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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
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<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness
<br />evidenced by the Note, including any variations resulting from changes in the contract rate, and other charges as provided
<br />in the Note.
<br />2. Fumb for Taxes and Insurance. Subject to applicable law or waiver by Lender, Borrower shall pay to Lender on
<br />the day monthly payments 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 yearly taxes and assessments (including condominium and planned unit development
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<br />assessments, if any) which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus
<br />one - twelfth of the yearly premium installments for hazard insurance, plus one - twelfth of yearly premium installments for
<br />mortgajile insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments
<br />and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to [ender
<br />to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an
<br />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 apply
<br />the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may
<br />agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower, and
<br />unless such agreement is made or applicable law requires such interest to he paid. Lender shall not be required to pay
<br />Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting
<br />of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br />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 fall due, such excess shall be, at Borrower's option.
<br />either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may
<br />require.
<br />Upon payment in full of all sums secured by this Deed of Trust. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />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 under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note at the applicable contract rate, and then to the principal
<br />of the Note.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under
<br />any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage, including Borrower's
<br />covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges,
<br />fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments
<br />or ground rents, if any.
<br />5. Hazard Insurance. 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 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 />8 that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable
<br />to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have
<br />the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security
<br />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 proof
<br />of loss if not trade promptly by Borrower.
<br />a 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 Property
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<br />or to the sums secured by this Deed of Trust.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
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<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a
<br />unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the
<br />tF declaration or covenants creating or governing the condominium or planned unit development, the by -laws and regulations
<br />of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Deed
<br />of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then
<br />Lender, at U dler s option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable
<br />attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage insurance
<br />as a edition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />Lender's written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the applicable contract rate.
<br />shall b000rte additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to
<br />other tents of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof.
<br />Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder.
<br />Ile Impecdon. Lender may snake or cause to be made reasonable entries upon and inspections of the Property, provided
<br />that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's
<br />interest in the Property.
<br />9, Cmullemustion. The proceeds of any award or claim for damages. direct or consequential, in connection with am
<br />condemnation or other taking of the Property, or part thereof, or for conveyance its lieu of condemnation, are hereby assigned
<br />and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security :agreement with a lacn
<br />which has priority over this Deed of Trust.
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