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L. MFC1RM COVENANTS Borrower and Lender covenant and agree as toi':ows.
<br />t. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />do bae€tness ev denied by tale Note, prepayment and late charges as provided in the mote, and €tae prmcipal of and interest on
<br />any Future Advances secured by the Deed of Trust.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender
<br />on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (health
<br />..Funds") equal to one- tweifth of the yearly taxes and assessments which may attain priority over this Deed of Trust, and
<br />ground rents on the Property, if any, p €us one - twelfth of yearly premium installments for hazard insurance. plus one - twelfth of
<br />yearly premium instsf €menu for rr insurance. if any. all as reasonably estimated initially and from time to time by
<br />I on the basis of assessments an_ balls and reascoatxe estimates Thereof.
<br />The Funds shalt roe held in an institution the deposits or accounts of which are insured or guaranteed, by a Federal or state
<br />agency (including Lender if tender is such an institution) Lender shall apply the funds to Day said taxes, assessments.
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the fund& analyzing said account
<br />or verifying and compiring said assessments ano bills. unless Lender pays Borrower interest on the Funds and a plicabie law
<br />permits Lender to make such a charge Borrower and Lender may agree in writing at the time of execution of this of Trust
<br />that interest on the Funds shall be paid to Borrower. and unless such agreement is made or ap l;oalbe law requires such
<br />interest to be paid, Lender shall not be required to pray Borrower anp interest or earnings Of tfxe Funds. Lender shall give to
<br />Borrower, without charge, an annual accounting •f if-re Finds snowing credits and debits to the Funds and the purpose for
<br />which each detail to the Funds was made The Funds are pledged as addilional additional ser urty for the sums secured by this Deed of
<br />Trust.
<br />it the amount !;he to =ids held by Lerner . together mit• the far„r� ;thly installments of Funds payable prior to the due
<br />dates of taxes, assessments. insurance premiums ano ground rents shaft ex :eel the amount required to pay said taxes,
<br />assessments . insurance premiums and ground rents as they fall d_.e such excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited 11 Eie i rowei on monthly : s zi'n,e, Fonds f the amount of the Funds held by
<br />Lender shall rot be sufficient .o pay Taxes, assessments its ran ;cepre iunsand rrurd.entsastneyfa i cue Borrowershail
<br />pay to Lender any amount necessary to makeup ?rte d t+cier ^y w ,r 1, 30, lays
<br />clm Inc- date otire is mailed by Lender to
<br />Borrower requesr g payment Thereof
<br />Upon payment n fuii of ah sums sea=red vy this Fieec v Ti a t. � �= s; a � ,,,y �et� :rid to Borrower any Funds held by
<br />Lender if under paragraph 18 hereof f e Property s ,o'.d t' a. !ne se a : du ire; -v Lender. Lender shaft apply,
<br />no later than immediately prior to the sate of the FFr„ erty 0. , as aCQL s, ., Fv. :as he'd by Lender atthe time of
<br />application as a credit against the sums secured by this Deed of T,ust-
<br />3- Application cf Payments. Unless applicable taw provides - erv,•ise +i r ayrre ,is receiver: by Lender under the Note
<br />and paragraphs and 2 hereof shat be applied by LerC rs :n F�v ^.ts avah ¢ to Lender by Borrower under
<br />para raph 2 hereof, then to interest cayat,!a on the No ",e, men .o tr.fe ,.v _ icit&, and iien to interest and principal on
<br />any Future Advances.
<br />•. Charges; Liens. Bormwerssnail Day all taxes. assessments ardo!hei c,^ wrges. finesard sirpositior.satlributabletottle
<br />Property which tray attain a priority over this Deed of Trust, xio leasehicld payments or greiund rents, if any, in the manner
<br />provided under paragraph 2 "ereof or,;' not paid in sucin, manner. by Borrower -saki ,g payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shaii promptly furnish fo Lender receipts evidencing such payments.
<br />Borrower snail crornptly discharge any lien which has priority over this geed of Trust; provided, that Borrower shall not be
<br />required to discharge any such lien so iong as Borrower shall agree =n writing to the payment of the obligation secured by such
<br />iien in a manner acceptable to Lender. or snail in goon! faith contest such her by, or defend enforcement of such lien in, legal
<br />proceedings which operate to prevent the enforcement of the tier•. or tarfeiture of the Property or any part thereof.
<br />5- Hazard Insurance. Borrower shall keep the improvements row existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term 'extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such= perinds as Lender may require, vrovided. that Lender shall not require that the amount of
<br />such coverage exceed that amount of :_overage required to pay the sums secured by this geed of Trust.
<br />This insurance carrier providing €ne insurance shall be chosen :,,v °err ,wer subject to approval by Lender' provided, that
<br />such approval shall not be unreasonably withheld Ail premiums on insurance policies shall be paid in the manner provided
<br />tinder paragraph 2 hereof or,. ,f not paid in such manner, by Borrower making payment, when due.. directly to the insurance
<br />carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender snail nave the right to hold the policies and renewalsthereof, and
<br />Borrower shah promptly furnish to Lender ail renewal notices and ail receipts of paid premiums.In the event of loss. Borrower
<br />shall give prompt notice to the iinsuran:ce carrier and Lender. Lender rra y make proof of loss if not made promptly by Borrower.
