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Home My WebLink About1997 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 e~•idenced by the Note, prepayment and latecharges as provided in the Note, and the principal of and interest om any Future Advances secured by this Mortgage. 2.1''unds for Ta:es and Insurance. Subject to applicable law or to a written waiver by lx++der, Borrower shall p:+y to lxnder on the day mc,nthly installments of principal and interest are payable under the Nute, until the Note is paid in full, t+ sum (herein "Funds") equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Alorigage, and ground rents on the I'roperiy, if any, plus one• twelfth of year( y premium installments for teased insuranc~•, plus one-twelfth of yearly premium lost:+llments for mortgage insurance, itany, all as reasonably estimated initially and from time to time by (.ender 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 [.ender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and kruund rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said <tsseasmenta 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 th+s 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 reyuirr+l 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 F unds are pledged t+s additional security for the sums secured by this Mortgage. If the amount of the Flrnds held by (.ender, together with the future monthly installments of Funds payable prior to the duedatea of taxes, assessments, insurance premiums and ground rents, shall excaed the :+moun/ required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Ko+mwer's option, either promptly repaid to Borrower or credited to Borruweron monthly installments of Funds. _If the amount of the Funds held by lxnder shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within :i0 days from the date notice is mailed by lxnder to &xrower requesting payment thereof. Upon payment in full of all sums secured by this hlortq:+qe, Lender shall promptly refund to Burrower any funds held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by bender, Lender shall apply, no later than immediately prior to the sale of the Property or itsacquisition by (.ender, any Funds held by (.ender 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 - paragrapha 1 and 2 hereof shall be applied by (.ender fimt in payment of amounts payable to bender by Borrow>r under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nc,te, :+nd then to interest and principal on any Future Advances. 4. Charges; Liens. Rorrowershall pay all taxes, assessments:+nd othen•harges. Pints and imi,c)sitions;+ttrihutahle to the Property which nary attain a priority over this Mortgage, and leasrhutd payments urgmund rents. ifany, in the mannerpn,vided under paragr.+ph'l hereofor, +f not paid in such manner, by Borrower making p:+ynu•nt. when due: din•t•th• to the p:p•tr thertrrf. Born,wrr shall promptly furnish to lxnder :ell notices of amounts due under this paragraph• and in the evt•nt Kurrower shall make payment dirt•c•tly, Burnn~•er shall promptly furnish to I .ender receipts evidencing such payments. liorn+~cer shall prumpth• discharge any lien which has priority over chi. Mortgage: provided, that liorn)wer shall not be required to disch:?rke any such lien su lank as liorn,x•ersh:?!l akrtr in writink to tht• payment of theublikatiun secured by much iit•tt in a utattller a. ce{;iahle fo (.ender. or 4ha11 rn k+r+ai faith rnntest such lien bv, ur defend enforcenu•nt of wf•h lien in, legal prfx•etdings which operate to prevent the enforcement of the lien or forfeitures +d the I'rol,f•rty or am• part then•+,f. Nazard insurance. Borrower .hall kt•c•p the improvements now f•xistink or he•r~after erec•tt•ci un the Proprrh• insured against loss by Grf•, hazards included within the term "extendtrl cyrverakt•," and such other haz:vds as I.t•nder m:+y n•tiuire and in such amounts and fur such pe•nods as lxnder may n•yuire: providwl, th;tt I.t•nder shall not require that the amount of wch c•+,ver.?ge exct•tvi that amount of coverage rf•ctuired W pay the sums st•t•urt•tl by chi. Mortgakr. The insur.