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` 9�_ it�3368
<br /> 2. Pavment of Indebtedness. Borrower shall pay when due the principal of, and the interest
<br /> on, the indebtedness evidenced by the Note, along with any prepayment or late charges, together with
<br /> any other sums that may be due under this Trust Deed. Unless applicable law provides otherwise, all
<br /> payments received�by Lender will be applied as follows:
<br /> (1) reasonable costs and expenses, including Trustee fees, incurred in exercising the power of sale; (2)
<br /> payment of taxes; (3) payment of insurance premiums, including mortgage insurance; (4) interest
<br /> payable on the note; (5) principal of the note; and (6) interest and principal on any future advances or
<br /> other indebtedness secured hereby.
<br /> 3. Escrow for Taxes, Premiums Assessments. At any time during the duration of this Trust
<br /> Deed, upon the election of the Lender, for the purpose of providing a fund for the payment of taxes,
<br /> special assessments and insurance premiums, Borrower shall deposit with Lender, on the dates that
<br /> monthly payments are due on the Note, an amount equal to one-twelfth of the taxes, assessments, ground
<br /> rents on the property, and hazard and mortgage insurance premiums next due (all as estimated by the
<br /> Lender). Said funds will be held by the Lender in a non-interest bearing account for the purposes set
<br /> forth above. If the amounts of these deposits are not sufficient to pay taxes, assessments and insurance
<br /> premiums as they become due, then Borrower shall upon request, pay Lender the amount necessary to
<br /> make up the deficiency.
<br /> 4. Char�es; Liens. Borrower shall pay all taxes, assessments and other charges, fines and
<br /> impositions attributable to the property which may attain a priority over this Trust Deed, and leasehold
<br /> payments or ground rents, if any, in the manner provided under Paragraph 3 hereof, or, if not paid in such
<br /> manner, by Borrower making payment, when due, directly to the payee thereo£ Borrower should
<br /> promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower
<br /> should make payments directly, Borrower shall promptly furnish to Lender receipts evidencing such
<br /> payments. Borrower should promptly discharge any lien which has priority over this Trust Deed;
<br /> provided, that Borrower shall not be required, at Lender's option, to discharge any such liens so long as
<br /> Borrower shall agree, in writing, to the payment of the obligation secured by such liens so long as
<br /> Borrower shall agree, in writing, to the payment of the obligation secured by such lien in a manner
<br /> acceptable to the Lender or shall in good faith contest such lien, or defend enforcement of such lien in
<br /> legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the property or
<br /> any party thereof.
<br /> 5. Insurance and Repairs.
<br /> A. Borrower shall maintain fire and extended coverage insurance insuring the
<br /> improvements and buildings constituting part of the Trust Estate for an amount no less
<br /> than the amount of all encumbrances upon the properties, or in such amounts and for
<br /> such periods as Lender may require. Such insurance policy or policies shall contain a
<br /> standard mortgage clause in favar of and in form acceptable to the Lender, and shall not
<br /> be cancelable, terminable or modifiable without thirty (30) days prior written notice to
<br /> Lender. Said insurance will be placed with a company or companies approved by the
<br /> Lender. Borrower shall deliver said policy or policies to the Lender.
<br /> B. Borrower shall promptly repair, maintain and replace Trust Estate or any part thereof so
<br /> that, except for ordinary wear and tear, the Trust Estate shall not deteriorate. The
<br /> Borrower shall not commit waste to the Trust Estate.
<br /> C. In the event of a loss, Borrower shall give prompt notice to the insurance carrier and the
<br /> Lender and file a proof of loss. If the Borrower is not otherwise in default, the Borrower
<br /> may elect to apply the insurance proceeds to repair or replace the damaged Property, if
<br /> economically feasible, and if the security of this Trust Deed would not be impaired. If
<br /> the Borrower is in default or elects not to repair or replace the damaged Property, or if
<br /> repair or replacement would not be economically feasible or the security of this Trust
<br /> Deed would be impaired, said determination to be made solely by Lender, then the
<br /> insurance proceeds shall be applied to the last maturity payments due on the Note with
<br /> the excess, if any, paid to the Borrower. Unless Lender and Borrower otherwise agree in
<br /> writing, any such application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthly installments referred to in Paragraphs 2 and 3 hereof, or change
<br /> the amount of such installments. Insurance proceeds for repair or replacement shall be
<br /> placed in escrow with the Lender and disbursed by Lender during or upon completion of
<br /> such repair or replacement. If the property is abandoned by Borrower, or if Borrower
<br /> fails to respond to Lender within thirty (30) days from the date notice is mailed by
<br /> Lender to Borrower that the insurance carrier offers to settle a claim for insurance
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