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Home My WebLink About0608 Borrower and [.ender covenant and agree ae follows: 1. Payment o! 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 Nole, and the princ•ip:+l of t+nd interest utt any Future Advances secured by this Mortgage. 2. lhtitnds for Ta:es and Insurance. Subject to applicable l:+w or to a written waiver by Lender, Borrower shall pay to Ixnder on the day monthly installments of principal and interest are payable under the Note, until the Nute is paid in full, a sum (herein "Funds"? equal to one t,veltth otthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazard insuranrn, plus one-tvrclfth ofyearly premium lost:+llments fur mortgage insurance, ifany, all as reasonably estimated initially and from time to tin,eby Lender un the basis of assessments and bills and reasonable estimates thereof. The Etitnda shall be held in an institution the deposits or accounts of which are insured or gu:+runteed by a Federal or State agency tincluding Lender it Lender is such an institution). Lender shall apply the F unds to pay said tt+xes, 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 Lenderpays Borrower interest on the Fonda and applicable law permits Lender to make such c? charge. Borrower and Lender may agree in writing at the time of execution c?f 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 p:+id, Lender shall not be reyuired to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an annual am,unting of the F unds 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 Fonda held by Lender, together with the future monthly installments of Funds payable prior to the duedatea of taxes, assessments, insurance premiums and ground rents, shall exc ~eEl the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited W Borrower on monthly installments of Funds. If the amount of the Funds held by !.ender shall nut be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Burrower shall pay W [.ender any amount necessary to make up the deficiency within aodays from the date notice is mailed by !.ender to 13orruwcr requesting payment Ihereuf. Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Burrower any funds held by !.ender. if under paragraph 18 hereof the Property is sold or the 1'ropcrty~is otherwise acquired by Ixnder. Lender shall apply, nu Later than immediately prior to the sale of the Property or its acquisition by Fender, any Funds held by Ixnderat the time of application as a credit against thesums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides uthcr\\•ise, al! p:+yments received by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in p:+yment of amounts payable to bender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4-Charges; Liens. Borrower shall pay alt tax+•s, assessments and other ch:+rges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leau•huld payments or Kreund n•nts, if;my, in the manner prodded under paragraph `L hereofor, if nut paid in such manner, by Burrower making payment, whin due, dinvth• to the, pace•E• the•n•crf. Burmwershall promptly furnish to Ixnder all notices of amountsdue under this paragrrph, and in the rcent Burrower shall make payment din•c•tly. Born,\eer shall prurnptly furnish to l.k•nder receipts e\•idene•ing such payments. lif:m,\\•er shall promptly discharge am• lien \chich has priorih• ever this Mortgage; provided, that Burrower shall not be reyuired to discharKk• any wch lien se long as Rorn+wer shall aKrc•+• in writinK to the paynu•nt of theuhiigatiun secured by :uch lien in a manner acceptable to Ixnder, or shall in Kofxl f:kith cf arrest such lien hy. urdefe•nd e•nfi+n•e•nu•nt of sw•h lien in, l+•Kal pr+x•eedings K•hrch operate to precool the enienrmc•nt et'thr lien ffr ff+rfriturk• f.f ti,f• I'+..tn rid or .wn part thee(:+f. 5- Hazard Insurance. Burrower shall keep the, impn,cements now existing ur hereafter erer•ted on the Property insured againsUoss by fire, hazards included within the term "extendkd cocer.+Ke."and such other hazards as Lender may nquire• and in such amounts and forsuch pk•rikxls as Ixnder may re•yuire; prucidkd, that 1•c•nder shall not re•yuin• that the amowtt of such etin•er.+Ke exce•fd that amount of coverage n•quired to pay the sums sE•c•ured be this ~lertgage. The insurance carrier pn+cidinK the incur.