaurance premiuma in the manner provided under r paragraph 2 hereof. Any amounta diebureed by Lender pereuant to thia paragraph 7. with intereet thereon, shall become additional indebtedneee of Iiorrower eecured by this Mortgage. Unleee Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon ;y notice from Lender to Borrower requeeting payment thereof, and ehall bear intereat from the date of diebareement at the rate payable from time to tjme on outetanding principal under the Note unlese payment of intereat at such rate would be oontrary to applicable law, in which event such amounte ahall bear interest at the highest rate permiasible under applicable law. Nothing contained in thie paragraph 7, ahall ~3 requ've Lender to incur any expenee or take any action hereunder. ~ ~ - ~:,i, r 310 : ri: G ° 509 ~ ~ ~ ~ _