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Home My WebLink About0932 1 ' ' I;' , . , * i: 3 : _ . ~IN[FORM COVENANT$. Bonower and I.ender covcnant and ag~a as foliowe: l. ~ymeat ot Pr~ucipd ~ lntcnst. Borrowe~ shall promp~ly ~ay when duc tha principal of and intcrest or. thc iadebtedncu ovidenced by thc Note, prepayment an~ In!c cherRos as provitkd in the Note, and the principal of ~?nd ints~est on any Futuro Advanccs secund by tSiis Mortgagc. . Z. F~d~ ~o~ T~a snci I~wrnace. Subject to applicablc lew or to a written w~ive~ by Lender~ Borrower shall pay -i - ~ to I.ender on thc day monthfy inst~llments of principal and intcrest ar~ paypble unda[ the Note, until the Note is paid in full, a aum (herein "Funds") cqual to, onatw~lfth of thc yearly taxcs and assessments which may attai~ pri~rity over this Mortgage, and ground renta o~7 tht Property~ if a~y~ plus one-tweltth of yearly premium instaltments for hazard insuranca, plus ac~-twelfth of yearly premium instaliments for morigage insurance, if eny~ all as reasonably estimated initially and from time ta tin~e hy Lender on the basis of assessments and bills~and reasonable estimates thertof. ' The Funds shall bo held in an institution the deposits or accounts of which are insured or guarant~d by a Federal or ~tatc a~cncy tincluding I.tnder if Lender is such an institution). Lender shall apply the Funds to pay said taxes~ assessmEnts, ' insurance ptemiums and ground rents. Lender may not charge for so hoiding and ~pplying the Funds. anal~~ziag sAid account, ~ or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applics~ble law permits Lentler to mske such a charge. Borrower and L+znder may agree in writing at the time of execution of th~s Mortgage that interat an the Funds shall be paid to Borrower~ and unless such agroermnt is made or applicsbt~ law requires such intertst to be paid, L.endtr shali not be required ta pay Borrower any interest or earnings on the Funds. Lender shall give to Borrovrer~ without charge, an annual accounting of tht Funds showing credits and debits to tht Funds and the purpose for which each debit to the Funds Nas made. The Funds are pledged as additional socurity for 2he sums secured = by this Mortga~e. ~ . ~ ~ If the amount of the Funds held by Lender, together with the futur~ monthly instaliments of Funds payable prior to thc due dates of taxts~ assessmenls, insurancti premiums and ground rents, shall excttd tha amount rcquired to pay said tauts, sasessments, ir.sura~ce premiums and groured rents as they fall due, such excess shall bz~ at Borrc;we~ s option, tither . promptly repaid to Borrower or credittd to Borrower on monthly instaliments of Funds. If the amount of the Funds ~ - held by Lender shall not be suificient to pay taxes, assessments, insurance premiums and ground rents 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 I.eader to Borrower requesting payment thereof. ~ . Upon payment in full of all ~ums secured b~• this Mortgage, !_ender shall pramptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender . shalt apply, no later than immediately prior to the sale of the property or its acquisition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Appucatbn of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereaf shall be ~pplied by I.ender first in payment of amounts payable to Lender by Borrower under paragrapF~ 2 hereof, then to interest payable on the Note, then to the principal of the Note, and. ihen to inCeiest and - principal on any Future Advances. _ 4. Cbarges; Lkas. Borrow~er shall pay all taxes, assessments and other charges, fines and impositions attributable to She Property which may attain a priority over this Mortga4e, 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, when due, ditectly to tht ~ payee thereof. Bort~ow~r shall promplly furnish to Lender all notices of amounts due under this paragraph, and in the event ~ BorroH~er shait make payment directty. Borrow•er shall promptly fumish to Lender receipts evidencing such payments. ~ Borrower shall promptly dEscharge any lien which has priority over this Mortgage; provided, ihat Borrower shall not be required to discharge any such lien so long as -Borrower shall agree in writing te the?payment of the obligation secured by i - such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or dsfend enforcement af such lian in, legal proceedings which operate to