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Home My WebLink About0610 . Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fonds for Taxes and Insurance. Subject to applicable 1:?w or to a written waiver by lender, Borrower shall pay to l.ende~ on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, e+ sum {herein "Funds '1 equal to one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium inst:+llments for mortg:+geinsur:+nce, if any, all ~+s reasonably estimated initially and from time to tirr,e by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency !including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insuranm premiums and ground rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying :+nd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the F unds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, :+n annual acn,unting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional sre•urity for the sums secured by this Mortgage. If the amount of the Funds heid by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exc wed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at BolTOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by !.ender, !.ender shall apply, no later than immediately pride to the sale cf the Property or its acquisition by bender, any Funds held by I.ender:+t the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. finless applicable law provides otherwise, all payment. received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in p:+yment of amounts payable to (.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, an(I then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, finf•s and impositions attribut:+ble to the Property which may attain a priority over this Mortgage, and leasehold payments ur gn+und rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when duf•, dirf•c•tly to the payf•e then•+,f. Born,wer shall promptly furnish to lender all notices of amounts doe under this paragraph, and in the event Iorrower shall make payment dirfY•th•, Burrow•c•r shall promptly furnish to i.ender receipts evidencing such payments. ?iomnver shall promptly discharge any lien which has priorih• over this Mortgage; provided, that borrower shall not be required to discharge am• such lien so lung as Borru«•er shall ak~ref• in writing to the payment of theobligation secured by such lien in a manner acceptable to Iw•nder, or shall in go+,(1 f:?ith contest wch lien by, or defend enfun•f•nu•nt of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeitun• of the Pn+p+•rt~ or any p:+rt then•of. 5. Hazard Insurance. Borrower shall kfc•p the impruv~menis now existing or hereafter erc•c•ted on the Property insured against loss by fire, hazards included within the term "extendfd coverage," and such other hazards as Lender may require and in such amounts and forsuch periods as lender may require; provided, that Ixnder shall not rrquin• that the amount of such (Y,veragc exceed that amount of coverage required to pay the sums secured M• this Morlg:+gf•. The insuranm carrier providing the insurance shall hf• chosen by Bom+wer whjert to appn,v:+I by Lender; pnwidal, that such approval shall not br unreasonably w•ithhf•!d. All pn•miums on inwr:+nre p~dicic. shall bf• paid in the manner provulf•(1 under paragraph hereef or, if nut paid in such manner. by B+,rruH•er making payment, when due, directh to the insurance carrier. All insurance policies and renewals thereof shall tx• in form acceptable to Lf•nder and shall include;+ standard mortgage clause in favorof i and in form acceptable to Lender- l.endershall have the• right d. hold the t,ulu•les and renewals thereof, and Burrower shall promptly furnish to +.ender all renewal notices and all nreipts of paid prrmiums. In the event of loss, Burrower shall give prompt notice to the insurance carver E and !.ender. !.ender may make proof of loss if not made pn,mptly b>• Burrower. ~ Unless Lender and Burrower otherw•isf• ague in writing, insurance pr+,ceeds sh:+ll bf• applied to restoration or repair of the Property damaged, provided such restoration ur repair is crunomicaliy feasible and the sfc•urity of this Mortgage is not thereby impaired- If such restoration or repair is not economically feasible or if the se(•urity of this Mortgage would tx• impaired, the insurance proceeds shall beapplied to the sumssecured by this !Mortgage, with thf•excess. if am•, paid to It++rrower. Ifthe I'ruperty is abandoned by Borrower,orif Burrower failsto respond to !.ender within al?days from the datf• nonce is mailed by !.ender d. Borrower that the insurance carrier uKers tosettle a claim for insurance benefits, Lender is authorizf•(l to cullf•c•t and apply the insurance pnK•f•fds at 1.+•nder's option either to restoration or repair of the Property or the sums secured by this Mortg:+ge. t Unless Lender and Borrower otherwise agree in N•riting, any such application of pmcf•tds to principal shall not extend or postpr,ne thedue date of the monthly insti+Ilments referrfd to in paragraphs 1 and' hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by bender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale nr acquisition. 6. Preservation and Maintenance of Property: Le•asehulds: ('onduminums; Planned Unit Developments. Burrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterior.+tion of the Property and shall comply with the provisions of any lease if this !Mortgage is on a leasehold. If this Aortgage is un a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the de(•laratiun ur coven:u)ts crf ;+tingor governing thecondominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent dxuments. If a condominium or planned unit development rider i. executed by liorrv~w•er and recurde(1 together with this Mortgage, the covenants and g~ g agreements of such rider shall be inc~~rpuratfd into and sh:+ll arnend and supplf•rnent thecoven:+nts:+nd agreements of this Mort + eas ifthe nder were a part herc•+,f. PrUteCtlUn of LrrlllCr~!) .r7@l'iirlty. if Bvi:::L•cr faii$'w ""'f.. the r. _•unan+a an~ aora4+m unto root Ainwl in thlR Mort QAQP; nr rf ATV z3 action or proceeding is commenced which materially affects Lender's interest in the Property,~including, but not limited to, eminent domain, c_ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendei s option upon notice to Borrower may make such appearances, disburse ouch sums and take such action ae is necessary to protect Lender's interest, ~ including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable [aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ Any amounts disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. L`,~~K J10 s09