|
200006114
<br />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, analyzing 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
<br />applicable law requires such interest to be said, Lender shall not be required to pay Borrower any interest or earnings on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the
<br />Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the
<br />sums secured by this Deed of Trust.
<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,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly
<br />repaid to Borrower or credited to Borrower 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 shaA 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 />under any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including
<br />Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other
<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 made 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 />that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's
<br />interest in the Property.
<br />9. Condemnation. 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 lien 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 />Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or
<br />otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy.
<br />F57201M0 (9/99) Page 2 of 4 l
<br />
|