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<br />2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall pay to
<br />[ender on the day monthly payments of principal and interest are payable under the Note, untij the Note is paid in
<br />full, a sum (herein "Funds ") equal to one - twelfth of the yearly taxes and assessments (including condominium and
<br />planned unit development assessments, if any), which may attain priority over this Deed of Trust, and ground rents on
<br />the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly
<br />premium installments for mortgage insurance. if any, all as reasonably estimated initially and from time to time by
<br />Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make
<br />such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or
<br />deed of trust if such holder is an Institutional lender.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency (including. Lender if Lender is such an institution). Lender shall
<br />apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so
<br />holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills. unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree to writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to
<br />Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be
<br />requited to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an
<br />annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the 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
<br />to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay
<br />said taxes, assessments, insurance premiums and ground rents as they fail due, such excess shall be, at Borrower's
<br />option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount
<br />of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as
<br />they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as
<br />Lender may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by
<br />Under, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender,
<br />any Funds held by Lender at the time 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 payment eQetw�jdy py Lender under
<br />the Note and paragraphs l and 2 hereof shall be applied by Lender first in payment of art or''}}'t9`��p4yali1�6�1te(i by
<br />Borrower under paragraph 2 hereof. then to interest payable on the Note; and then to the prifffirdelf fhb NKts.. 4
<br />4. Prior Mortgagee 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,
<br />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes,
<br />assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this
<br />Deed fTr..(. and leasehold payments or ground rents, if any.
<br />5. Hawed Insurance. Borrower shall keep the improvements now existing or hereafter erected an the Property
<br />insured against loss by fire, hazards included within the term "extended coverage ", and such other hazards as Lender
<br />may require and 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.
<br />that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a farm
<br />acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender.
<br />Lender shall have the right to hold the politics and renewals thereof. subject to the terms of any mortgage, deed of trust
<br />or other security agreement with a 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
<br />proof of loss 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
<br />notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
<br />Property or to the sums secured by this Deed of Trust.
<br />6. Preservation and Maintenance of Property; Leaseholds Condomledutast Planned Unit Developments. Bor-
<br />rower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the
<br />Property and shall comply with the provisions of any (ease if this Deed of Trust is on a leasehold. If this Deed of Trust
<br />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 bylaws
<br />and regulations of the condominium or planned unit development, and constituent documents.
<br />7. Pmteetlon 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,
<br />then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including
<br />reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage
<br />insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to
<br />maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with
<br />Borrower's and lender's written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7. with interest thereon, at the Note rate, shall
<br />become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to
<br />other terms of payment. such amounts shall be payable upon notice from Lender to Borrower requesting payment
<br />thereof. Nothing contained in 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,
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential. in connection with
<br />any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are
<br />hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other securty agree.
<br />men; with a lien which 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 />,edification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest
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