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Home My WebLink About2005 Borrower and Lender covenant and agree as 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 latecharges as provided in the Note, and the principal of and interest on any F uture Advances:tiecurcvi by this Mortgage. 2. Funds for Tatcea and Insurance. Subject to applicable law or to a written waiver by Lender, Kurrower shall pay to lxnder on 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 of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twel[th of yearly premium installments for hazard insurance, plus oneytwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by lxnder 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 it Lender is such an institution). (.ender 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 (.ender to make such u 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, (.ender shall not be required to pay Borrower any interest or earnings on the Finds. Lender shall give to $orrower, 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 as additional security for thesums secured by this Mortgage. If the amount of the Funds held by (.ender, together with the future monthly installments of F unds payable prior tothe 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 shat) be, at BotTOwer'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 ae they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days fmm the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of a!1 sums secured by this Mortgage, lxnder shall promptly refund to Borrower any funds held by (.ender. If under paragraph 18 hereotthe 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 its acquisition by Lender, 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 lxnder under the Note and paragraphs 1 and 2 hereof shall be applied by Fender first in payment of amounts pay able to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of ?he Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shat) pay all taxes, assessments and othen•harges, fines and impositions attributable to the Property which may attain a priority over this lllortgage, and le:+schold payments or gn,u nd rents, if any, in the manner provided u nder paragraphs hereof or, if not paid in such manner, by Borrower making payment, when due, dinY•th• to the paycY• thc•reY,f. Rorrr,wersh:+ll ?romptly furnish to lxnder :+II notices of amounts due under this paragraph.:rod in the event Borrower shall make payment dinY•tly, Kormwershall promptly furnish to Lender receipts evidencing such payments. l;<,m,Krr shall prompth• discharge any lien which has priority over this Mortgage; prcwided, that Burrower shall not be required to discharge am• such lien so long as Borrower shall agreY• in writing to the payment of theobligaGon secured by such lien in a manner acceptable to lxnder, or shall In F;INNI faith contest such lien b>•. ordefend enfonrnu•nt of such lien in, legal prerc•eedings which operate to prevent the enforcement of the lien or G,rtcvtun• of the i'n,tN•rh• ur any pars tl+a•r+,.f. :i. Hazard Insurance. Borrower shall keep the improvements noK• existing or hrreafter eree•ted on the Property insured against loss by Fire, hazards included within the term "extended c•ove•rage," and such other hazards :+s lxnder may require and in such amounts and forsuch penc,ds as lxnder may require; provided, that lxnder shall not nYtuim that the amount of such rnve•r.+gc• exceeYl that amount of coverage rcYtuireY} to pay the sums seY•ured by this Mortgage. ' The insur.+ncr carver providing the insuramce shall he chosen he Burn,K~e•r .uhj+Y•t to appn,a•al by Lender: pn,vid+Yl, that such :+ppnn•al xhall not be unreascmabh• avithheld.:111 pn•miums un insurulce pnlir•ir•..hall Ix• paid in the manner providcYl under paragrph hereY,f ur, if nut paid in such manner, by fiorruwer making paCrnrnt. avhan riot, dtrrrtl~• t„ the insurance carrier. All insurance policies and renewals thereof shall }x• in form acceptable to 1 •nder and shall include a standard mortgageclause in faa•orof and in form acceptable to Lender. l,+•ndershall haarthe right to hold the tNdll'Ies and renewals therlv,f, ilnd RorrOwershi+U pn,mpth• furnish to 1 w'nder all renewal notices and all receipts of paid premiums. In the c•a•eut of loss, Iturn,wer shall gia•e prrrmpt notice to the insurance carrier and Lender. Fender may make prrN,f of loss if not made prompth• by Borrower. Unless lxnder and 13om,wer otherwise agree in K•nting, insurance pnrc•eYds shall hc• applied to restoration or repair of the Properh• damaged, proaided such restoration or repair is erv,nomicalh• feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economie•ally feasible, or if thr security of this Mortgage would tx• impaired, the insurance pn,ceedsshall be applied to the sums secured by this Mortg:ge, with the excess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails ttr respond to lxnder within alt days from the date notice is mailed by I.ende•r to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Fender is :+uthorized to culleY•t and :+pph• the, insurance prrN•eeYls at Le•nder's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless lxnder and Borrower otherwise agnY• in writing. any such application of prrx•eecls to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and '?hereof or change the amount ofsuch inst<-+Ilments. If under paragraph IK hereof the Property is acquired by Lender, all right, title :+nd interest of Born,wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the .ale or acgwsition shall pass U, L1•nder to the extent of the sums secured by this 1lurtgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otYroperty; LeHSehOlds; ('ondominums; Planned l?nit Developments. Borrower shalt keep the Property in good repair and shall not commit K•a~te or {N-trot( impairm(•nt or d(•teriuratiun of the Pruprrty and shall comply with the previsions of any tease if this Mortgage is on a le.+sehold. If this Mortgage i. on a unit in a rnndominium or a planned unit development, Burrower shall perform all of Borrower's obligations under the, deY•laration or covenants ere :+tint;or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planneYl unit development, and constituent documents. If a condominium or planned unit development nder is executed by lir,rrflwer :rod r<Y'11rd(YI IOgf•ther with this Mortgage, the covenants and agreements of such rider shall }re incorpe,r.+ted into and .hall amend and supplenu•nt the cocen:u+ts:Ind agreements of this Mortgage as if the nder were a part hereof. 7. ProteMion of Lender's Security. If 13orruwer fails to perform the eY,venants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, insolvency, Bode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [xhder at [xnder's option upon notice to Borrower may make such appearances, disburse such soma 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 (.ender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain Nuch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender'e written agreement or applicable [.aw. Borrower shall p:•y the amount of alt mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereY,n, shall become additional indebtedness of Borrower secured by this Mortgage. LJnless Borrower and Lender agree G? other terms of payment, such amounts shall be payable upon notice from lxnder 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 sorb rate would be contrary to applicable law, in which event such amounts shat! treat interest at the highest rate permissible under applicable law. {Nothing contained in this paragraph 7, shall require Lender trr incur any expense or take any action hereunder. G 319 PaGE 1993