|
`� �3 i �'7758
<br /> Borrower and Lender covenant and agree as follows:
<br /> 1. PAYMENT OF PRINCIPAL AND INTEREST. Borrower shall promptly pay
<br /> when due the Principal of and Interest on the indebtedness evidenced by the Note, and all
<br /> prepayment and late charges as provided in the Note or in this Deed of Trust.
<br /> 2. FUNDS FOR TAXES AND INSURANCE. Subject to applicable law or to a written
<br /> waiver by Lender, Borrower shall pay to Lender on each Due Date under the Note, until the Note
<br /> is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly t�es and assessments
<br /> which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus
<br /> one-twelfth of yearly premium installments for the insurance required to be maintained pursuant
<br /> hereto, all as reasonably estimated initially and from time to time by Lender on the basis of
<br /> assessments and bills or other reasonable estimates thereof.
<br /> The Funds shall be held by Lender and commingled with the Lender's other funds and,
<br /> further, Lender shall not be liable to Borrower for interest on such Funds. Lender shall apply the
<br /> Funds to pay said taxzs, assessments, insurance premiums and ground rents. The Funds are
<br /> pledged as additional security for the sums secured by this Deed of Trust.
<br /> If at any point during the term hereof, the amount of the Funds held by Lender shall
<br /> exceed the amount required to pay the t�es, assessments, insurance premiums and ground rents
<br /> as they fall due during the next consecutive twelve-month period, such excess shall be, at
<br /> Borrower's option, either promptly repaid to Borrower or credited to Borrower on future monthly
<br /> payments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay
<br /> taxes, assessments, insurance premiums, and ground rents as they fall due during the next
<br /> consecutive twelve-month period, Borrower shall pay to Lender any amount necessary to make
<br /> up the deficiency within thirty (30) days from the date notice is mailed by Lender to Borrower
<br /> requesting payment thereo£
<br /> Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly
<br /> refund to Borrower any Funds held by Lender. If under Paragraph 23 herein the Property is sold
<br /> or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately
<br /> prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time
<br /> of application as a credit against the sums secured by this Deed of Trust.
<br /> 3. APPLICATION OF PAYMENTS. Unless applicable law provides otherwise, all
<br /> payments received by Lender under the Note and Paragraphs 1 and 2 hereof shall be applied by
<br /> Lender(i) first to interest payable on the Note, (ii) then in payment of amounts payable to Lender
<br /> by Borrower under Paragraph 2 hereof, and(iii)then to the Principal of the Note.
<br /> 4. CHARGES; LIENS. Borrower shall pay all taxes, assessments and other charges,
<br /> fines and impositions attributable to the Property which may attain a priority over this Deed of
<br /> Trust, and leasehold payments or ground rents, if any, in the manner provided under Paragraph 2
<br /> hereof, or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this
<br /> paragraph, and in the event Borrower shall make payments directly, Borrower shall promptly
<br /> furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any
<br /> lien which has priority over this Deed of Trust; provided, that Borrower shall not be required to
<br /> discharge any such lien so long as Borrower shall agree in writing to the payment of the
<br /> obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest
<br /> such lien by, or defend such enforcement of such lien in, legal proceedings which operate to
<br /> prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. INSURANCE COVERAGES. Borrower shall keep the improvements now existing
<br /> or hereafter erected on the Property insured against loss by fire, hazards included within the term
<br /> "extended coverage", and such other hazards as Lender may require, in an amount equal to the
<br /> full replacement value of the improvements (80% co-insurance clause permitted), as established
<br /> by a competent insurance appraiser. Comprehensive general public liability insurance will also
<br /> 2
<br />
|