prevent ihe enfarcement of the lien or forfeit~are of the Propert~+ or any_ part thereof. ~ ' ~ S. Hazard Insurance. Borrower shall keep the improvements noH~ eYisting or hereafter erected on the Property insured ~ _ against loss by fire, haaaras included within the teRn "~xtende~ coverage and st~ch other hazards as Lender may rrquire ~ and in such amounts and for such peri~ds as Lender may require, provided, that Lender shall not require that the amouni af , such coverage exceed that amount of coverage required ta pay the sums secured by this Mortgage: ~ . The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provi~~d. that such approval shaft not be unrea~onably withheld. All premiums on insurance polieies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the insurance carrier. . All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a stand~rd mortgage clause in favor ~f and in form acceptable to Lender. Lznder shall have the ~ight to hold the uolicies and renewals thEreof. and Borrower shali promptly furn:sh to Lendec all renewal no~ices and all receipts of paid premiums. In the event of 14ss, Borrower shall give prar~pt.notice to the insurance carr:er and Lender. Lender may make proof of loss if not made promptly ~ by Borrower. : ~ Unless Lcnier and Borrower ~therwise agree in writing, insurance proceeds shalt be applied to restoration or repair of ~ the Property damaged, provided such restoration or repair is economically feasible and the s°,curity of this Mortgage is not thersby impairsd. If such restoration or reFair is not economically feasible or if the securiry of this Mortgage wo~ld ~ be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid - to Borrower. If the greperty is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date nuiice is mailed by L,ender to Borroa~er that the insurance carrier otiers to settle a claim for~insurance benefits, I.ender is authorized to collect and apply the insurance proceeds at Lender's optia~ either to restoration or repair uf the Property ~ or to the sums secured by this Mortgage. Unless L.ender and Borrower otherwise agrec in writmg, any such application of proceeds to principal shall not extend or postpone the due date of the monthly instaliments referreil to in paragraphs 1 and 2 hereof or change the amou~t of such instal~ments. ~f under paragraph 18 hereof the Prop~riy is acquired.by L.ender. all right, tiile and interest of Bonower _ in and to any insurance policies and in and to the proceeds thereof resulting from damzge to the Prope»y prior to the sale or acquisition shal! pass to Lender to the exient af the sums secured by this Mottgage immediately prior ta such sale or _ acquisition. . ' 6. Preservat~n sod blatntens~nce of Properly; Leaseholds; Condominiums; Ptaaaed lJ~ft Developmenfs. B~rrower shalt keep the Property in good repair and shall nat commit waste or permit impaircnent or deterioration of ttse Property aad shall comply with the provisions of any leasC if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condomi~ium or a planned-unit development, Borrower shall perform all of Borrower's obligations under the declaration E:- ~ or covenants creating or governing ths condominium or planned unit d~velopment, the by-laws and regulations of tht ~ condominium or plann~d unit development, and constituNnt documents. If a condominium or planned unit deveiopment { rider is ezetuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such ri:kr l ~ - ~hall be incorporated into and shal! amend and supplement the covenants and'agretments of this Mortgage as if the rider ( ~ were a part hereof. ~ 7. Frotcct~on ot Lende~s Securitp. If Borrower fails tc per[orm the covenants and agreements contained in this Mortgage, or if ar~y action or procetding is commenced whi~h materially affects Lender's interest in the Property. a including, but not limited to, Gmir.ent domain, insolvency, sode enforcement, or arrangements or proceedings involving a _ bankrupt or decedent, then Lender at Lcnder's option, upon notice ta Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disburatment of rea~onabls attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan seeured by this Mortgage, Borrawer shall pay the Qremiums requirei to maintain such insurance in effect until such time as the nquirement for such insurance terminates in accordxnce with Borrowtc's and . . ~ ~ . - ~ ~ ~~~2 ~~~E ~32 ~ ~ . -