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Home My WebLink About1186 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 Tate charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Ta:es and Insurance. SubjeM to applicable law or to a written waiver by lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "F unds")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- welfth ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, ifany, all as reasonably estimated initially and from time to time by lender nn 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 ii Lender ie such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and 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 Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting 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 security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly in>tallments of F unds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall excred the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bormwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents se 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 soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. if under ~AOr,Eph ]R horaOf thE• Pmtwrty is sold or the Property is otherwise acquired by Lender. Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition by 1.ender, any F unds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by bender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then tc+ interest and principal on any Future Advances. -t. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which sit.3in a priority ovor this Mortq=+ge, and lea+seh~~l+l p:+ymE•ntc nr i~mund r+•nts, if:+ny. in the manner provideEl under paragraph 2 hereof or, if n:,t paid in such manner, by Borrower making payment, when due, dirE•E•tl~• to the payee thereoL Born,wershall promptly furnish to Lender ail notices of amounts due under this par:+gr.+ph, and in the event Bormwer shall make pa~•ment directly. Bormwer shall promptly furnish to l .Ender receipts evidencrng such payments. I~~rn,wer shall promptly discharge any lien which has priority over this Mortgage: provided, that B~ ~m,wer shall not be required to discharge any such lien su lung as Rorn,wer shall agrE•E• in writing to the payment of theubligation secured by such lien in a manner acceptable to Iw•nder, ur shall in g«,d faith contE~t such lien hy, ur defend E•nfun•Ement of such lien in. legal pre,rEtidings which operate to prevent the Enforcement of the lien or forfeiturE of thE• Prut,c•rh• or any part thenc,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing ur hereafter erectE•d un the Property insured against loss by firE, hazards included within the term "extendE•d coverage," :rod such other hazards as Ixnder may require and in such amounts and forsuch pc•riuds as Ixnder may require: providEd, that IxndE•r shall not rE•yuire that the amount of such rnverage excE•E•d that amount of coverage r~tituired to pay the sums secured by this Mortgage. 'i'he insurance carver prodding thr insurancE shall t,E• chosEn h\' B~~rn~wEr subjEr•t to approval by I.E•ndEr, pmvidc•d, that such approval shall not be unreasonablt• withhEld. All premiums on insur.+ncE policies shall t,E• paid in thE• mannEr pr~n•idEV1 undEr p:+ragraph Y herE~,f or, if nit paid in such manner, by li::rrowrr making pa>•rnent. ~~hen duE, dirECtl>• to the insLr.+nre carrier All insurance policies and renewals therec,f shall tx• in form acceptablE to i.E•nder and shall include a standard mortgagedause in favorof j and in form acceptable to Lender. Lendershall havE the right to hold the policies and renewals therec,f, and Kurrower shall promptly furnish to { :.:'nder all renewal notices and all receipts of paid premiums. In the Event of loss, Korn,wer shall give prompt notice t0 the insurance carrier and Lender. (.ender may make proof of loss if not made prompth• h.• Borrower. Unless Lender and &,rrower otherwise agree in writing, insuranc-c procE•Eds shall be applied to rE•stor+tion or repair of the Property damaged, provided such resG,ration or repair rs E•c•unomically feasible and the ,Erurih• of this Mortgage is not thereby impaired. If such rEStoration or repair is not economically feasiblE ur if the security of this ~turtgage would F?e impaired, the insurance proceeds shall beapplied t+: the sums secured by this MortKage. with the excESS, if anc, paid to Born,wer. If the Property is ahandonEd by Borrower, or if Borrower fails to I respond to Lender within :3(1 days from the dale noticE is maihd by I,c•nder to Rorruw•er that the insurance carver offers to settle a claim for g insurance benefits, Fender is authorizEd to cullc•c•t and apply the insurance procE•E•ds at Lender's option either to restoration ur repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agrE•E• in w•nting, any such application of proceedsto principal shall not extend or postpone thedue I date of the monthly installments referred to in paragraphs 1 and'2 herec,f or change the amount of such insG•tllments. If under paragraph 18 hereof the Property is acquired by bender, all right, title and interest of Burrower in and to am• insurance policies and in and to the proceeds t thereof resulting from damage tc, Property prior to the salE or acquasition shall pass to [.ender to the extent of the sums secured by this 11„rtgage immediately prior to such sale or acquisition. ti. t'reaervation and lrlalntenance of Ijroperty;l.easl hold.; (~undum+nums; P Itl11++eti IJ tit I3rvrivpriirritH. nia7J"vYrr 5~inii iirrp the Property in good repair and shall not commit wastE• or pt•rmit impairment or deterioration of the Property and shall comply with the pr:n•isions of any lease if this Mortgage is on leasrhuld. If this MurtgagE is un a unit in a condominium or a planned unit development, Burrower shall perform all of l;<rrn,w•er's obligations under the dEV•laratiun or covenants crEatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or plannEd unit development, and constituent documents. If a undominium or planned unit development rider rs exE•cutEd by Itorn,wer and recorded together with this Mortgage, the covenants and .:y;reements of such rider shall ?,E incorporatE•cl into and shall amEnd :rod supplrmEnt thE000enants and agreements of this;llortgageasifthe ~ nder were a part hereof. 7. Protection of Lender's Security. If Borrower fails tp perform the rnvenants and agreements contained in this Mortgage, or if any a:.~ion or proceeding is commenced which materially affects Lender a interest in the Property, including, but not limited to, eminent domain, ? rnsolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender a 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, Burrower shall pay the premiums required to maintain such insurance in effect-until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant G, this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. IJnlesa Borrower and (.ender agree tv other terms o[ payment, such amounts shall be payable upon notice from Lender to Bormwer requesting payment thereof, and shall bear interest from tl?e date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of inlrrest at such rate would be rnntrary 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. G ~K 318 Y~Gf X181