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Home My WebLink About0978 . ~ i~ ~ ~ ~ Korrvwer and l.ender covenant and agree se followe: 1. Payment of Principal end Interest. Borruwer shall promptly pay when due the principal of and intereat on the indebtednese evidenced by the Note, prepayment and late chargee ae pruvided in the Note, and the principal of and i~tereat on any Future Advnncee aecured hy this Martgage. 2. Funde tor Ta:es and Ineurance. Subjeci to applicable law or to a written wai~~er by Le~der, Borrower ahall pay to l.ender un the day munthly inatallments of principal and interest are ppyable under the Note, until the Nute ia paid in full, a sum (herein "F unda"1 equal to one ~welfth of the yearly taxes and aeaesamenta which may atta~n priority o~~er this Morlgage, nnd ground rents on the Yroperty, if any, plua one . twelfth of yearly premium inatallments for hazard insurance, plus one-twelfth of yearly premium installments for murtgage insurance, if any, ::11 aa reasonably e6timated initially and from time to tirr~e by l.ender on the basis of assessmenls and bills and relsonable estimates thereof. The Funde ahall be held in an instiiuti~n the deposits or accoants of which are insured or guaranteed by a Federal or State agency iinaluding I.ender if L.ender is euch an inetitution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rente. Lender may not charge for ao holding and applying the Funds, analyzing said account, or verify~ng and compiling said aseeasmenta and billa, unleae Lender paye Butrower interest on the Funds ~nd applicable law permita l.ender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shali be paid to Bormwer, and unlesa such agreement ie made or applicable law requirea such interest to be paid, Lender shall not be required to pay Borrower any intereat or earnings on the Funde. Lender ehap give to Borrower, without charge, an annual accounting of the Funda showing credits and debite to the i~ unda and the purpose for which each debit to the Funds ~•as made. The F unds are pledged as additional aecurity for the suma secured by thie 1lortgage. If the amount of the Funda held by L,ender, together with the future m~nthiy instaliments of Funds payable prior to the due datea of taxea, assesaments, inaurance premiums and ground rere~c, shail excred the amuunt required to pay said taxes, asaessments, insurance premiume and ground rents as they fall due, such exceas shali be, at EioiTOwer's option, either promptl}• repaid to Borrow•er or credited to Borrower on monthly inatallments of Funda. If the amount of the Funds held by Ixnder shall not be sufficient to pay laxes, assessments, insurance pmmiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30days from the date notice is mailed by Le~der to Borrower requestinK payment thereof. Upon ,~ayment in full of all auma secured by this Mortgage, Ixnder shall promptiy refund to E3orrower any funds held by l~ender. If under paragraph 18 hereof the Property is sold or the Property is otherrvise acquircd by I.ender, l~ender shali apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any F unds held by t.ender at the time of application as a credit against the sums secured by chis Mortgage. 3. Application ot Payments. CTnless appiicable _law provides othenvise, all payments received by l.ender under the Note and para:grapha 1 and 2 hereof ahall be applied by (xnder first in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof, then to intereat payabie on the Note, then to the pnncipal of the Note, and then to inlerest and principal on any Future Advancea. 4. Charges; Liene. Bormwer shall pay all taxes, assessments and other charges, fines.~nd impositions attributable to the Property which ma}• attain a priority o~•er this MortRaRe, and leasehoid payments or Kround rentc, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making pa>•ment, w•hen due, directly to the payee thereof. Borrower shall promptly fumish to [.ender ~ll notices of amounts due under this paragraph, and in the e~•ent Borruwer shall make payment directiy, Borruwer shall promptly furnish to (,ender receipta evidencing such payments. Eiorrower shall promptly dischargr any lien which has priority over this Alortgage; provided, that 8urrower shall not be required to discharge an}• such lien so IonK as Rurrow•er shall agree in writinQ to the payment of theobligation secured by .uch lien in a manner acceptable to l.ender. ur shall ~n Koud faith cuntest such lien by, ur defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or furfi•iture uf the F'ropert~• nr any part thereof. :i. Hazard lnsurance. Borrower shall keep the impm~•ements nuw• existing or hereafter erected on the Property insured against loe3s by fire, hazards included within the term "extended co~•eraQe," and such other hazards as I,ender may require and in such amounts and forsuch pen.ods as Lender may require; provided. that lxndt•r shall not require that the amuunt of such coveraRe exceed that amount of coverage required to pay the sums secureci by this M~rtK~+K~' The insurance