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Home My WebLink About0534 Iorrower and [.ender covenant and agree ae 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Ftittda for Taxes and Insurance. SUb)ect to Applicable l2?W 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, t? sum Therein "Funds '1 equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plusone-twelfth ofyearly premium installments for mortgt+geinsurance, ifany, all as reasonably estimated initially and from time to tine by Lender un the basis of assessments and bills and re:?sonuble estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guarnnteed by a Federal or State agency (including Lender if Lender is 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 t?nd 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 Fttnde. Lender shalt give to Borrower, without cha;ge, 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 Ixnder, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rent,9, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwer s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, $orrower shall pay to Lender any amount necessary to make up the deficiency within :{odaye from the date notice is mailed by bender to $orn,wer etc{nesting payment thereof. Upon payment in full of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by (.ender. If under paragraph IS hereof the Property is sold or the Property is othemise acquired by (.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by 1.ender, any Funds held by Lender at the timeof application ass credit against the sumssecured by this Mortgage, 3. Application of Payments. Unless applicable law provides otherwise, all p:+yments received by Lender under the Note and p:?ragraphs 1 and 2 hereof shall be applied by Lender fin:[ in payment r+f nmountti payable to i.ender 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 all taxes, assessments and other charges, fines and impositions attributable ?o the Property which may attain a priority over this Mortgage, end leasehold payments or [;round rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, dirf•c•tly to the pavf•f• thereof. Rorn~K•xrshaN promptly furnish to Ixnder al! notices of amounts due under this paragraph, and in the event Borrower shall m:+ke payment dirf•f•th•. Burrower shall promptly furnish to Lender receipts evidencing such payments. 1orrower shall prompth• discharge arty lien which has priorih• over this Mortgage; provided, that Burrower shall not be requirfd todisc•harKe any wch lien su IunK:+. !{c+rn+wersh:+ll:+{.h•fr inwritinK to the payment oftheobtiKationsecured by such lien in a manner acceptable to Lf•ndxr, or shall in {;rNx1 f:?ith contest such lien by, ordefxnd f•rtfi,n•ement ofwch lien in, lekal proceedings «hich operate to prevent the enforcement of the lien ar furfxitun• of the Pro{x•rh- ur :un• part therfr~f. 5. Hazard insurance. Born?w•er shall kfrp the improvements now existing or hemafter erected on the Property insured against lossby fire, hazards included within the ?erm "extxndf•cl ruver.?Ke," and wch other hazards as lender may reyuire and in such amuuntc and forsuch periods as Lender may require; providf•cl, that Lf•ndxr sh:?11 not nc{uirr that the amount of such cover:+Kx exceed that :?mount of coverage rcYtuirf•d to pay the sums sef•urfrl by this MortKaKe- The insurance carrier prnvidinK the insurancf• shall iK• r•ho.en b~- ({nm~wer wbject to appro~•al bt• l.cvuler; pruvidf•d. that such :+pproval shalt not be unn•asunal?ly withhf•ld. All prxrniums on insurance {N~hcic. shall he• p:+id in the, manner providfvl under par:?Kraph'~ hxrf•r+f or, if nut paid in such manner. by li:+rruwer makinK p:n•mxnt. when duc•, dirf•r•th• t.. the inwr.?ncf• carrier. - Allinsurance policies and renewals thereof shall Ix in furor acceptable d~ 1.f•nder and shall include:? standard murtgageclause in favorof and in form acceptable to [,ender- Lendf•rshall have the riy;ht to hold the {wlicies and renfwals thereof, and Boor+wershall promptly furnish to :.ender all renews! notices and all nr•eiph of paid premiums- In the xvfv+t of lass. Borrower shall Kive prompt notice to the insuranrn carrier and Ixnder. Ixnder may make pr~N+f of loss if nut made promptly b~~ Burr~wer- Unless Ixnder and I{orruwer otherwisf• aKnr in writinK, insurance priK•ecds shall tx• applied to restoration or repair of the Property damaged, provided such rxstor,+tiun or repair is f•.-unun+icall}• fxasitde and the security of this MortKaKe is nut thereby impaired. if such rf•staration or repair is not economically feasible ur if thf• sf•c•urity of this ~1ortKaKe would tx impaired, the insurance proceeds shall be applied to the sums seCUrtd by this Mortgage, w+th thxexcess, if any, Paid to i{orrowrr. if ii+e i' of ~ -~a ;da l:y .:f I?^r?;ar•~• f~i1g eo respond to Ixnder within a!1 days from the date notice is rnailc•cl by (,ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, (xnder is authorized to r•ollf•c•t and apply the insurance pnrc•crds :+t Lender's option either to restoration or repair of the Property or the sums secured by this ~lortKaKe. , Unless [xnder and Bornower otherwise agref• in writinK, any such application of pmcxeds to principal shall not extend or postpone thedue ~latn ~~f flip m+~nthly inst;illmrnt_S referred to in par.+Kr.?phs 1 and'.'. hereof ur chanKe the amount of such installments- If under par.+graph IR hereof the Property is acquired by (.xnder, all right, title and interest of Borrower in and to any insurance potic+es and in and to the proceeds thereof resulting from damage to Property prior to the sale or acyursitiun shall pass U+ lknder to the extent of the sums securfd b_v this ~tortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanccof Property; [h•aseholds;('ondominums; Plannzd C?nrt Uevelopmente, L{•_+rrowerchall kf•ep the Property in Kocrd repair and shat! not commit waste ur permit impairment or deterioration of the Property and shall comply with the pru~•isions of any lease if this MortK:+Ke is on a leasehold. If this MortK:+Kx is on a unit in a condominium or a planned unit development, Kurn+wer shall perform a!1 of I{ornrwer's ubliKations under the df•e•laration or cuven:?nts creatinKur Kocern?nK 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 is xxf•c•uted by Fiorrowcr :?nd recorded tuKether yith this i\tortgage, the covenants and agreements of wch rider sh:+Il he iru-urpur,+ted into and .hall arnend and supplf•ux•nt lhrc•uvenants and aKre•e•ments of this Mortgageas ifthe rider were a part heSca~f- 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender'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 bender at tender's option,upon notice to $orrower may make each appearances, disburse such sums and take such action as is necessary to protect Lendei a 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 Mortgage, Borrower 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. - Aoy amounts disbursed by Linder persuant to this paragraph 7, with interest there+~n, shall become additional indebtedness of _ Korrower secured by this Mortgage- Unless Borrower and Lender agrt•e to other terms of payment, such amounts shall be payable upon notice from Ixnder to Borrower requesting payment thermf, and shall bear interest from the date of disbursement at the rate payable from time to time un ofrtvtandinq principal under the I~'ote unlesq payment of interest at such rate would be contrary to applicable law, in which event such amuunta shall bear interest at the highest rate permissible under applicable law- Nothing contained in this paragraph 7, shall ' rf•quire Ixnder to incur any expense or take any action hereunder. . - ~f~~K 327 PAGE 533 .._F _ ~.:z