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86- 104994
<br />It' Borrower pays Funds to Lender, the Funds shall he held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency [including Lender if tender 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
<br />pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and tender
<br />may agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower,
<br />and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required
<br />to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual
<br />accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit. to the Funds was
<br />made. The Funds are pledged as additional security for the sums secured by this Deed of Trust.
<br />If the amount of the Funds held by [.ender, 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
<br />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
<br />Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fait.
<br />due. Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender
<br />may require.
<br />Upon payment in full of all sums secured by this Deed of Trust. Lender shall promptly reform to Borrower any "
<br />Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by
<br />Lender. Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any
<br />Funds held by 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
<br />the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to tender by
<br />Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Nate.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Leas. Borrower shall perform all of Borrowers obligations
<br />under any mortgage. deed of trust or other security agreement with a lien which has priority over this Deed of Trust.
<br />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taus,
<br />assessments and other charges. fines and impositions attributable to the Property which may attain a priority over this
<br />Deed of Trust. and leasehold payments or ground rents, if any.
<br />S. Hazard insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender
<br />may require 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 />that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form
<br />acceptable to tender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender.
<br />Lender shall have the right to hold the policies and renewals thereof. subject to the terms of any mortgage. deed of trust
<br />or other security agreement with a lien which has pnority 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 made promptly by Borrower.
<br />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 is
<br />authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the
<br />Property or to the sums secured by this Deed of Trust,
<br />6. Preservation and Maintenance of Property: team*"; Condominiums: Planned Unit Developments. Bor-
<br />mwer shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the
<br />Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is
<br />on a unit in a condominium or a planned unit development. Borrower shall perform all of Borrower's obligations under
<br />the declaration or covenants creating or governing the condominium or planned unit development, the by -laws and "
<br />regulations of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower tails 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 />then Lender, at Lender's option, upon notice to Borrower. may make such appearances, disburse such sums. including
<br />reasonable attorneys' fees. and take such action as is necessary to protect Lender's interest_ If Lender required mortgage
<br />insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to
<br />maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with "
<br />Borrower's and Lender's written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph with interest thereon, at the Note rate, shall
<br />become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to
<br />other terms of payment, such amounts shall he payable upon notice from Lender to Borrower requesting p- yrneat
<br />thereof. Nothing contained in this paragraph . shall require Lender to 'incur any expense or take any action hereunder.
<br />8. inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property.
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />-_ -_ 9, Condemnation. The proceeds of any award or claim for damages_ direct or consequential- in connectisxi with
<br />any condemnation Or other taking of the Property, or part ihereof, oe for �,nveyanct in heu of c indemnartim, are
<br />hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed tit trust or other security agree-
<br />ment with a lien which has priority over this Deed of Trust.
<br />10, Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest of
<br />Borrower shall not operate to release. in any manner. the liability of the original Borrower and Borrowers successors in
<br />interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for pas
<br />meat or otherwise modify amortization of the sums secured bs this Deed of Trust by reason A ana demand made hi the
<br />original Borrower and Borrowers ,ux"ssors in mterest. An% forbearance bN Lender in exercising aoy right .,r re ^:edi
<br />hereunder. or othcmi r a €t+xdrd hi 1pJJIMahlC law, shall oitt '.W a ;+alter of �r preclude the vxvrcisw io .ins tuch FI&I ,r
<br />reme {Iv
<br />11. Sucioruors and Assigns Hound; Joint and Srrrrsl Llabflity; Co-irigntrs. 111
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