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Home My WebLink About1042. .~ Borrowe~ a~d [.ender rnvenant and agree as follow~: 1. Payment ot Principal and lnterest. Borrower shall promptly pay when due the princi4pal ot and intereat on the indebtednees evidenced by the Note, prepayment and late chargea as pmvided in the Note, and the principa! of and interest on a~y Future Ad~ ancee secured by thio Mortgege. 2. FLitda forTuea and Ineurance. Subject to applicable law or to a written waiver by l.ender. Borrower ehall pay to I.ender on the day • monthly inataUmente of principal and intereat are payable under the Note, until the Note is paid i~ [ull, a aum (herein "F~unds") equal to onc twelfth of the year~jr taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus onc twelflh of yearly premium inatallments for hazard inaurance, plus onetwrlfth ofyearly premium instaliments for mortgage insurance, if any. al! as reasonably estimated initially and from timc to tiR~e by Lender on the basis of e~ssesamrnts and bilts and re:isonable eatimates thereof. The ~Lnds shall be held in an institution the depoaita or accounts of which are inxared or guaranteed by a Federal or $L.ate agency tjncluding Lendet if L.ender is auch an institution). I,ende~ shal) apply the Funde to pay said texes, aeseasments, insurance premiuma and ground rents. Lender may not charge for so holding and appiyirtg the Funds, analyzing said aceount, or verifying and compiling aaid aaseasments and biUs, unless I.ender pays Borrower intereat on the ELnda aod applicable law pem-its l.ende~ to make euch e charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that intereat on the Funda ahall be paid to Bormwer, and unleaa~ such agreement ia made or applicable law requirea sach intereat to be paid, Lender shall not be required to pay Borrower any interest or eamings on the FLnda. I.ender ehall give to Borrower, without charge, an annual accounting of the I~ unde showing credita and debits to the Funds and the pu~pose for which each debit to the Funda vyas made. The Funda are pledged as additional security for the suma aecured by this Mortgage. ~ I[ the amount of the I~nds held by I.ender, together with the future monthly installmente of Fcnda payable prior to the due detea o[ta:es. naseeamenta, inautance premiums and ground rentR, shaH eacred the amount tequired to pay said taxea, assessments, insurance premiums and ground renta aa they fall due, such excess shall be, at Bo~TOwer'a option, either prompdy repaid to E3orrower or credited to Borrower on monthly inetallmente of F~nds. If the amount of the Funda held by Lender sha11 not be su~cient to pay taxes, assesea~enta, insurance premiuma and ~und rents aa they fall due, Bonower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by I.ender b Borrower requesting payment thereof. . Upon payment in full of all aums aecured by this Mortgage, Lender ahall promptly refund to $orrower any funds hetd by Lender. If under peragraph 18 hereotthe Property is sold or the Property is othemise acquired by I,ender, l.ender shall apply, no later thun immPdiately prior to the sale af the Property or ita acquiaition by Lxnder, any F unds held by L.ender at lhe time otapplication as a credit againat the aums secured by this Mortgage. 3. Appllcation of Payments. Unleas applicable law provides otherwise, all payments received by [.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.eader firat in payment ot amounts payable to l.ender by Sorrower under paragraph 2 hereof, then to interest payable on the Nvte, then to the principal of the Note, and then to interest and principa) on any Futum Advancea. 4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or~ if not paid in such manner, by Borrower making payment, whrn due, directly to the payee thereof. Bormwer shall promptly furnish to [.ender all notices of amounta due unde~ this paragraph, and in the event Borrower shail make payment directly, Borrower shali promptly furnish to I.ender receipts evidencing such pay~nents. f3c-rrower shail promptty discharge any lien which has priority over this Mortgaqe; provided, that Borrower shal! no: be required to discharge any such lien su lung as E3orrower shaU a~ree in v-riting to the payment of theobligation secured by such lien in a manner acceptable to I.cnder, or shall in g~Nxi faith contest such lien Uy, ordefend en[orcement of such lien in, legal proceedi~ge which operate to prevent the enforcement uf the lien or forfeiiure n! the I'roperty ur any part thereof. 