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Home My WebLink About0002 Borrower and Lender covenant and agree as follows: I. 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. surds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Ixnderon the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds"? equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents un the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, x11 as reasonably estimated initially and from time to time by !.ender on the basis of assessments and bills and reetsunable estimates thereof. The Ftirnds 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 /axes, asses.4menta, 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 !.ender 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, Ixnder shall not be required to pay Borrower any interest or earnings on the Flrnds. 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 b the Funds was made. The F unds 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 installments of Funds payable prior to the due dates ottaxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borroweron monthly installments of Fonda. If the amount of the fiunda held by Lender shall not 6e sufficient to pay faxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Ixnder any amount necessary to make up the de[iciency 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, Lender shall promptly refund to Borrower any funds held by !xnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquit<•d by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Ixnder, any Funds held by Lender at the time of application as aeteei>rt agains/the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides othena•ise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by (.ender first in payment of amounts payable to !.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, asse•ssmrnts and othen•harKes, fines and impositions attributable to the Property which may attain a priorityoverthisMortgag;e, and leasehold payments or Kroundrents, ifany, in themannerprovided underparagraph'lhen~ofor, if not paid in such manner, by Borrower makinK payment, when due, directly to the payer thereof Borrowershall promptly furnish to Ixnder all notices of amounts due under this par.+Kraph, and in the event Burrower shall make payment dircc•tly• Kurrower sh:+ll promptly furnish to !xnder receipts evidencing such payments. Burrower shall promptly discharge any tiro which has priority over this .~1ortKaKe; provided, that Borrower shall not be required to discharge any such lien su lank as liun•owrr shall aKre•e• in writing; to the payment of theubligation secured by such lien in a manner acceptable to lxnde•r, ur shall in K«,cI faith contest such lien hy, or defend enfurcrmrnt of such lien in. Irgat proceedings which operate to prevent the enforcement of the hen ur fort+•itur+• of the, !'rupe•rty ur :+ny part thNn„f Hazard Insurance. Born,a•er shall keep the impruvc•ments now existing or hereafter ere>c•ird un the I'ruperh insured aKainst hss by fire, hazards included within the term "extended c-rn•e•rage." and such other hazards us Lender may reyuire and in such amuunts:rnd for such periods as Ixnder may re>ctuire; pn,vided, that 1>e•nder shall nut myuin• that the anu,unt Y,f such cc»erage rxcetd that amount of coverage required to pay the sums secured M• this Mortgage. The insuranee earrie•r pn,~•idinK the inwr,+nce sh:dl br chu.rn by Born~wrr subject b~ appnn al by Lender, pn,vidrd• that such approval .hall not be unreasonably withheld. All prrmlum~ or+ IINUl:+I+/'e• p„hcirs sh:+ll he• paid in the m:u+ner pn,ciderl under paragrph herer,f or, if not paid in such manner, by Ftr,rtow•rr m:+kinK gi:+yrnrnt, when due. directiv to the insur:+m•r• carrier. All insurance policies and renewals thereof shall t,r in form acerptahlr to Ixnderand shat! include a standard mortgagedause in favorof and in form acceptable to 1.ender. lender shall h:n•e the right to hold the pulic•ies and renewals thrrr+,f• and Borrower shall promptly furnish to t Ixnder all renewal notices and all receipts of paid premiums. In the rveut of lose:, Burrower shall Kive prompt notice to the insurance carrier { and Ixnder. bender may make pr«,f of loss if not made promptly by Born,wrr. , i Unless Ixnder and Burrower otherwise, ag,~re•e• in writinK, insurance proceeds shall tx• applied to restoration or repair of the Property damaged, provided such mstoration or repair is economicalh• feasible and thc• security of this MurtgaKe is not thereby impaired. If such l restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance prrx•eedsshall beapplied to the sums secured by this Morig;age, with the excess, if any, paid to Borrower. If the Pn,prrty is abandoned by Korrox•er, or if Borrower fails to re:cpond to Ixnder within aA days from the date Holier is mailed ht• l xnder to Borrower that the insurance carrier offers to settle a claim for Insurance benefits, Lender is authorized to culle•ct and apph• the insurance pn,cerds at Ixnder's option Tither to restoration or repair of the Property or the sums secured by this Mortgage. [~'nlesa [xnder and Borrower otherwise aKrcr in w•ntinK. any such application of pn,ce>eds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 :+nd'? hrrer,f ur c•hange the amount of such installments. If under paragraph 18 hereof the Property is acquired by !.ender, all right, title and interest of Kurrow•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to I'mperty prior d, the salt err ac•qursition shall pass Gr Lender h, the extent of the sums secured by this i ~lortgage immediately prior to such sate or acquisition. 6. Preservation and MaintenanceotProper?y: l.easeholdti;('onduminums; Planned ['nit Developments. Borrower shallkee~ the Property in K«,d repair and shall not commit wa5te• ur prnnit impairment ur deterioration of the Property and shall comply a~th the provisions of any lease if this MortKaKe is un a Icaseho!d. If this Murtg;aKe is on a unit in a nmdominium or a planned unit development, Borrower shall perform al! of Borrower's ohlig;atiuns under the dre•laration r,r covenants crratinKor KovermnK the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is rxwvted by Iir,rrower :Ind recorded together with this Mortgage, the covenantsrand agreements of such rider shall t,e• incorpor,rtrd into :+nd shat! amend anti supplement the cnrrRant_ti and agree>mentsuf this MortgaKeasifthe rider were a part hereof. • 7. Protection of Lender's Security. If Burrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Fender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder at Ixnder'e option,upon notice to Borrower may make such appearances, disburse such sums and take such action as 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 Ixnder required mortgage insurance as a condition of making the loan secured by this MortKaKe, Borrower shall pay the premiums required to maintain such insurance in effect until such time as Lhe requirement for Auch insurance terminates in accordance with Borrower's and [xnder's written agreement or applicahle Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persaant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this MortKaKe. lJnlesa Borrower and Ixnder agtree tr, other terms of payment, such amounts shall be payable upon notice from [xnder 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 r,f 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. U;r~r',~J ~a~E 2