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Home My WebLink About0847Borrower and Lender covenant a~d agree aa follows: 1. Payment of Principal and Intereat. Borrower shell promptly pay when due the princiQal of and intereBt on the indebtednesa evidenced by the Note, prepayment a~d late charges aa provided in the Note, and the principal of and intereston any Futu~e Advances eecured by thie Mortgage. 2. Ftitnde tor Taxes and Ineurance. Subject to applicuble law or to a written N•aiver by Lender, Borrower shall pay to Lender on the dey monthly inawllmente of principal and intereet are payable unde~ the Note, until the Note ia paid in fuil, a sum (herein "Funda") equal to on~ twetfth of the yearly taxes and assesaments which may attain priority o~•er thie Mortgage, and ~ound renta on the P~operty, if any, plus one- twelfth of yearly premium inatallments for hazard inaurance, plus onPtwelfth of yearly premium instalimenta for mortgage ineurance, if any, aU aa reaeonably eAtimated initially and from time to tirr~e by Lender on the basis of assesamente and bills and ~easonable eetimatea ther.+nf ina Hunas shaii ix heia ~n an met~tuUon the deposite or accounta of which are ineured or guaranteed by a Federal or State agency (including Lender if I.ender is ~uch an inetitution). Lender ehall apply the Funds to pay eaid taxes, asaeaamenta, ineurance premiums and ground rente. Lender may not charge tor so holding and applying the Funde, analyzing said account, or verifying and compiling said assesementa and bille, unlees I.ender pays Borrower intereat on the F'unda and applicable law permite Lender to make auch a charge. Borrower and Lender may agree in writing et the time of execution of thia Mortgage that interest on the Funda ehall be paid to Borrower, end unles~ such agreea:ent ie made or applicable law requiree euch intereat to be paid, Lendrr shall not be required to pey Borrower any interest or earnings on the ~-nds. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credita and debits to the Funda and the purpose for which each debit to the Funda v- s-s made. The Funds are pledged as additional security for the aume eecured by this Mortgage. If the amount of the Fl~nde held by Lender, together v-~th the tuture monthly inatallments of Funda payable prior to the duedates oftaxea, asaeeements, ineurance premiume and ground renta, ahall excred the amount required to pay seid taxes, aeaesements, ineurance premiums and ground rnnta as they fall due, auch excesa shall be, at HoiTOwei s option, either promptly repaid to Borrower or crediied to Borrower on monthly inetallments of PLnds. If the amount of the Funde held by I.ender ehall not be auffirient to pay taxee, asaesamente, inaurance premiume and ground renta as they fall due, Borrower ahall pay to I.ender any amount neceaeary to make up the deficiency within 30 deys from the date notice ia mailed by I.ender to Borrower requesting payment thereof. Upon payment in ful! of alj eums eecured by this Mortgage, lxnder shnll promptly refund to Borrow•er any funda held by Lender. lf under r-' ~-e - ~-r- "~T9OT°^h 19 h~.~f :~:~ ~`y~::j :o a^v:u 'v7 i'ic i ~i,~'iei2y ie uii~rrvviesr acyuirru oy L,ender, i,ender enaii apply, no later than immediatdy prior to the eale af the Property or ite acquieition by Lender, any Funda held by I.ender at the time of applicatiun as a credit againet the sums secured by this Mortgage. 3. Application of Payments. Unlesa applicable law provides othervvise, all paymenta received by [.ender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender firat in paymrnt of amounts payable to I.ender by Borrow•er under paragraph 2 hereof. then w intereet payable on the Note, then to the principal o! the tiote, and then to intereat and principal un any Future Advances. 4. Chargea; Liene. Borrovver shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain e priority overthis Atortgage, and leasehold payments or ground rents, if any, in the mnnnerprovided under paragraph 2 hereofor, ii not paid in such manner, by Borrower making payment, when due, directly to the pa~ er thereot. Borrow•er shal! promptly furnieh to [.ender all noticee of amounts due under this paragraph, and in the e~•ent Borrow•er shall make pa~•ment directly, f3orrower ehali promptly turniah to Lender receipte evidencing such payments. E3orrower Bhall promptl~• dischargr any lien w•hich haa priority o~•er thie:~tortgnge; provided, that Borrower ahall not be reauired todischarge any such lien so lonK a:c Rorro..