+nce .hall hr chosen by Knrrower subject to approc:kl h}' Lender, procidkvi: that such appru\•al shall not be unmau+natdy Ecithhelel.:~Il prk•rnimns un inskrrancr pulif•n•~ Thal! l,k• p:kid in the m:uuker j+rucidk•(1 under paragraph 2 hereof or, if nut paid in such manner. be tSt+rreK'er n+:IKInK pa\'Inelll. \\iN•n file flirk•f ~ki~ uff~ ~n.u+.un .a,. All insurance policies and renewals thereof shall tx• in form acceptable to (.k•nder and shall include a standard mertgageclause in favorof and in form acceptable to (.ender. Lender shall h:kcc• the right to hold the, policies and renewals ihen•fkf. and Rum,wershall promptly furnish to c.ender all renewal notices and all rf•c•eipts of paid pn•miums. In the scent f,f loss, Korrewer sh:+ll Kice prompt notice to the insurance carrier and Lender. (.ender may make pn,f+f of loss if nut made promptly by Berrow•e•r. Unletis Lender and Korruwer other•w•isk~ agn•E• in writinK, insurance pn++•k•k•ds shall hk• applied to restoration or repair of the Property damaged, provided such restoration or repair is ecunurnically fi:fsible and the sk•e•urih• of this :1lurtgagf• is not thereby impaired. If such restoration or repair is not ecunomic•ally fe :+sible ur if the sk•c•urit}• of this ;llurtgage would tx• impaired, the insurance pr+xcE•ds shall tke applied to the sums secured by this MortKagr, with the exces, ifak»•, paui to Burrower. If the I'rope•rty is abandonfd by Rorruwer,ur if lierruwer fails to respond to (.ender within :it? days from the dark, notice i.: maih•d by l.k•ndf•r to Kern+wer that the insurance Barrier offers to settle a claim for insurance benefits, Ixnder is authorved to cell<rt :uu1 apph• the insurance pn,f•eeds at Ixnder's option either to restoration ur repair of the Property or the sums secured b\• this ~lurtgaKe•. Unless (.ender and Burrower etherw•ise aKrk•k• in writinK. any such :kpplicatiun of prec•eeds to principal shall not extend or p,stpone thedue date of the monthly installments referred to in paragraphs I and'L'ken•ef er change the amount of such installments. If under paragraph 1K hereof the Property is acquired by Lender, ap right, titk• and inten•st of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acyuksitien shall pass to I,+•nder to the extent of the sums secured b~ this ~lortgagr immediately prior to such sale or acyuisition. 6. Preservation and :Haintenancc•of Property; Let+sehotd+; ('nndvminums; Planned !'nit Developments. liurroK•ersha!! keep the Property in g+xxi repair and shall not commit w:kste er permit impairment f+r detk•rieratiun of the Pmpe•rty and shall comply with the precisions of any lease if this Mortgage is un a leasehold. If this ~IeRK:kge is un a unit in a condominium ur a planned unit development, liorrnw•er shall perform :+II of Borroaer's obligation. under tha dk•f•laration f.r cucenants f•re:ktinKor Ke\•ernmK the condominium or planned unit development, the by-laws and regulations of thk• cundurniniurn or pl:+nn+d unit df•celupment, and k-unstituent documents. If a f-unduminium or planned unit de\•elepment ridk•r is k•xkrutk•fl h\• liorn•\cer :rod n•curdkd together with this Mortgage. the rnvenants and :+Krerments of such ndk•r shall !x• incorporated into :knd shall :upend :ukd suppienu•nt thecncenants and agn•k•ments of this Mortgageasifthe odor were a part here~f- 7. Protection of Lender's Security. If Borrower fails U, perform the c•fn•enantsand agreements rnntained in this Mortgage, or if any action or proceeding is commenced which material!}• affects I xnder's interest in the Property, including, but not limited to, eminent domain, fnsol\•encp, code enforcement, or arrangements or prfkce•edings im•olcing a bankrupt or decedent, then Lender at [.ender a option upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Ixnder s interest, including, but not limited to, disbursement of reasonable attorney's ft•es and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, 13urn+wer shall pay the premiums required to maintain such insurance in effect until such time as the rf•quirement for such insurance terminates in accordance with Borrower's and [,ender's written agreement or applicable (.aw. Burrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph l hereuf- Any amounts disburskd by Lender persuant to this paragraph 7, with interest there+kr+, shall become additional indebtedness of Borrower secured by this Mortgage. Unless }iurrower and !.ender agree to other terms of payment, such amounts shall be payable upon notice from [.ender 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 rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. tiuthing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. J I ~ik3~~ ~a~E cos •