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86- 106169
<br />UHIFmm Coviimtlirm. Borrower and leader covenant and agree as follows:
<br />1. Paysnestt of Pristeipal and late". 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 an Future Advances secured by this feed of Trust.
<br />i. Funds fir Taxes anti imarance. Subject 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 fit full.
<br />a sum (herein "Fends ") equal to one - twelfth 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 one - twelfth of yearly premium installments for hazard insurance.
<br />plus one- twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time 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 are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution►. lender shall apply the Funds to pay said taxes, assessments.
<br />insurance 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 />ppeermits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Deed of Trust 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, Under shall not be required to pay Borrower 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 due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required in pay said taxes.
<br />assessments, insurance premiums and ground 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 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 date 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 tinder paragraph 18 hereof the Property is sold or the Property is othcrwise acquired by Lendcr. Lender
<br />shall apply, no later than immediately prior to 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 this Decd of Trust.
<br />3. Application of Payments. Unless applicable Law provides otherwise, all payments received by lender under the
<br />Note and paragraphs i and 2 hereof shall he applied by Lendcr first in payment of .mounts 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. Clurges; Liens. 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 shalt promptly furnish to Lendcr all notices of amounts due under this paragraph, and in the
<br />event Borrower shall make payment directly. Borrower shall promptly furnish to !.ender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of i nist; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing t,, the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall stn good faith contest such hen by, or defend enforcement of such lien in.
<br />legal pproceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />3. Nereid 1asurYce. Borrower shall keep the improvements now c,rsung or hereafter erected on the Property insured
<br />by fire, hazards included within the term "extended coverage ". and such other hazards as Lender may require
<br />Zloss
<br />attd in such amounts and for such periods as Lendcr may require; provided, that Lendcr 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 he 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 under 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 Corm acceptable to Lendcr and shall Include a standard mortgage
<br />clause in favor of and in form acceptable to Lendcr. Lender shall have the right to hold the poiictes and renewals thereof.
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<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 Lender. Lender may make proof of loss if not made promptly
<br />r'
<br />f
<br />by Botrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance pro,ecds ,hall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible .ind the security of this Decd of Trust is
<br />not thereby impaired. If such restoration or repair is not economically feasible or it the security of this Deed of Trust would
<br />be impaired, the insurance proceeds shall be applied to the sums 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 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 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 3 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 />in and to any insurance policies and in and to the proceeds thereof resulting trom damage to the Property prior ec the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />f, Preamadan and Mafatesance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, 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 Trust, 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 Trust as if the rider
<br />were a pmt hereof.
<br />7. Pralecfiao eti Cider's Security. If Borrower fails 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, butt rot limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invuNing a
<br />bankrupt or decedent then Lender at Leader's option, upon notice to Borrower, may make such appearances• disburse such
<br />stmeu and take such action as is necessary to protect Lender's interest, including, but not limited to. disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lendcr required mortgage insurance as a
<br />condition of making the loan secured by this Dead of Trust, Borrower shall pay the premiums required to maintain such
<br />imts'ance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />Lenders written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the
<br />manner provided s dis paragraph 2 hereof.
<br />MAayy arrtounts disbursed by 1 -ender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />indebledetess of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shalt be payable upon notice from i.ender to Bortiiwer requesting payment thereof, and shall hear interest trot the
<br />daft of disbursement at the rate payable from time to time on outstanding principal under the Note t :niess payment of interest
<br />at such raft would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate
<br />permasible under applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any cspense or take
<br />any action hereunder.
<br />1, /ngettfon. Lender may make or cause it, be made reasonable entries upon ,lad mtipe.tions nt ihc• Property woi idrd
<br />that lender shall give Borrower notice prior to any such imiNcuon specifying rea 011abIC CAU%c Qterc111r n•taicd to I under .
<br />initial in the Pronetiv.
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