|
°, _.._ 101185
<br />�UIMFOXM CovewAN13. Borrower and Lender covenant and agiec as follows:
<br />1. Ryme of PrinciM) nerd Interest. 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
<br />on anyy Failure Advances sccured by this Deed of Trust.
<br />Z. !iris for Tam and Insurance. Subiect to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a scan (herein "Funds ") equal to one - twelfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of inert. and ground rents on the Property, if any, plus one - twelfth of yearly premium installments for hazard.insurance.
<br />phut one- twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to lime by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
<br />state agency (including fender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
<br />insarance premiums and ground rents. Lender may not charge for 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 />pcttriis Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Deed of Tract that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borro.vcr any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />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 to
<br />the dire 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, such excess shall be, at Borrowers option, either
<br />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 within 30 days from the (late notice is mailed
<br />by Lender 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
<br />held by Lender. If under paragraph 18 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 tender, 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 1 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, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4• Clrasges; Lierre. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any, in the
<br />manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly
<br />to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the
<br />event 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 hen so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S unsaid isrwra ace. 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 Lend -r 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 />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided -rode[ paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof 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,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and fender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would
<br />be impaired, the insurance proceeds shall be applied to the sum% secured by this Deed of Trust, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date 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 1_ender's option either to restoration or repair of the Property
<br />or to the sums secured by this Deed of Trust_
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. if under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />io and to auy insurance policies attd in and to the proceeds thereof resuhing from damage to the Property prior to the sale
<br />or aoquisitan shall pass to Lender to the extent of the Bunts secured by this Deed of Trust immediately prior to such sale or
<br />Meiu ms; Planned Unit Developments. Borrower
<br />sthe mit impairment or deterioration of the Property
<br />brssleasehold. If this Deed of Trust is on a unit in a
<br />tast of Borrower's obligations under the declaration
<br />b velopment, the by -laws and regulations of the
<br />um -met development, and constituent do uments. If a condominium or planned unit development
<br />le tutecutad by Borrower and recorded together with this Deed of Trust, the covenants and agreements of such rider
<br />be itscorpors, into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the rider
<br />were a past soi.
<br />7. lMhsrla
<br />sela of Leader's SocaurNy. If Borrower fails to perform the covenants and agreements contained in this
<br />Dead of Tart, or if any action or proceeding is commenced which materially affects fender's interest in the Property,
<br />ittrt hiding, but not limited to, eminent domain, insolvency code enforcement, or arrangements or proceedings involving a
<br />6arkrs>pt or dtseedant, that Lesoder at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />guar sad take such action as it riscontary to protect Lenders interest, including, but not limited to, disbursement of
<br />rasosraMe atorsssy's feet and entry upon the Property to make repairs. 1[ Lender required mortgage insurance as c
<br />corditiorh of tmking the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such r. ithsrrMSS is stiset until atich FbW sqirerresuch urancrerrninates in accordance with Borrower's and
<br />greement or law, Borrower sIt 11 pay the amount of all mortgage insurance premiums in the
<br />under em
<br />L arna,rhta disbuarrsed by Leader put to this paragraph 7, with interest thereon. shall become additional
<br />of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />amottnb shalt be payable upon notice from Lender to Borrower requesting payment thereof, and shall hear interest from the
<br />dm of disbunisiment at the fate payable from lime to time on outstanding principal under the Note unless payment of interest
<br />at such rats would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate
<br />psrmiss" under( applicable law, Nothing contained in this paragraph 7 shall require Lender to incur any expense or take
<br />any action hereunder.
<br />g. lagtctfer [.ender may make or cause to be made reasonable entries upon and inspections of the Property prnvidcd
<br />that iAW,&r shall give Borrower notice prior to any such inspection specifying reasonable cause tberelm related r,+ l carder s
<br />rntetast in the Proostty.
<br />n
<br />M
<br />
|