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86- 102553
<br />L;s%Irottm Covr :foods. Borrower and Lender _ovenam and 'agree as follows:
<br />L Payment of Principal and Interest. Borrower shall promptly pay when doe the principal of and interest on the
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<br />ochicdnesc evidenced by the Note, prepayment and fate charges as provided ht the Nate. and the principal of and interest
<br />(� on any (adore Advanec, + ,: cd by this Deed of (real.
<br />11 2. Funds for "rn%= and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to I..Coder cIa cite day moriddy in,talhil of principal and iroctc i are payable under the Note, until the Note is paid in full.
<br />a sa,m (herein '•Fundi'1 equal to one- twclfih of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trust, and ground rents on the Property, if any, plus onc- twelfth of yearly premium installments for hazard insurance.
<br />plus ono:- Iweilth of yearly premium installments for mortgage insurance. it any. all as reasonably estimated initially and from
<br />time to time by lender on the basis of assessments and hilts 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
<br />state agency (including. Lender if Lender is such an institution). Lender shall apply the Punts to pay said tares. assessments.
<br />insurance premiums and ground rents. Lender may not charge for %o holding and applying the Funds, analyzing said account
<br />or verifying and compiling said assessments and hills, unhis% Lender pays Borrower interest on the Funds :md applicable law
<br />permits I ender to make such a charge. Borrower and Lende. may agree in writing at the time of execution of this
<br />Deed of Trust that interest on the Funds shall he 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 Borrower wri interest or earnings on the Funds. Lender
<br />shalt give to Borrower, without charge, an annual aceounung ,N the Funds ,howing credits and dchit% to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds arc 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 due 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 is they fail due, such esce- shall he, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Fond=_. If the arnount of the Funds
<br />held by Lender shall not be sufficient Ill pay rises, rear %sments. insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount necessary to nrak: up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in (till of all sums sectored by this Deed o! Trust. 1 ender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 13 hereof the Property is told or the Property Is otherwise acquired by Lcnder. Lender
<br />shall apply. no later than inimed'iaiely Prior to the sale of the Property or its acquisitor, fly Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Decd of ihtst.
<br />3. Application of Payments. Unless applicabic !ir,% provides othenv,se, all payments received by Lcnder under the
<br />Note and paragraphs 1 and 2 hereof shall to applied by I ender first in payment of amounts payable to Lcnder by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then io the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay a!! taxes, arse <sntcnt, in,t tither charges. lines and wnpovtons 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 tit such manner, by Borrower making payment, when due, directly
<br />to the payee thereof. Borrower shall promptly furnish to Lender :ill notice, of amounts ,hue under this paragraph, and in the
<br />event Borrower shall make payment directly, Borrower %hall promptly fornah to 1 colder receipts cvideming such payments.
<br />Borrower shall promptly discharge any lien which has peon,} oscr thu Meet! of I roar; provided, that Borrower shall not he
<br />required to discharge any such lien so long as Borrower shall agree in tiijiog o the payment of [tic obligation secured by
<br />such lien in it manner acceptable to Lender, or shall in good f :ulh Come %t %arch lien by, or defend entoi,'cment of such hen in.
<br />legal proceedings which operate to prevent the enforcement tit ncc lien or foiten ire of the Prope!ty or a,t% part thereof.
<br />5 Hazard Insurance. Botiolser %hii',I keep, ncc' ii rovemenis r ;snng or hcrcaftc; erected on the Property insured
<br />against loss by fire, hazards included within the :erne "extended coverage' an,t %u,h other hazards as Lender may require
<br />and in such amounts and for such pet..-ds as Lender may rcywrc: p1701i11cd. that Lender ,.half not requnc that the aottnint of
<br />such coverage exceed that amount of coverage required to pa-, the swim secured by [his Deal of Trost
<br />The insurance carrier providing the insurance shall he :ho,cn by Borrower subieci to approval by i.ender: provided.