5. Hazerd Inaurance. Bonow er shall keep the improvements now ex~sting or hereaRer erected on the Property insured against loae by fire, haaarda included within the term "extended cuvera~;e," and such other hazards as I.ender ma~I require and in such amounts and for auch periods ax l.ender ma~ require; provided, that Ixndrr shall not require that the amount oC such coverage exceed that amount of coverage required to pay the sums secured by this MortKaRe. The insurance camer providinK the insuranm sh:ill l~• chusen h~• liorruw~er subject to approval by Ixnder; pro~•ided, that such approval shall not be unreasonably withheld. All premiums un insurance µ~li~•ir. ~hall 1-P paid in thr manner providrd under paragraph'L hereof or, if not paid in such manner, by Borrower making payment, w•hen due, directly to the incurance carrier. . All inaurance policies and renewals thereof shail be in form acceptable to l.ender and shall include a standard mortgageclauee in favorof and in form acceptable to Lender. I.ender shaU have the righl tu huld the poliries ar-d renew als thereol, and Borrower ehall promptly turniah to i.ender all renewal notices and all receipts of puid premiums. In the event r,f 1oss. E3,-rruMer shalt give prompt notice to the inaurance carrier and Lender. Lender may make prooi of luss if not made promptly b~~ f3~,rruwer. Unleas l.ender and Rorrower otherwise agree in ariting, insuranm procecu: shall bc applied to restoration or repair of the Property damaged, provided auch restoration or repair is econumically fe~sible and the~u~curit~ of this Mortgage is not thereby impaired_ If euch reatoration or repair is not economically feasible or if the security of this Murtgage Nuuld be impaired, the insurance proceeds ahall be applied to the aums secured by this Mortgage, w~th the excess, if any, paid to ~rrowcr. If the I'roperty is abanduned by F3orrower, or if Borrower faila to respond to Lender within :i0 days from the date notice iK mailyd by I.ender u, Korrower that the insurance carrier offere to settle a claim tor inaurance benefits, I.ender is authorized tu cnllect and apply the insurance proceedc at [.rnder's option either to reatoration or mpair of the Property or the sums secured by this AtortKaQe. Unlees Lender and Borrower otherwise agree in writinK, :iny such applicatiun of proceeds to principal shall not extend or postpone thedue date of the monthly tnstallmE~nts referred tn in paraKr.+phs I and'l hrreof or chHnge thc amount of such installments. If under paragraph 18 herc~f the Property is acquired by I.ender, all right. tide and interest of Born~v~er in and to any insurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acqu~sition shall pass to l,ender to the extent of the aums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; I.ea~eholda; Condominums; Ylanned Unit Devetopmenta. Borrower shall keep the Property in good repair and shall not commi! waste ur permit impairment or deterioratiun oC the Property and ehall comply with the proviaiona of any lease if this MurtRage is on a leaRehold. If this llfortgage is on a unit in a condominium or a planned unit development, f3orrower ahall perfortn all of I3~rrower's obligations under the declaration or covenants creatinQor govern~ng the condominium or planned unit development, the bylaws ar~d regulations of the condominium or planned unit de~elopment, and conatituent documents. If e condominium or planned unit decelopment rider is executed by &~rruwer and recorded together with this Morlgage, the rnvenante and aqreements of ~uch rider shall I~e incurporated into:ind sh.~ll amrnd and supplement thecovenants and agreementsofthis Nlortqageasifthe rider were a part hereot ?_ Protection of I.ender's 3ecurity. If Borrower faila to perform the covenants and agreemente contained in thie Mortgege, or if any ac[ion or proceeding ie commenced which materially affecte Ixnder'e intereet in the Property, including, bUt not limitrd to, eminent domain, insolvency, oode enforcement, or arrangementa or proceedinge involving a bankrupt or decedent, then Lender at L.ender's option,upon notice to Borrower may make auch appearancee, dieburee euch aume and take euch action se ie neceseary to proteM Lender's intere~~ including, but not I~mited to, diebureement of reasonable attorney's feea and entry upon the Property to malce repairs. If Lender required mortgage ineurance ae a rnndition of making the loan secured by this Mortgage, 13orrower ahall pay the prnmiums required to maintain euch ineurance in effect until auch time as the requirement for auch inaurance tecminatea in accordance with Borrower's and Lende~i ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. My amounte diabureed by Lender perauant to this paragraph 7, with intereBt thereon, ahall become additiona) indebtedntsa of Borrower eecured by thie Mortgage. Unlese Borrower and I.ender agree to other tetme of payment, euch amounte shall be payable upon notice from Lender io Borrower reque6ting payment thereo[, and ehaU bear interest from the date of dieburaement at the rate payable trom time to time on outetanding principal under the Note unleae payment of intereet at such rate would be contrary to applicable law, in which event euch amounta ahall bear intereat at the higheat rate permisaible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. .. , , ; :# -~~ ~~~~351 P~~E1040