|
<br />I
<br />
<br />88- 101953
<br />
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />
<br />1. P8vment of Principal and Interesl. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on
<br />any Future Advances secured by the Deed of Trust
<br />2. Fundi for TalCea8nd Insurance. Subject to applicable law or 10 a written waiver by Lender, Borrower shall pay to Lender
<br />on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein
<br />"Funds") equal to one-twelfth of the yearly taxes and assessmen~s which may attain priority over this Deed of Trust, and
<br />ground rents on the Property, if any, plus one-twelfth of xear1y premium installments for hazard insurance, plus one-twelfth of
<br />rearly premium installments for mortgage insurance, If any, all as reasonably estimated initially and from time to time by
<br />ender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed, by a Federal or state
<br />agency (including Lender if Lender is such an instilulion), Lender shaH apply the funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge lor so holding and applying the Funds, analyzing said account
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender ~o make such a charge. Borrower and Lender may agree In writing at the time of execution of this Deed of Trust
<br />Ihat interest on the Funds shall be paid to Borrower, and unless such agreement is made or applic!llbe law requires such
<br />interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds, Lender shall give to
<br />Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for
<br />which each debit 10 the Funds was made. The Funds are pledged as additional security for the sums secured by this Deed of
<br />Trust
<br />If the amount of the funds held by Lender, together with the luture monthly installments of Funds payable prior to the due
<br />dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, slJch excess shall be. at Borrower's option, either
<br />promptly reraid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by
<br />lender shal not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they I~II due, Borrower shall
<br />pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to
<br />Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed otTrust, Lender shall promptly refund to Borrower any Funds held by
<br />Lender. If under paragraph 18 hereolthe Property is sold or the Prope!1Y is otherwise acquired by Lender, Lender shall apply,
<br />no later than immediately prior to the sale 01 the Property or its acquisihon by Lender. and Funds held by Lender atthe time of
<br />application as a credit against the sums secured by this Deed of Trust
<br />3. Application 0' Payments. Unless applicable law provides otherwise. all payments received by Lender under the N>>te
<br />and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under
<br />paragraph 2 hereof, then to interesl payable on the Note. then to the principal ot the Note, and then to interest and principal on
<br />any Future Advances.
<br />4, Charg..; Uen.. Borrowers shall pay all taxes. assessments and other charges. fines and impositions attributable to the
<br />Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents. if any. in the manner
<br />provided under paragraph 2 hereof or, il 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 paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall ag ree in writing to the payment of the obligation secured by such
<br />lien in a manner acceptable to Lender. or shall in good faith contest such lien by. or defend enforcement of such lien in, legal
<br />proceedings which operate to prevent the enforcement of the lien or lorfeiture of the Property or any part ther6of.
<br />5, H.zard Insur.nce, Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire. hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and tor such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Deed of Trust
<br />This insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that
<br />such approval shall not be unreasonably withheld. All premiums on Insurance policies shall be paid In the manl'er provided
<br />under paragraph 2 hereof or. if not paid in such manner. by Borrower making payment, when due, directly to the insurance
<br />carrier.
<br />All insurance poliCies and renewals thereol shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. and
<br />Borrower shall promptly 'urnish to Lender all renewal notices and all receipts of paid premIums. In the event of loss. Borrower
<br />shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be appl ied to restoration or repair of the
<br />Property damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not
<br />thereby impaired. If such restoration or repair is not economically leasible or if the security of this Deed of Trust would be
<br />impaired, the insurance proceeds shall be applied to the sums secured by this Deed of Trust, with the excess. if any. paid to
<br />Borrower. 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 lor insurance benefits, Lender is
<br />authorized to collect and apply the insmance proceeds at Lender's option either to restoration or repair of the Property or to
<br />the sums secured by this Deed of Trust
<br />Unless Lender and Borrower otherwise agree in writing, any such application 01 proceeds to principal shall not extend or
<br />postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such
<br />; Installments. If under paragraph 18 hereot the Property is acquired by Lender, all right, title and interest of Borrower in and to
<br />any insurance policies and in and to the proceeds thereof resulting from dama~e to the Property priorto the sale or acquisition
<br />shall pass to Lender to the extent of the sums secured by this Deed of Trust Immediately prior to such sale or acqUisition.
<br />S, PrH.".tion and Maintenance of Propert"i leasehold.; CondominIum.; Planned Unit Developments. Borrower shall
<br />keep the Property in good repair and shall not commit waste or permit impairment of deterioration of the Property and shall
<br />comply with the provisions 01 any lease if this Deed 01 Trust is on a leasehold. If this Deed oITrust is on a unit in a condominium
<br />or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants
<br />creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or
<br />planned unit development and constituent documents. If a condominium or planned unit development rider is excuted by
<br />Borrower and recorded together with this Deed of Trust, the covenants and agreements of such flder shall be incorporated
<br />into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the rider were a part hereof.
<br />7. Protection of L......... Sec:uril".1I Borrower tails to pertorm the covenants and agreements contained in this Deed of
<br />Trust, or if any action or proceeding is commenced with materially affects Lender's interest in the Property. including but not
<br />limited to. emment domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent,
<br />then Lender at lender's option. upon notice to Borrower. may make such appearances. disburse such sums and take such
<br />action as is necessary to protect Lender's interest, including, but not limited to. disbursement of reasonable attorney's fees and
<br />ent~n the Property to make repairs. II lender required mortgage insurance as a condition of making the loan secured by
<br />the of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the
<br />requirement 'or such insurance terminates in accordance with Borrower'sand Lender's written agreement or applicalbe taw,
<br />Borrower shall pay the amount of all mortgage insurance permiums in the manner provided under paragraph 2 hereof,
<br />Any amounts disbursed by Lender pursuant to this paragraph 7. with interest thereon, shall become additional
<br />indGbledness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be pa"able upon notice from Lender to Borrower requesting payment hereof, and shall bear interest from the
<br />dateot disbursement at the rate payable from time to time on outstanding prinCipal under the Note unless payment 01 interest
<br />at such rate would be contrary to applicable law. in which event such amounts shall bear interest at the highest rate
<br />permissible under applicable law. Nothing contained in this paragraph 7 shall require Lender to in;:;ur any expense or take any
<br />action hereunder.
<br />.. Inspection. Lender may make or cause to be made reasonable entries upon and inspections 01 the Property, provided
<br />that Lender shall give Borrower notice prior to any such inspection spec.fying reasonable cause therefore related to Lender's
<br />interest in the Property.
<br />
<br />, \
<br />
|