<br />that such approval shall not be Lill reasonahly withheld All pretnan, or. +murancc pohcacs shall tic paid in the manner
<br />provided under paragraph 2 hereof or, if not paid it) such manner, t,s Borrower making payment, when due, directly to the
<br />insurance cattier.
<br />All insurance policies and renewals thereof ,hall hem Iwnl acceptable m 1 ender and shall include a standard mortgage
<br />clause in favor of and in form acspiahle to Lender. I cn&t ,hall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender .,If renewal nonce, ;Ind ,Ili n•cetpt% of paid premoans. Lt the event of loss.
<br />Borrower shall give prompt notice m the insurance : arrtcii and f ender I critter rn.j% make proof of loss it not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree u, ,sting, n+.sut,uxe proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair n ec,monn ally % fea,iblc .and the %ecuety of this Deed of Tnrst is
<br />not thereby' impaired. If such restoration or repair is not econonu..dly tcasible nr i1 the senuity of thi% Deed of Rust would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Deed of rrust, with the excess, if any, pail
<br />to Borrower. If the Property is abandoned by Borrower, it if limro,ser tails to respond to Lender wtthm 30 days from the
<br />date notice is mailed by Lender to Borrower that the Insurance earner oflers 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
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree m writing..tny such app hcation of proceeds to principal ,hall not extend
<br />or postpone the due date of the monthly installments n ferred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property rs acquired by Lender, all right. title and interest of Borrower
<br />in and to any insurance policies and in and let the proceeds thereof resulting front damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Deed of Trust Immediately prior Io such stdc or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not coming •,sasic nr perlmlt imp:urnent or &Lcrtor iwn of tire Property
<br />and shall comply with the provisions of any lease if this feed of l rust is tin a icaschold, if this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall (n:rlorm all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned umt developm —, the by -laws and regulations of the
<br />condominium or planned unit development. and constituent documents If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Deed of "Dust, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Deed of 1 rust as if the rider
<br />were a part hereof.
<br />7. Prolectlon of Leader's Security. if Borrower fads to perform the covenants and agreements contained in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, Lout not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involsing a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited to, dishursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs It Lender required nuirigage muurame as :,
<br />condition of making the loan secured by this Deed of 'trust Borrower shall pay tie premrurns required to maintain such
<br />ansurarl in effect until such time as the requirement for such insurance renmtnale, ui accord,wcc with Borrower's and
<br />Lender's written agreement or applicable law Borrower shall pay the amount of :ill mortgage Insurance picmnums In the
<br />L manner provided under paragraph 2 hereof.
<br />Any amounts disbutsed by Lender pursuant to this paragraph '. with interest thereon. shall I+ccorme additional
<br />ndebtedness of Borrower secured by This Deed of Trust. Unless Borrower and Lender agree to otner let nu of payment, snch
<br />amounts shalt be payable upon notice front Lender to Liorrnwer rcquesnng payment thereof. •ind shall I.-at Interest Iron' Oic
<br />dale of dishursement at the rate payable from titre t:, mn,c :,n ;, i%ta nanny princq>al under the Note limes, payment of nuere,t
<br />At such rate would he .ororrary• to applicable law in wh,sh event such amouors .hall heal nwerect .It the hoghe,t ;ate
<br />permissible under apphcahie law Nothing contalacd :n thn ;>ar:i graph ' ,h:,!i : ,!e I cider to ,arur .u,y exrxnse or take
<br />any actin hereunder
<br />S. InspectMn. I ender ntav make ,sr ,:n w t<= he :nadr r[•a„„..Ihic , +r r d I,t :.,,.o. t o1c Pr• Ilan,
<br />that 1, ni,er had r yr Bdv ,c =tic: r her prl,.t , ,nr. ru -h •rite... si`c,�rt: ,t' .I..., , _I. I. 51i ..i u•
<br />..,tereait ;e, the 1'rorrrv.
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