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200205500
<br />sum (herein "Funds ") equal to onc- twelfth of the yeary taxes and assessments which may attain priority
<br />over this Deed of Trust, and ground rents on the Property, if any, plus one - twelfth of yearly premium
<br />installments for the insurance required to be maintained pursuant hereto, all as reasonably estimated
<br />initially and from time to time by Lender on the basis of assessments and bills or other reasonable estimates
<br />thereof.
<br />The Funds shall be held by Lender and commingled with the Lender's other funds and, further,
<br />Lender shall not be liable to Borrower for interest on such Funds_ Lender shall apply the Funds to pay said
<br />taxes, assessments, insurance premiums and ground rents_ The Funds are pledged as additional security for
<br />the sums secured by this Decd of 'I rust.
<br />If at any point during the tern hereof, the amount of the Funds hold by Lender shall exceed the
<br />amount required to pay the taxes, assessments, insurance premiums and ground rents as they fall due
<br />during the next consecutive twehe -month period, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on future monthly payments of Funds. If the amount
<br />of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums, and
<br />ground rents as they fall due during the next consecutive twelve-month period, Borrower shall pay to
<br />Lender any amount necessary to make up tie deficiency within thirty (30) days from the date notice is
<br />mailed by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deal of Trust, Lender shall promptly refund to
<br />Borrower any Funds held by Lcndcr. If under Paragraph 23 herein the Property is sold or the Property is
<br />otherwise acquired by Lender, Lender shall apply, no later thmh immedialoly prior to the sale of the
<br />Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit
<br />against the sums secured by this Deed of Trust.
<br />3. APPLICATION OF PAYMEN'T'S_ Unless applicable law provides otherwise, all pa)nnents
<br />occcood by Lender under the Note and Paragraphs I and 2 hereof shall be applied by Lender (i) first to
<br />interest payable on the Note, (ii) then in payment of amounts payable to Lender by Borrower under
<br />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, fines and
<br />impositions attributable to the Propertv which may attain a priority over this Deed of Trust, and leasehold
<br />payments or ground rents, if any, in the manner provided under Paragraph 2 hereof, or, if not paid in such
<br />manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly
<br />furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make
<br />payments directh', Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall pronrpty discharge any lien which has prority over this Deed of Trust, provided, that
<br />Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the
<br />payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith
<br />contest such lien by, or defend such enforcement of such lien in, legal proceedings which operate to prevent
<br />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 or
<br />hereafter erected on the Property insured against loss by fire, hazards included within the term "extended
<br />coverage ", and such other hazards as Lender may require, in an amount equal to the full replacement value
<br />of the Improvements (80% co- insurance clause pernhitted), as established by a competent insurance
<br />appraiser. Comprehensive general public liability insurance will also be obtained, with a company
<br />acceptable to the Lender, for an amount not less than $500,000.00 combined single limit. Business
<br />Interruption insurance for a twelve (12) month period, as established by a competent insurance appraiser,
<br />shall also be carried throughout the tens of the loan. The Property, it located in a I00 -year flood plain-
<br />shall also be covered, for the term of the loan, by flood insurance in an amount at least equal to the
<br />outstanding principal balance of the loan, or to maximum limit of coverage made available with respect to
<br />this particular type of property, whichever is less.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by
<br />Lender, provided that such approval shall not be unreasonably withheld. It is required that the insurance
<br />carrier hold a Policyholders Rating of at least B+ as set forth in the most current issue of Best's hey Rating
<br />Guide for property and casualty companies. All premiums on insurance policies shall be paid in the
<br />manner provided under Paragraph 2 hereof, or, if not paid in such manner, by Borrower making payment,
<br />whorl due, directly to the insurance carrier
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