•er shall aRreeln writing to the payment of the obligation aecured by such lien in a manner acceptabie to [.ender, or shall in good faith cunteet such lien by, or defend entorcement of auch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiwre of the E'roperty or an}• part therr~f. 5. Hazard [nsurence. Rorrower shall keep the empmven~PntA no~• exiating or hereafter erected on the Propeny ineuted against loas by- fire, hazarda included within the term "extended co~•erage," and such nther hazards ae I.ender ma~• require and in such amounts and for such periods as I.ender may require: provided, that I.ender shail not reyuire that the amount of auch coveraRe exceed that amount of coverage required to pay the sums secured by this ~1ortQaKe. - The insurance camer pro~~iding the insurance shall he chusvn b~• Itorrr,w•er subject to appro~•a! b~• I,ender; pro~•ided, that euch epproval ehall not be unreasanably withheld. All premiums on inaurance policiex ~hall be paid in the mannec pro~•~ded under paragraph 2 hereof or, if not paid in such manner, by E3orror~er making payment, wht~n due. dirccth• t~ the ineurance carrier. All ineurance policiee and renewale thereof shali be in form arceptable to I,ertder and shall inciude a etanderd mortgageclausein fevorof and in form accepteble to Lender. I.end~r shell heve the right to hold the p~~licies and reneK•ale thereof, and Borrowerehall promptly furniah to i.ender sil renewal notices and all receipta of paid premiums. (n thP e~•ent of luss. Rorruwer ehall give prompt notice to the in~urance Farrier and Lender. Lender may make proof of loas if not mnde promptly bp Rorrower. Unlese Lender and Borrovv~r otherwise ag:ee-in w•rit~ng, inRUrance procee~ ehall be applied to restoration or repair of the Property damaged, provided such reaWration or repair ie economically feleible and the~aecunty- of this ~lortgage is not thereby impaired. If ~uch matoration or rnpair ie not economically feasible or if the aecurity of this \iortgage would be impaired, the ineurance proceeds shall be epplied W the auma secu~ed by thie btortgage, w~th the excess, ~f any , paid to &~nower. If the f'ro~erty is abandoned by Borrower, or if Borrower feib W reapond to Lender within 30 daya irom the date noticc is maiird bp I.ender to Horrovver that the inaurance carrier offers to settle a cleim for ineurance benefits, Lender ia euthonzed to collect and apply the insurance proceeds at Lender'e option either to reetoration or repair of the Property or the eume aecured by thie ~lortgzRe. Unleas Lender and Borrow~er otherw•ise agree in w•ritinK, any such appiication of proceede to pnncipai ahell not extend or poetpone thedue dete of the monthly inetsllmente referred to in par:~QraohR 1 nnd'L hereuf or change the amount of euch inetallments. If under paragraph 18 hereof the Pmperty ie acquired by Lender, a{1 nght, title and interest of Borrc,w•er in and to any ineurance poiiciee and in and to the proceed~ thereof resulting ftom darr.ege to Property prior to the ~afe or acyuieition shall pasx to L.ender to the extent of the eums secured by thi~ Mortgage immedietely prior to 9uch sale or acquisiUon. 6. Preservation and lfaintenance of Properiy; Leasehoide; Condominume; Nlanned (; nit Development~. Borrower shall keep the Property in good repair and shali not commit w•aste or permit impairment or deteriorntion of the Property and sheil comply with the proviaione of any leaee if this ~fortgaqe ie on a leasehnld. (f thie 11ort;taRe ie on a unit in a condominium or a planned unit d~velopment. Borrower ehal! perform all ot Borrower's obligatione under the declar~tion or co~•enante creatinKor govern~ng the condominium or planned unit development, the by-lawe ar.d regulations of the cond<~m~nium or planned unit de~•elopment, and con~tituent documenta. If a condominium or planned unit de~•elopment rider ia executed by fiorrow•er and recorded toKether Hith thie :1lortgage, the oovenante and agreements of such rider shall be ~ncorporated into and shal l amend :-nd RuRpiement the co~•enunt~ s~nd eKreementa of thie Mortgage as if the rider were a part hereof. 7. Protection of Lender'r Security. If Borrower faile to perform the covenante end agreemente conteined in thi~ Mortgage, or if any action or proceeding ie commenced which materiaUy affectn Lender'e interest in the Property, including, but not limited to, eminent domain, in~olvency, rnde enforcernent, or anangements or proceedinge invotving a bankrupt or decedent, then L,ender et Lender'~ option,upon notice to Borrower may make euch appearances, dieburee euch eume and take euch action ae is neceseary to ~rotect Lender'~ int~re~t, including, but not l~mited to, dieburaement of reaeoneble attorney'8 feee and entry upon the Property to make repair~. If Lendrr required mortgage insurance as e condition of making the loan aecured by this Mortgage, Borrower ehall pey the premium~ required to maintain ~uch insurence in effect until euch time ae the requirement for such ineurance term~natee in sccordance with Borrower'~ and Lender'a written agreement or eppiicable I,aw. Borrower eha11 pay the amount of ail mortgaqe inaurance premiume in the manner provided under p~ragraph 2 hereof. Any amounts diebureed by Lender perauant to this paragraph 7, with interest thereon, ehall become additional indebtednea~ of E3orrower eecured by thie N~rtgage. G'nlesa Borrower and I.ender agree to other terme of payment, auch amounts ~hall be payeble upon notice from Lender to Bormwer requeeting payment thereof, and ahall bear intereat from the date of diebursement et the rate peyable from time to time on outetanding principal under the I`ote unleas payment of interest ac such rate would be contrary to applicable :aw, in which event such amounts ehal: bear intereat at the highest rate permiaeible under app:icable law. tiothing conta~ned in this Faragraph 7, shall require i.endrr to incur any expense or teke any action hereunder. ~~~351 ~A~E 846 _ -_ _- ~ z-~