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Home My WebLink About0455r. E;orrowe~ and l.ender covenant and ag~ee as tollows: 1. Paymeet of Principal a~d Interest. Borrower shaU promptly pay when due the principal ot and intereat on the indebledneas evidenced by the Note, prepayment and late chargea as pmvided in the Note, and the principal of and intereat on any Future Advancea secured by this Mortgage. 2. fiu~de !or Tsxea and I~surance. Subjecl to upplicable law or to a written waiver by I.ender, l3orrower shall pay to Ixnder on the day monthly installments of pri~cipal and intetest are payable under the Note, until the Note ic ~aid in tull, a sum (herein "F'unds") equal to one twelfth of the yearly taxea and asaessmente which may attain priority over this Mortgage, and grou~d rents oo the Properly, ii any, plua one twellth of yearly premium installmenta for hazard insurance, plua onetwelfth ofyearly pmmium installments for moRgage inaurance, if any, a~ as ceasonably eatimated initially and from lime to time by l.ender on the bt~sis of sissessmeots nnd billa and reusonable estimates the~eof. The ~nda ehall be held in an institution the depoaita or accounts of which are insured or guaranteed by a Fede~al or State agency (including Lender it l.ender is auch an inetitution). l.ender shall apply the Funds lo pay said taxes, assFSSmenta, inaurance premiums and ground rente. Lender may not charge for ao holding and applyi~g lhe Fl~nds, analyzing said account, or verifying and compiling said asseesmenta and bills, unleee I.ender paye Borrower inierest on the Funds and applicable law permite I.e~der to make euch a charge. Borrower and Lender may agree in writing at Lhe time of execution of this Mortgage that interest on the Runds ahall be paid to Borrow•er. and unleas auch agreement ia made or applicable law requirea auch intereat to be paid, Lender shall not be required to pay Borrower any intereat or earninge oa the FLnds. Lender ehall give to Borrower, without charge, an annual accounting of the Funde showing credita and debits to the Funda and the purpose for which each debit to the Funda wus made. The Funds are pledgedas additional security for the aums secured by this Mortgage. If the amount of the ~nda held by I.ender. together with the future monthly inslallments of Funda payable prior to the duedatea of taxes. asseeaments, insurance premiuma and ground rnnts, shall excred Ihe amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shaU be, at Bo~rower s option, either prompdy repaid to Borrower or credited to Borrower on monthly installmente of ~nds. If the amount of the Funda held by [.ender yhall not be sutficient to pay taxea, assesaments, i~surance premiums and ground rente as they fall due, Borrower shall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereot. Upon payment in full of all auma secured by this Mortgage, I.ender shall pmmptly refund to Iiorrower any funds held by Lender. I[under paragraph 18 hereof the Pcoperty ia sold or the Property is othervvise acquired by l.ender, I~ender sh~+ll apply, no later than immediately prior to the sale of the Property or ita acquiaition by l.ender, any Funds held by I.ender at the time of application as a credit against the sums secured by thia Mortgage. 3. Application of Paymenta. Unless applicable law provides otherwise, all payments received by Irnder under the Note and paragraphs 1 and 2 hereof ahall be applied by [.ender firxt in payment of amounts payable to l.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 t:~xes, ~sscssmcn~s and otherrharges, fincs and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or Kmund renLs, if any, in the manner pro~ ided under paragraph 2 hereof or, if not paid in such manner, by E3onower making paymerit, when due, directly to the payee thereof. Burn-wcr shall promptly fumish to I.ender ~,{I notices of amounts due under this paraK. aph, and in the e~~ent I~~rruwer shall make payment direcdy, Rormrver shall promptly furnish to l,ender receipts evidencing such payments. i~c~rrower shall promptly diccharKe any lien which has priority orer this Mortgage; provided, that Korrower shall not be required to discharKe any such lien so lonK as I~-rrovrer sh:~ll agree in writing U~ the payment ~~f theobligation secured by such lien in a manner acceptable to l.ender. or shal) in Rood Caith n~ntest such lien by, urdefend rnforcY•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture uf the Prc~perty or any part therrof. 5. Hazard Insurance. Bormwer shall keep the impruvemenl., now exi:~ting or hemafter erected on the Yroperty insured against loss by fire, hazards included within the term "extended coveragr,° aind such other hazards as I.ender may require and in such amounts and [orauch periods as I.ender may require; pmvided, that I.ender shall not require that the amount uf such cYn•eraRe exceed that amount of coverage required to pay the sums seceirec! by this MortKaKe. The insurance carrier pruvidinK th~ insuranrr shall t-c• ch~~su•n t-y Iturruwer sulye~c•t tn :ippruval b~• 1 xnder, pru~•idc~, that such .ipprova) shall not be unre.4tion~bly withheld_ All premiums un insur:~n~ti• ~wlii•it~..hail i-e p:~id in thF inannrr provid~Y1 under paraKraph t hereof or, if not paid in such manner. b~• fiorrower m.