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Home My WebLink About0965 ~ '•v Norrow~er aod Lender coven~nt a~d a~»t a~ (dbw~: 1. Paya~ent of P~iacipal and tatere~t. BoctowK shall Peomptly paY wMn dw tht principal of and inttn~t on the indebted~ew evidenced by the Note, prepayment and late chu~ u pmvided ie the Note, and th~ principal otand ietereat on any F~uture Advancw ~scueed by thi~ M~a~e. 2. F1nds tot Ta:e~ and In~urnnce. Subject to eppticable law or W~ written waiver by l.ender, Borrawer shaU pay to Lende~ o~ the day monthly i~stallmenta ot principal and intere~t ue payabk u~der the Note, u~til the Note is paid in tull, ~ sam (herein "~nds"1 equs! 10 one twelRh of the yearly wcer and aa~ewmenN which mpy attain priority over thu Mortia~e, and ~round renta on the Pwpevty, if a~y, plw on~ twrlfth oi yeul y premium installments tor hwrd inaunnce, plw one-twelRh of yearly premium inatallmenb [or mort~ege insurance, if any, wll as reasonably estimated initial{y and trom lime to time by I.ender on the basia of as~euments and bills and reasonable estimatea thereot. The Funds shall be held in an institution the depwita or accounts ot which are insured o~ guaranteed by s Federal or Siate agency ~includin~ Lender if l.ender is such aa inititution). Lender shall apply the Ftinds to pay said taxes. as~esaments, insurance pnmiums and ground rents. Lender may not char~e ior w holdin~ and applying the Ftinds, analysin~ said accnunt, or verifying end compiling uid asaeeamenta and bills, unlees Gender pays Bortowe~ interest on the Ftinda and applicable law permits Lender to make euch a cha.se. Borrower and Lender may egree in writing at the time of e:ecution of thia Mortgage that intereat on the Fti?nde ahalt be paid eo Borrower, and unless euch sgreement is made or applicable law requina such interest to be paid, Le~der shall not be required to pay Borrower any interest or earnings on the ~Lnd~. Lender ahati give to Borrowrr, withont charge, an annual accounting of the Funda ahowing crediLs and debits to the Funds and the purpoae for which each debit to the Funds was made.'R?e Funda are p4edged as additional secutity forthe sums aecured by this Mortgege. If the amount of the Ftinds held by Lender, together with the future monthly inatallments olFunds payable prior to the duedatee of taxes, esaeasmenta, inawance premiums and gmund rents, shall excred tfie amount required to pay aaid taxes, aesessmenta, inaurance premiuma and ground rente ae they tall due, auch e:cess shall be, at Boitowei a oplion, either pmmptl}• tepaid to Borrower or credited to Borroweron monthly instellments ot ~nda. If the amount of the Funds held by L.ender ahaU not be auEficient w pay taxes, aasesamente, inaurance prnmiums and ground nnts as they fall due, Borrower ahall pey to Lender any amount neceasary to make up the deficiency within 30 days from the date notice ia mailed by L.endeT to Borrower requeating payment thereoi. Upon payment in full of all nums eecured by this Mortgage, Lender shall promptly refu~d to Bocrower any funds held by l.ender. If under paragraph 18 hereof tlie Property ia sold or the Property is otherwise acquired by l.ender, I.ender shall apply, no laterthan immediately prior to the sale cf the Property or ita acquisition by l.ender, any Funds held by Lender at the time of application as a credit against the suma secured by thie Mortgage. 3. Application of Paymente. Unleas applicable law provides otherwise, all paymenta received by Lende~ under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to I.ender by Borrower under paragreph 2 hereof, then to interest payable on the Note, tfien to the p~incipal o( the Note, and then to interest and principal on any Future Advancea. i. Charges; Liena. F3otrower shall pay all taxes, assessments and other rharges, fines and impositions attributable to the Property which m:?y attain a priorily over this Mortgage, and leasehuld payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Bortower making payment, when due, directly to the payee thereot Borrowershall promptly furnish to Lender <~l1 notices o[ amounts due under this paragraph, and in the event Borrow•er shall make payment directly, Borrower shall promptly turnish to I.ender receipts evidencing such payments. Rorrower shall promptly discha~gr any lien which has priority o~er this Mortgage; provided, that Horrower ahall not be required to discharge any such lien so lon~c as k~rrowershall agree in writing t~ the payment of theobligation secured by ~urh lien in a manner acceptable to Ixnder, or shall in Rood faith contect such lien b~, ordefend enforcement ofsuch lien in, legal proceedings hich operate to prevent the enforcement of the tien or furfeiture uf the Property ar any part thereof. 