<br />unless Lender and Borrower otiterw +se agree.! n wrtirig, insi;ran e prcreedssnail be appiied to restoration or repair of the
<br />Property damaged, provided such restoration or repair s ecoromrcaliy teasible and the security of this Deed of Trust is not
<br />thereby impaired. !f such restoration ar repair is not economically feasible or if the security of this Deed of Trust would be
<br />impaired, the insurance proceeds shall be. applied to the sums sef ured by This Deed of Trust, with the excess, if any, paid to
<br />Borrower it the Property is abandoned by Borrower. Or if Borrower faits fr, respond to Lender within 34 days from the date
<br />notice is mailed by Lender to Borrower that the insurance carrier -fters to settle a claim for insurance benefits, Lender is
<br />authorized to collect and apply the insurance proceeds at Lender' ,Dti:-In eithem to rest:;raticn or repair of the Property or to
<br />the sums secured by this Deed of Trust
<br />Unless Lender ano Borrower otherwise agree in wrmng, any st :c ;: appl catior of proceedsto principal shall notextend or
<br />postpone the due date of the anonthly ,rlsta0ments referred tau ,n paragraphs : and 2 hereof or change the amount of such
<br />nStailRaents if under paragrapt} 18 hereof the Property :5 ac:q'u, re, ^, by Lender a!I right. title and interest of Borrower in and to
<br />any insurance pomicies and ;r. and is the proceeds thereof resulting from damage to the Property prior to the sale or acquisition
<br />shall pass to Lender to line extent of the sums secured by tl,ms Deed of Trust rmmediatE!iv prior to such sale or acquisition.
<br />5. Presentation and Maintenance of Property; Leasetaotds; Dondommiums; Planned Unit Developments. Borrower shall
<br />seep the Property in good repair and shah riot coma, ;t waste of permit impairment of deterioration of the Property and shall
<br />comply wi *.h the r;•ovisions of any lease sf this Deed of Trusts on a =easehcid fl his Deed of Trust is on a unit in a condominium
<br />or a planned unit development, grower shalt pe rm all of B;irr,ower's obligations under the declaration or covenants
<br />creating or governarg the cor+dcm,nium or planned unit deve�opme =.t, the by -laws and regulations of the condominium or
<br />planned unit deve ;op her` and constituent dot laserits. li a ccnd rrtlom or planned unit development rider is excuted by
<br />Borrower and recorded together with -tits Deefjcif it s, ine covenant[ and agreements of such rider shall be incorporated
<br />into and shall amend and supplement tt e coo r a t4s and agreemer :_ of to ff ed of T dS zf the i ?der were a parr hereof
<br />7. Prallection of Lendier's 5ecuntly. f Borrower taxis to perfc,rm tine covenants and agreements contained in this Deed of
<br />Trust . or if any action or proceeding is commenced with materially affects Lender `s interest in the Property, including but not
<br />rim: €ed to, eminent domain, ;nsolvencv. code enforcement. or ar rangernents or proceedings irvoiving a bankrupt or decedent.
<br />inter Lerider at t ender s opttor. upar; notice to Borrower, may make such appearances, disburse suer sums and take suct, .
<br />action as;s necessary to protect Lender s mlerest, including. but not'itrnited to, disbursemert cf reasonableeatiorrev's leesand
<br />e u Prop�tyflxi Weeks fep.a r� if Ler�r requ ;re<�a*aoRgage insurance as a cerditior- ui making She loan sect :her# by
<br />me = of 7rusl, Borrower shalt/ pay the premiums required to *ramfain sucrl insurance in effect until such time as the
<br />u rernent for such ins&rrance terminates in accordance with Borrower's and Lender's written agreement or appltcalbe taw
<br />Borrower snail pay the aarouni of alt mortgage insurance premiums it the manner provided under paragraph 2 hereof
<br />Any amounts disbursed by 'Lender pursuant 10 thi5 paragraph 7, with interest €hereon, shall become additional
<br />ndebredrferss of Borrower secured by this of Trust. unless borrower and Lender agree to other terms of payment. such
<br />,Iniounts snail €: payable upon n=otice from Lender to Borrower requesting payment hereof, and shall bear interest from t ^,e
<br />,date of dmIcufsement at the rate payableftom time to tune on ou lstarilirig princrpai under the •vets unless payment Of Ir ^erect
<br />all cr; rate wcluid be contrary to appi+cab4e taw, =r wh;cn event such amounts shall bear merest at tae highest :rate
<br />rats e unC' z app.ic �sbl$ taw. is rr h r; c: >rttai^ n 4r.s pa•agraDn 7 Snali requat. Lender t„ c -�i; to r,V �� See r. see par take eanv
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