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<br />If Borrower pays l<'unds to Lender,f!Z -;:;"nds Sh~ ~ ~e~ ~ ~ institulion the deposits or accounts of which
<br />are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution), Lender
<br />shall apply the l<'unds to pay said laxes, assessments, insurance premiums and ground rents. Lender may not charge
<br />for so holding and applying the l<'unds, analyzing said account or verifying and compiling said assessments and bills,
<br />unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Bor-
<br />rower and Lender may agree in writing at the time of execution of this Deed of Trust that interest on the Funds
<br />shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower,
<br />without charge, an annual accounting of the Funds showing credits and debits to the l<unds and the purpose for
<br />which each debit to the Funds was made. The Funds are pledged as additional security for I.}>' . "..'S secured by this
<br />Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly inslallments of Funds payable pri-
<br />or to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required
<br />to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bor-
<br />rower's option, either promptly repaid to Borrower or cr~edited to Borrower on monthly installment of Funds. If the
<br />amount of the FUnds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and
<br />ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the dificiency in one
<br />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
<br />Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by
<br />Lender, 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 payments received by Lender un-
<br />der the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to
<br />Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the
<br />Note.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obliga-
<br />tions under any mortgage, deen of Imst Of other security agreement with a lien which has priority over this Deed of
<br />Trust, including Borrower's covenants to make payments when due. Borrower shall payor cause _to be paid all
<br />laxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority
<br />over this Deed of Trust, and leasehold payments or ground rents, if any.
<br />5. Hazard Insurance. Borrower shall keep Ihe improvemenls now existing or hereafter erected on the Prop-
<br />erty insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as
<br />Lender 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 10 approval by Lender; pro-
<br />vided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in
<br />a form acceptable 10 Lender and shall include a slandard mortgage clause in favor of and in a form acceplab1e to
<br />Lender. Lender shall have the right 10 hold the policies and renewals Ihereof, subject to Ihe terms of any mortgage,
<br />deed of trust or other security agreement with a lien which has priority over Ihis 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 Ihe Property is abandoned by Borrower or if Borrower fails to respond 10 Lender wilhin 30 days from the
<br />date notice is mailed by Lender to !30rrowerlhat Ihe insurance carrier offers to settle a claim for insurance benefits,
<br />Lpnder is authorized to collect and apply Ihe insurance proceeds at Lender's oplion either to resloralion or repair
<br />of Ihe Property or to Ihe sums secured by this Deed of Trusl.
<br />6. Preservation and MaintenaIlce of Property; Leaseholds; Condominiums; Planned Unit. Develop-
<br />ments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deleri,
<br />oration of the Property and shall comply \vith Ihe provisions of any lease if Ihis Deed 01 Trust is on a leasehold. If
<br />this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower shall perform all of Bor-
<br />rower's obligations under the declaration or covenants creating or governing the condominium or planned unit de-
<br />velopment, the by-laws and regulations of Ihe condominium or planned unit. development, and constituent docu-
<br />ments.
<br />7. Pl'otection of Lender's Security. If Borrower fails to perform the covenants and agreement.s conlained in
<br />this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in Ihe
<br />Propert.y, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums, including reasonable at.torneys' fees, and lake such action as is necessary to protect Lender's interest. If
<br />Lender required mortgage insurance as a condit.ion of making Ihe loan secured by this Deed of Trust., Borrower
<br />shall pay the premiums required to maintain such insurance in effee\. until such time as the requirement. for such in-
<br />surance terminates in accordance wilh Borrower's and Lender's written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to t.his paragraph 7, with interest Ihereon, at the Note rate, sh,111
<br />become additional indebtedness of Borrower secured by Ihis Deed of Trust. Unless Borrower and Lender agree t.o
<br />other terms of payment, such amounts shall be payable ur:>n notice from Lender to Borrower requesting payment
<br />Ihereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereun-
<br />der.
<br />8. Inspection. Lender may make, or cause to be made, reasonable entries upon and inspections of Property,
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause Iherefor
<br />related to Lender's interest in Ihe Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direcl or consequenlial, in conneclion
<br />with any condemnation or other taking of the Property, or part Ihereof, or for conveyance in lieu of condemnation,
<br />are hereby assigned and shall be paid to Lender, subject 10 the terms of uny morlgage, deed of Imst or othpr securi.
<br />ty agreement with a lien which has priority over this Deed of Trust.
<br />10. Borrowel" Not Released; Forbearance By Lender Not I!. Waivel'. Exlension of t he time for payment or
<br />modification of amortization of the sums secured by Ihis Deed of Trust granled by Lender 10 any successor in inter-
<br />est of Borrower shall not operate to release, in any manner, Ihe liabilily of the original Horrower and BorrO\\'pr's suc"
<br />cessors in interest. Lender shall not be required to commence proceedings llgllinsl such successor or refuse to ex,
<br />lend lime for payment or otherwise modify nmorlization of Ihe sums secured by Ihis Deed of Trust by re:lSOIl of :lny
<br />demand IIlnde by the original Borrower and Borrower's successors in inleresl.' All\' forbc:lranc'e by I'~endl'r in l'~:e~.
<br />dsing any right or remedy hereunder, or olherwise afforded by applicnble In\\', sh;11I not hl' n w'li\:cr of or )lrl''''ndt'
<br />the exercise of any such right or remedy. J .' .
<br />11. Successors and Assigns Bound: ,Joint IlIld Sevel'al Liahility; Co-signet's. The ('O\'(,I);IlIls :1',,\ n~rp(',
<br />onenls herein conlained .hall bind, /lnd the righls hereunder shnll inure 10, th.. r"spl'''II\''' '\l('Cl'ssnrs llnd llSSI~ns of
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