5. Hazard tnsurance. Borrower shall keep the impruvemcnts now existinK or hereafter erected on the Property insured against loas by fi re, hazards included within the term "extended covera(te." and such other hazards as I.ender may require and in such amounts and for such periods as Lender may require: provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage re~uired to pay the sums secureci hy this MortRaQe. The insurance carrier providinK lhe insurance• shall t?e ch~~sen by Knrroveer subjecl tn approval by Ixnder; pmvided, that such approval ~t~at{ not be unreasonably witfiheld. Atl premiums on ~mur:inre p~~licies shall be paid in the manner pruvided under paragraph 'l hereof or, i[ , nut paid in such manner, by E;orrower making payment. when due, dirc~•th~ to the incurance carrier. All insurance policies and renewals thereof shall t?r in form acceptable to I.enderand ahall include a standard mortgageclausein favorof a nd in torm acceptable to Lender. I.ender shall ha~•e the nKht tn hold the pnlicies and renewals thereof, and Borrower shall promptly furniah to i,rnder att renewal notices and ali receip~~ of paid premiums. In the event of loss, 8orn~wer shail give prompt notice to the insurance carrier ~ ~+nd l.ender. Lender may make proof of loss if not made promptly by Borrower. i Unleas Lender and I3orrower othenvise agree in v?riting, insurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided such resu~ration or rt~pair is rcunumic~lly [easible and the srcurity of this Mortgage is not thereby impaired. If such t restvration or rnpair is not econom+cally feasible or it the secarity of tfiis Mortgage wonld be i:npaired, the insurance proceedsshaU be applied a~ the sums aecured by this Mortgage, with the excess. ~f any, paid to Eiorrower. [f the Property is abandoned by Borrower, or if Rarrower tails to re~pond to l.ender within 30 days from the date notice is mailed by l.ender to Borrower that the ineurance carrier oNers W settle a claim for ~ ~nsurance benefita, [.ender is authorized to coliect and apply the insurance proceeds at l.ender's option either to restoration or repair of the ~ Property or the sums secured by this Moirtgage. ~ ~ Unlese Lender and Borrower otherwise agree in writinK, any such application of proceeds to principal ehall not extend or postpone lhedue ! ~ date of the monthly installments referred to in paraQraphs 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 ~ ~ hereot the Property is acquired by [xnder, a1{ right, ti11e and interest of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof resulting from damage to Property prior to the sale or acqu~sition shall pass to Lender to the extent of the sums secured by tfiie blortgage immediately prior to auch sale or acquisition. 6. Preeervation and Msintenanceof Property: Leaseholda; Condominume; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the'Property and shali comply with the pro~~isions of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ft~~rrower shall perform all af Borrower's obligations under the declaration or covenanta creatinRor governing the rnndominium or planned ~ unit development, the by-laws and regulat~ons of the condominium or planned unit development, and conatituent documenta. If a cc~ndumtnium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the rnvenants and ~ :iKr~ementsofsuchridershallbesncorporatedintoandshallamendandsupplementthecovenantsandagreementsofthiaMortgageasifthe € nder were a part hereof. ~ 7. Protection of I.ender's 3ecurity. If Borrower faile to perform the rnvenants and agreements contained in thie Mortgage, or if any ~ act~on or praceeding ie commenced which materially effecta Ixnder'e intereat in the Property, including, but not limited to, eminent domain, ineolvency, oode enforament, or anangemente or proceedinge involving a benkrupt or decedent, then Lender at Lendei s option,upon ~ notice w Borrower mey make ~uch appearances, dieburse euch eums and taice such action as is necessary to protect I.ender's intere~t, ~ncluding, but not limited to, diebursement of reasonable attorney'a fees and entry upon the Property to ma1~e repain. If Lender required mortgage insurance ae a condition of making the loan secured by thie Mortgege. Borrower ahall pay the premiums required to maintain such ineurance in effect until euch time as the requirement for auch ineurance t~etminates in accordance with Borrower's and Lender's written agreement or appliceble Law. Borrower ehall pey the amount of aq mottgage ineurance premiums in the manner provided under peragraph 2 hereof. Any amounts diabureed by L.ender pereuant to thie paragiraph 7, with intereet thereon, ahall become additional indebtedneee of Horrower serured by thie Mortgage• Unlese Borrower and Lender agree to other terma of payment, euch amounts shall be payable upon 5 notice from Lender to Borrower requesdng payment thereof, and ahall bear interest from the date of diebursement at the rate payable ttom time to time on outatanding principal pAder the Note unleae payment of interest at such rate would be contrary W spplicable law, in which - event auch amounte shall bear interest at the higheat rate permissible under applicable law. Nothing contained in this paragraph shall ~ require Lender to incur any e:pense or take any action hereunder. . ' • 't ~ ~ ~17 ~~~~,F 964 . ~~.F~~~~d ~ ~~~~'~41Q P~~~E 327 , . ! ~ < : . _ - . • - ~i ~ _