-kinK p:iym~~nt, vrhen due. din~•th• tu th~• in.uran~e carriFr_ All insurance policies and reneveals thereof shall be in furm ace-eptable to I.c~~der and shall include a standard mortgaKeclause in favor of and in form acceptable to I.ender. I.ender shall ha~•e the riKht tu huld the {~~licies and renev-•:+Is thereof, a~d Borrowershall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the e~•ent uf loss, I~~rrower shall Ki~ e prompt notice to the insurance camer and I.ender. I.ender may make proot of los.s if not made pmmpUy by I3orrower_ Unlesa Lender and Borrower otherivise agree in w•riting, insur:ince procrec~c shall F-e applied to restoration or repair of the Property damaged, provided such restoration or repair is erunomically Ceasible and the sr~vrity of this Murtgage is not themby impair~ci. If such restoration or rnpair is not economically feasible or if thr serurity of this Mortgage w~ould be impaired, the insurance proceedsshall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to 13orrower. ~f the F'roprrty is abanduned by I3orrower, or if E3orrower faila to respond to Lender within :i0 days from the date notim is mailPd b~ t~ender to Borrower that the insurance camer ofters to settle a claim for insurance benefits, [~ender is authorized to coltert and :~pply the insurancc~ pmc~refs at I.ender's option either to restoration or repair of the Property or the sums secured by this MortKaKe. Unless Lender and E3orrower utherwise agree in w~ritinK, anp such applicatiun of procerds to principal shall not extend or postpone thedue date of the monthly installments referred G~ in par:~Kraphs 1 and 'L l~rreof or chanKe the amount of such installments_ If under paragraph 18 hereof the Property is acquired by i.ender, all right, titlP and interest of &~rn-wer in and to any insurance policies and in and to the proceeds thereof resulting from damaRe to Property prior to the sale or acqu~sitiun shall pas.~ to I.ender to the extent of the sums secured by this btortgage immediately prior to such sale or acqui9ition. 6_ Preservation and Mainlenanceof Property; I.easehold~: ('ondominums; Planned Unit Developmente. (3orrowershall keep the Property in good repair and shall not commit v-~aste or permit impairment or deterioratinn of the Property and shall comply with the proviaions of any lease if this MortgaQe is on a leasehuld. If this A1urtKaKe is on a unit in a condominium .or a planned unit development, Ilorrower shall perform al) of I3orrovrer's obliKatinns under the declnratiun or co~•enants ~•reatin~;or govern~ng the condominium or planned unit development, the by-laws and reQulations of the conduminium or planned unit development, and constituent documenta. If a condominium or planned unit developmenl rider is executed by &~rto~+er and recorded t~ether with this Mortgage, the oovenants and aKreemenls of such rider shall be incorporated int~~ and .hall :~mend and supplement thennenants and aKreementsof this Alorlgageas ifthe rider were a part hereof. 7. Protection of Lender'B 3ecurity. If Borrc-wer faila to perform the eovenante and agreements contained in thie Mortgage, or if any action or proceeding ie commenced which materially affecta I.ender'e intereat in the Property, including, but not limited to, eminent domain, ineolvency, aode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make euch appearancee, disburee auch auma and take euch action se is neceaeary to protect Lender's intereet, including, but not limited to, diebureement of reaeonable attorney'e feee and entry upon the Property to make repaire_ If I.ender required mortgage ineurance as a condition of making the loan secured by this Mortgage, Iiorrower ahall pay the premiuma required to maintain such inaurance in ettect until euch tima as the requiremer~t for euch ineurance terminatea in accordance with Borrower'a and Lender s written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. Any amounte diebursed by Lender persuant b this paragraph 7, with intereat thereon, ahaU become additional indebtedness of Borrower aecured by thie Mortgage. Unless Borrower and I.ender agree to other terme of payment, auch amounte ehall be payable upon notice from Lender to Bornower requesting payment thereof, and ahall bear intereet from the date of diebursement at the rate payable from time to time on outetanding principal under the Note unless payment of intereat at such rate would be contrary to applicable law, in whieh event auch amounte ehall bear interest at the highest rate permissible under applicable law. Nothing contained in this peragraph 7, ehall require Lender to incur any expenae or take any action hereunder. £ ~ - -~~`"~-,~. ~ x.. ;.; ~ < _.. eo~x 345 PaCE 4~ 4 _~ ~ ~~~~~ ~