+nro e:+rrier pruvidink the insurnlre shall hr chosen by Borro~ccr subjw•t b, approval by Lender: pn+vidwl, that such approval si)au nut I,e u?Irr:f~+rnAi.i~ . - ~•Gr-~r•:.hall ins paid in the m:uuu•r providt•r1 under paragraph hert•+,f or, if - - nr+t paid in such manner. by Itc,mrw-er m:?kink paynu•nt. when du+•. din•+-tlc to the insurance carrier. All insurance policies and renewals thert•of sh:+ll t,t• in form art-t•ptable to I.t•nde•rand shall include a st:?nd;?rd murtgagech?use in favorof .+nd in form acceptable to Lender. Lendt•rshall h:n•e the right to hold the Il+diries and n•newals then•of. and Borrower shall promptly furnish to ,,ender all renewal notices and all nripts of paid premiums. In the event of loss, Bornrw•er shall kivr prompt notice to the insurance carrier :fnd (.ender. Lender may make pn,c,f of loss if not made prumpth• by Borrower. ~ - tinless [ender and liC,rn,wer otherwise agrt•t• in w•ritimk, insurance pr+x•trds sh:?Il tx• ;+pplied to restoration or repair of the Property damaged, pro~~ded such resG,r.?tion or repair is e•t•onomicalh• fe:?sible and the sfrurity of this ~turtgake is not thereby impaired. If such restoration or repair is not economically feasible+.r if tht• st•c•urih• of this Mortgage would Is• impaired, the insurance pn,ceecis shall he applied tr ~ the sums secured by this Mortgage. with the excess, if any. paid U+ li+,rrower: If thc• Propt•ri}• is abanduntd by Rorrox•er, ur if Borrower fails to respond to (.ender within all days from the datt• notice is mailed by la•nder to Burrower that the insurance carrier offers tosettle a claim for insurance benefits, Lender is authoriccd to collf•+•t and apph• tht• insurance pr+,cf•t•ds at Lender's option richer to restoration ur repair of the Property or the sums sec•urecl by this Murtg:?ge. Unless Lender and fiorrower otherwise agrt•f• in writing. any such applies+tiun of prtx•re•tis to principal shall not extend or postpone thedue date of the monthly installments referrf•ci to in parakraphs t and hen•+,f or chanke the amount of such lost:+Ilments. If under paragraph 13 hereof the Property is acquired by 1~•nder. all right, title and interest of Borrower in and G, any insurance p,licies and in and to the proceeds thereof resulting from damage to Pmptvh• prior to the sale or aeyulsition sh:?II p:+ss br Lender to the extent of the sums secured by this 1lortgage immediately prior to such sale or acquisition. 6. Preservation and !4laintenanc•c of Property: La•aseholds; ('ondominums; Planned Unit Developments. Borrower shall keep the l'ruperiy in goc:d repair and shall not c•ummit waste or permit impairment or deteriur,+tion of the Property and shall comply with the pnn•isinns of any lease if this Mortk:+ke is on a leasehold. If this Mortgage is on a unit in a rnnduminium or a planned unit development, Borruw•er shall perfi)rm all of Borrower's oblikations under the dt•claratinn on•uvenants crf•:rtinkor gucerning the condominium or planned unit development, the by-laws and regulations of tht• condominium or plannfd unit development, and constituent documents. If a r-undominium or planned unit development rder Is.t•xf•t•uttd by li+,rnrw"er and recorded tukether with this Mortgage, the covenants and ,,t; n•ements of such rider shall I,f• incoriN,ratfd into and sh;?II amend and supplement the revenants and akrf•e•ments of this Murtgagt• as if the Wrier were a part hereof. 7. Protection of Lender's Security. If Borrower 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 1'ruperiy, including, but not limited to, eminent domain, insolvency, rnde enforcement, or arrangements or proceedings involving a bankrupt or decedent, then (,ender at tender's 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 U,, 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 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 to this paragraph 7, with interest thereon, shat! become additional indebtedness of Borrower secured by this Mortgage. t,'nless Iiorruwer and bender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Bormwer requesting payment therrnf, 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 he rnntrary to applicable lsw, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in ibis paragraph 7, shall require (.ender p, incur any expense or take any action hereunder. • ''k`319 PaGEi985