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1035ib
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<br />apfocOile'law requires such interest to be paid, Lender shall not be required to pay Borrower any intrrest or earnings on the Funds. Lender shall
<br />give to Borrower, without charge, an annual accounting of the Funds showing credits and debits 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 Finds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
<br />assessments. insurance premiums and ground rem. shall exceed the amount required to pay said taxes, assessments, insurance premiums and
<br />ground rents as they fall due. such excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly
<br />irotalhlsents of Furls. If the amount of the Funds held 6r Lender shall not be sufficient to pay taxes, assessments, insurance premiums and
<br />ground rents 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 Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sutras secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds held by Lender. If
<br />under paragraph I hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately
<br />prior to the seek 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 Dam of Trust.
<br />. 3. Application of Payments. 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. Charges; Lim. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
<br />may attain a priority over this Deed of Trust, and leasehold payments or ground rents, of any, in the manner provided tinder 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 Leader receipts evidencing .uch payments. Borrower shall promptly discharge any lien which has priority over this Deed of Trust;
<br />provided, that Borrower shall not be required to discharge any such lien %o long as Borrower shall agree in writing to the payment of the
<br />obligation secured by such lien in a manner acceptable to tinder, 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 hen or forfenurc of t he Property or any pan thereof.
<br />S. Hazard Inarasce, 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 penods
<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 sutras secured by this Deed of Trust.
<br />The insurance carrier providing the insurance shall tie 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 making payment, when due, directly to the insurance carrier
<br />All insurance policies and renewals thereof shall be in form acceptable ro Lender and shall include -tandard mortgage clause in favor of
<br />and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals the :o• . .tic Borrower shall promptly furnish to
<br />Lender all renewal notices and all receipts of paid premiums in the cvcnt of loss, Borrower shall �:ve 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 shalt be a,., d 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. ►f such
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<br />restoration or repair is not economically feasible or if the security of this Dcrl of Trust would be impaired, the insurance proceeds shall be
<br />applied to the sutras secured by this Deed of Trust, with the execs%, 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 maileei by I. ender to Borrower that the insurance carrier offers to
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<br />settle a claim for insurance benefits. Lender is authorized to collect and apply the Insurance proceeds at Lender's option either to restoration or
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<br />repair of the Property or to the sums secured by this deed of Trust.
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<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due
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<br />date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments If under paragraph 18
<br />hereof the Property is acquired by Lender, all right, title and interest of Borrower to 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 Lender to the extent of the sums secured by this Deed
<br />of Trust immediately prior to such sak or acquisition.
<br />6. Preservation, amt Mdnlenance of Property; Lenelaolds; Coodomislams-, Planned Unit Deveiopinents. 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 lase if this Deed of Trust is on a leasehold. if 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 deveiopment, and constituent documents. If a condominium or
<br />planned unit devdopmertt rider is executed by Borrower and recorded together with this Deed of Trust, the covenants and agreements of such
<br />rider shall be incorporated into and shalt amend and supplement the covenants and agreements of this Deed of Trust as if the rider were a put
<br />hereof.
<br />7. Protection of Lender's Security. It Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if
<br />say
<br />action or proceeding is commenced which materially affects Lender's Interest in the Property, including, but not limited to, eminent domain,
<br />insolvency, code enforcement, or arrangements or proceedings involving a hankrupt or decedent, then Lender at Lender's option, upon notice
<br />to Borrower, may snake such appeuances, 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, t( Lender required mortgage insurance
<br />as a condition of snaking the loan secured bry this Deed of Trust. Borrower shalt pay the premiums required to maintain such insurance in effect
<br />matt! such time u the requirement for such insurance terminates in accurdance with Borrower's and Lender's written agreement or applicable
<br />taw. Borrower shall pay the amount of all mortgage insurance premiums to the manner provided under paragraph 2 hereof.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, %hail become additional indebtedness of Borrower
<br />secured by this Deed of Trust Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from
<br />Lander to Borrower requseumil payment thereof, and shalt bear interest from the date of disbursement at the rate payable from time to time on
<br />oagttanding principal undo the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts
<br />natal! bear httcttest at the highest rate permisrMe under applicable law Nothing contained in this paragraph ` shall requite Lender to incur any
<br />expense or take any action hereunder I
<br />I. fasARtlM. Lender may retake or cause to he made reasonable entrir, upon and inspections of the Property, provided that 1 ender shall
<br />give Bo rrowa notice prior to env slich inspet-uon specifying reasonable cause therefor related to Lender's interest in the Property
<br />*• CANdavasiod n,. rbe proceeds of tiny award rw claim list damages dirett or :onvrquentaai, is conneclton wuh any :oindemnau<,a .It
<br />otter taking of the Property, or part thereof. or for ""'o"'yance In I /ter of .c.rtdemnation, ere herehv assigned and shall he past to f cndrl
<br />in the Ftm of a tPtili !aktna f the Property, the p nkred. shall or by rbed tc, the sums secured n. •her t feed of 1 nest %rth :hr r.sest..I nor
<br />paid to Bonomw In the even ,i a parilal uakiha of the Propefiv unirv. It L..... r! Ards 1 er..trr, . otir'a.lte Aarcr I's .. t;nR. •tear .hill IK :tt.t.tl,-.!
<br />to this eu Rif wwfed b.,' till! fiend "•f f!url tnLh td VQUrn.m A sir tM,K Rata i! ', eq"Ai •o r".! h!ah 'hP :1tTt, .l `.(" '1 "rf .'t;lt, at\ ti •. ..,1
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