|
1
<br />A
<br />applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall
<br />give to Borrower, without charge, an annual accounting of the Funds showing credits and dobits to the Funds and the purpose for which each
<br />debit to the 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 hoed by Lender, together with the future monthly installments of Funds payable prior to the due dam of taxes,
<br />assestiments, insurance premiums and ground rants, sail exceed the amount required to pay saW taxes, assatiments, insurance premiums and
<br />ground rants as they fail due, such excess shall be, at Bomawer's option, either promptly repaid to Borrower or credited to Borrower on monthly
<br />Installments' of Funds. If the amount of the Fund ii hold by Lenore shall not be sufficient to pay taxes, _ ametuments, insurance premiums and
<br />ground routs as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice
<br />is mailed by Lander to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust, lender shall promptly refund to Borrower any Funds held by Lender. If
<br />under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall any, no later then immediately
<br />prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums
<br />secured by this Deed of Trust.
<br />3. Application of Psymosta. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1
<br />and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest
<br />payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
<br />4. Cargos; Limm. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
<br />may attain a priority over this Dad of Trust, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof
<br />or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof, Borrower shall promptly furnish to
<br />Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly
<br />furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which her priority over this Deed of Trust;
<br />provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the
<br />obligation secured by such Gen in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien
<br />in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any put thereof.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire,
<br />hazards included within the term "extended coverage ", and such other hazards as Lender may require and in such amounts and for such periods
<br />as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay
<br />the sums secured by this Deed of Trust.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval
<br />shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not
<br />paid in such manner, by Borrower snaking payment, when due, directly to the insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
<br />and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
<br />Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />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 applied to restoration or repair of the Property
<br />damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not thereby impaired. If such
<br />restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds shall be
<br />applied to the sums sowed by this Deed of Trust, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if
<br />Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to
<br />settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Ladder's option either to restoration or
<br />repair of the Property or to the sums secured by this Dad of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shag not extend or postpone the due
<br />date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such instalments. If under paragraph 18
<br />hereof the Property is acquired by Lander, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
<br />thereof resulting from damage to the Property prior to the sale or acquisition shall pass to tender to the extent of the sums secured by this Deed
<br />of Trust immediately prior to such sale or acquisition.
<br />6. Preservation and Nishoauger of Property; Leaseholds; Condom; Planed Uisk Devdapamb. Borrower shall keep the
<br />Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions
<br />of any lease if this Dad of Tract is on a leasehold. 1 f this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower
<br />shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit
<br />development, the by -laws and regulations of the condominium or planned unit deve!opment, and constituent documents. If a condominium or
<br />planned unit development rider is executed by Borrower and recorded together with this Deed of Trust, the covenants and agreansstss of such
<br />rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the rid= were a part
<br />hereof.
<br />7,, Protection of gender's Sorm". If Borrower tails to perform the covenants and agreements contained in this Deed of Trust, or it any
<br />action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain,
<br />issotveaxy, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, ;hen Lender at Lender's option, upon notice
<br />to Borrower. may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including. but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance
<br />as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect
<br />until such time w the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable
<br />law. Borrower shad pay the amount of all mortgage insurance premiums 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 indebtedness of Borrower
<br />sociared by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from
<br />Lender to Borrower rOgUali ing payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on
<br />outstanding principal under the Noe unless payment of interest at such rate would be contrary to applicable law, in which event such amounts
<br />bear interest at the rate permissible under applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any
<br />expense or toles any action hereunder.
<br />IL taspoosism. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall
<br />give Borrower Mice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property.
<br />9. a .line proceeds of any award or claim for damages, direct or consequential, in connexion with any condemnation err
<br />other taking of the Property, or part thereof. or for conveyance in lieu of condemnation. are hereby assigned and shall be paid to Lender,
<br />in 6fte "C ut of a total taking of the Property, the proceeds shall be applied to i he sums secured by i his I ived of Trust, with the excess, it aaty,
<br />pa#d Vsr likwrowff, In the event of a partial taking of the Property, unless Borrower and tender otherwise agree in writing, there shall be apt Itch
<br />,o tYr, sums sfture3 by mvt IXed cif "trust stash ptdlidxdicrn of the prsXe s &s u, equal to lotus t on arhloi ttie smolt; ,a the 4um, ,^.:vrctl
<br />
|