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00-- -. 101487
<br />the yearly taxes and assessments which may attain priority over this Deed
<br />of Trust, and ground rents on the Property, if any, plus one- twelfth of
<br />yearly premium installments for hazard insurance, all as reasonably
<br />estimated initially and from time to time by lender on the basis of
<br />assessments and bills and reasonable estimates thereof.
<br />The FMaids shall be held by Lender. Lender shall apply the Fluds to
<br />pay said taxes, assessments, insurance premiums and ground rents. The
<br />Flxds are pledged as additional security for the sums secured by this Deed
<br />of Trust.
<br />If the amount of the Funds held by Lender, together with the future
<br />monthly installments of Finds payable prior to the due dates of taxes,
<br />assessments, insurance premiums and ground rents shall exceed the amount
<br />required to pay said taxes, assessments, insurance premiums and ground
<br />rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments
<br />of Funds. If the amount of the Finds held by lender shall not be
<br />sufficient to pay taxes, assessments, insurance pre Bums, and ground rents
<br />as they fall due, Borrower shall pay to Lender any amount necessary to make
<br />up the deficiency within thirty (30) days from the date notice is mailed by
<br />Lerner to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender
<br />shall promptly refund to Borrower any Funds held by Lender. If under
<br />Paragraph 18 thereof the Property is sold or the Property is otherwise
<br />acquired by Lender, Lender shall apply, no later than immediately prior to
<br />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
<br />this Deed of Trust.
<br />3. APPLICATION OF PA)MNM: Unless applicable law provides
<br />otherwise, a payments recei nder under the Note and Paragraphs 1
<br />and 2 hereof shall be applied by Lender 1) first to interest payable on the
<br />Note, 2) then in payment of amounts payable to Lender by Borrower under
<br />Paragraph 2 hereof, and 3) then to the principal of the Note.
<br />4. CHARGES- LIENS: Borrower shall pay all taxes, assessments and
<br />other charges— , —Fines aTimpositions attributable to the Property which may
<br />attain a priority over this Deed of Trust, and leasehold payments or ground
<br />rents, if any, in the manner provided under Paragraph 2 hereof or, if not
<br />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
<br />amounts due under this paragraph, and in the event Borrower shall make
<br />payments directly, Borrower shall promptly furnish to Lender receipts
<br />evidencing such payments. Borrower shall promptly discharge any lien which
<br />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 agree in
<br />writing to the payment of the obligation secured by such lien in a manner
<br />acceptable to Lender, or shall in good faith contest such lien by, or
<br />defend enforcement of such lien in, legal proceedings which operate to
<br />prevent the enforcement of the lien or forfeiture of the Property or any
<br />part thereof.
<br />5. INSURANCE CGVERAGES: Borrower shall keep the improvements now
<br />existing or hereafter erect on the property insured against loss by fire,
<br />hazards included within the term "extended coverage ", and such other
<br />hazards as Lender may require, in the amount equal to the loan balance or
<br />for not less than 80 % of the full replacement value of the improvements,
<br />whichever is greater, as established by a competent insurance appraiser.
<br />Comprehensive general public liability insurance will also be obtained, in
<br />a company acceptable to the Lender, for an amount not less than $500,000.00
<br />combined single limit. Business interruption insurance equal to the
<br />business interruption value for a six (6) month period, as established by a
<br />competent insurance appraiser, shall also be carried throughout_ the term'of
<br />the loan.
<br />The insurance carrier pravidirW the insurance shall. be chosen 1,)y
<br />Borrower subject to approval by Lender; provided that such approval shall
<br />not be urreasonabiy withheld. All premiums on insurance trlicies shall to
<br />Maid in the MSTNer provided order Paragraphz : =r, ._,. rK>t rr,;d
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