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If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured
<br /> or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to
<br /> pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the
<br /> Funds, nalyzing said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on
<br /> the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of �
<br /> execution of this Deed of Trust that interest on the Funds shall be paid to Borrower, and unless such agreement is made or Q
<br /> applicable law requires such interest to be said, Lender shall not be required to pay Borrower any interest or earnings on the O
<br /> Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the O
<br /> Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the Q
<br /> sums secured by this Deed of Trust. O
<br /> If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due �.�,
<br /> dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, r
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly w
<br /> repaid to Borrower or credited to Borower on monthly installments of Funds. If the amount of the Funds held by Lender shall
<br /> not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender
<br /> any amount necessary to make up the deficiency in one or more payments as Lender may require.
<br /> Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds held
<br /> by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply,
<br /> no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br /> application as a credit against the sums secured by this Deed of Trust.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note.
<br /> 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations
<br /> ornde�edeyc�gs,tdee�r*4aef�mrt�Nv�ersedueityBsa�ree�eierghalittp� lien ash�tba�eQ¢aNYativ�xElsi�a�seds�kr"tia�s�ndh�th�ng
<br /> charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold
<br /> payments or ground rents, if any.
<br /> 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and
<br /> in such amounts and for such periods as Lender may require.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that
<br /> such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to
<br /> Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right
<br /> to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a
<br /> lien which has priority over this Deed of Trust.
<br /> In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss
<br /> if not mae promptly by Borrower.
<br /> If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is
<br /> mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to
<br /> collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums
<br /> secured by this Deed of Trust.
<br /> 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit
<br /> Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or
<br /> deterioration of the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this
<br /> Deed of Trust is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations
<br /> under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and
<br /> regulations of the condominium or planned unit development, and constituent documents.
<br /> 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br /> Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then
<br /> Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable
<br /> attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage insurance as a
<br /> condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such
<br /> insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's
<br /> written agreement or applicable law.
<br /> Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate, shall become
<br /> additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of
<br /> payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in
<br /> this paragraph 7 shall require Lender to incur any expense or take any action hereunder.
<br /> 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided
<br /> specifying r�ohebf�eros�6m� �i�elBorrele�sdnhiideerpd'arfsto any such
<br /> interest in the Property.
<br /> 9. C011deIY1118t1On. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br /> condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned
<br /> and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a tien which
<br /> has priority over this Deed of Trust.
<br /> 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest of
<br /> Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower`s successors in interest.
<br /> Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or
<br /> otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original
<br /> Borro+,ver and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or
<br /> otherwise afforded by applicable law, shll not be a waiver of or preclude the exercise of any such right or remedy.
<br /> F5720.LMG (9/99) Page 2 of 4 � /�,
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