carrier pruvidu~K the insuran~•~• .hall hi• i•huse•n h~~ IinrTOaver .ubject tu appru~•al by Lender; pro~•ided, that such approval , shall not be unreasonably withheld. All premiun~s ~~n in.urance pulicies shall br pa~d in the manne~ pruvided under paraKraph `L hereof or, if nct paid in such manner, by Burrower m~ikin~; pa~~ment, w•ht•n dur. ~iirt•~•th• t~~ the in.urance carrier. All insurance policies and renewals thereof ~hall t~ in form acceptable u> I,ender and shall include a standard mortgage clause in favor of and in form acceptable to l.ender. I.ender shall ha~ e the riKht tu huld the policies and renrw~als thereof, and Borrower shall promptly furnish to ixnder all renewal noiices and all receipts of paid premiums. In thr e~•ent uf loss, Borruw•er shall Kive prompt nutice to the insurance carrier and :.ender. Lender may make proof of loss if not made promptly b~• Rorruwer. ~ Unless t.ender and Eiorrow~er otherwise aKrre in w'riting, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is ec~~nomically feasible and the security of this btortgage is not thereby impaired. If such ! rrstoration or rnpair is not economically feasihle or if the srcurity of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the sums aecured by this Mortgage, w~th the exces~, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to E re~pond to I.ender within ~ days from the date nuticr is mailyd b}• I.ender tu Borrower that the insurance carrier offers to settle a claim for 6 ins~rance benefits, I.ender is authorized to collrct and apph• the insurancr pr«•erds at I.ender's option either to restoration or repair of the ~ Pmperty or the sums secured by this MortKaKe. ~ Unlesa Lender and Borrower otherwise aKree in writinK, any such application of proceeds to principal ahall not extend or postpone thedue ~ date of the monthly installments referred to in paraKraphs 1 and 2 hereuf or change the amount of auch insiallments. If under paragraph 18 hereof the Propeny ia acquired by (.ender, all riKht, title and interest of Borrower in and to any insurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acyuisition shall pass to l.ender to the extent of the sums secured by this ~ ~tortgage immediately prior to auch sale or acquisition. ~ 6. Preeervetion and Maintenance of Propert~•; Leaseholds; ('ondominuma; Planned Unit Developments. Borrowerahall keep ~ che Pruperty in good repair and shall not commit wa~te ur permit impairment or deterioration of the Property and ahaU comply with the provisiona of any lease if this MortgaRe is on a le~~sehold. If this MortRaRe is on a unit in a condominium or a planned unit development, ~ F;orrower ahal) perform all of Aorrower's obligatiuns under the declaratiun ur covenants rreatinKor govern?ng the condominium or planned ~ ~~nit development, the by-laws and reKulations ~~f the crmdominium or planned uni: development, and constituent documents. If a candominium or planned unit de~•elopment rider i~ executed by B~rrnwer and recorded together with this Mortgage, the co~enants and ~ aKreements of such rider shall be incorporated intu and shall amend .ind supplement the co~~enants and agreements of this Mortgageas if the nder were a part hereof. ~ r s 7. Protection of Lender'e Security. If Borrow•er fails to perform the covenanta and agreemente contained in this Mortgage, or if any ~ - action or proceeding ia commenced which materially affecte Lender'e intereat in the Property, including, but not limited to, eminent domain, I = insolvency, code enforcement, or arrangements or proceedinge invulving a bankrupt or decedent, then Lender at Lender'e option,upon ~ ~ notice to Borrower may make auch appearancee, disburae euch aume and take euch aciion ae ie neceeaary to protect Lender's intereet, ' including, but not limited to, diabursement of reaeonable attorney'e feea and entry upon the Property to make repaire. If Lender required ~ ~ mortgage ineurance ae a condition of making the loan secured by thie Mortgage. Bonower ahall pay the premiume required to maintain ~ euch ineurance in effect until euch time as the requirement for euch ineurance terminatee in accordance with Borrower'e and Lender'e ~ K-ritten agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiume in the manner provided under ~ paragraph 2 hereof. ~ Any amounte diebursed by Lender persuant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneae of ~ Horrower eecured by thie Mortgage. iJnlesa ~3orrower and Lender agree to other terme of payment, euch amounta shall be payable upon ~ noti~e from Lender to Borrower requesting payment thereof, and ehall bear intereat from the date of diabursemeni at the rate payable from ~ ~ time to time on outetanding principal under the Note uniess payment of interest at such rate would be contrary to applicable law, in which event euch amounte ehall t,ear intereat at the higheat rate permiseible under applicable taw. Nothing contained in thie paragraph 7, ahall ~ require Lender to incur any expense or tske any action hereunder. i e• s s~OK ~iJU PACf 9~ ~ ~ . ~ ~ ~ ~ . . ~g;=~~ - ~ : ~ ~