|
000305
<br />8-
<br />applicable law requi %gdl'i #tea=t to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall
<br />give to Borrower, w"ithout'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 Funds 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 rents, 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 />installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and
<br />ground rents as they fall duce, 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 sums secured by this Deed of Trust, Lender shrill promptly refund to Borrower any Funds held by Lender. If
<br />under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately
<br />prior to the sale 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 Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I
<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 />0. Charges; Idem. 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, if any, in the manner provided under 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 Lender receipts evidencing such 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 so long as Borrower shall agree in writing to the payment of the
<br />obligation secured by such lien in a manner acceptable to Lender, 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 lien or Ion "eiture of the Property or any part thereof.
<br />S. Hazard Insurance. 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 periods
<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 sums secured by this Deed of Trust.
<br />The insurance carrier providing the insurance shall be 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 to Lender and shall include a standard mortgage clause in favor of
<br />and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
<br />Lender all renewal notices and all receipts of paid premiums. in the event of loss, Borrower shall give 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 shall be applied 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. If such
<br />restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds shall be
<br />applied to the sums secured by this Deed of Trust, with the excess, 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 mailed by Lender to Borrower that the insurance carrier offers to
<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
<br />repair of the Property 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 lot extend or postpone the due
<br />date of the monthly installtasnts referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18
<br />hereof the Propery is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
<br />thereof resulting from damage to the Property prior to the We or acquisition shall pass to Lender to the extent of the sums secured by this feed
<br />of Trust immediately prior to such sale or acquisition.
<br />a. Preservation and hishlomonm of Property; ; Condominiums; Planned Unit Developmeaft. 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 [can if this Deed of Trust is on a Ieaschold. If this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower
<br />s perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planner unit
<br />development. the by -laws and regulations of the condominium of planned unit development, and constituent documents. If a condominium or
<br />planned writ dcvdopuicni rifer is executed by Borrower and recorded together with this feed of Trust, the covenants and agreements of such
<br />rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the rider were a part
<br />hereof.
<br />7. Proilectlea of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this Decal of i'rust, or if any
<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 bankrupt or decedent, then Lender at Lender's option, upon nenice
<br />to Borrower. my make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but
<br />M limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If leader required mortgage insurance
<br />as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect
<br />until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable
<br />law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower
<br />secured by this Deed of Trust. Unless Borrower and Leader agree to other terms of payment, such amounts shall he payable upon notice from
<br />€zaer to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on
<br />t-tutstanding principal under the Note unless payment of interest at such rate would he contrary to applicable law, in which event such amounts
<br />shall bow interest at the highest fate permissible under applicable law. Nothing contained in this paragraph 7 shall require I ender to incur any
<br />expenise or take any action hateundar.
<br />A. Inspection. Lentider may make or cause to be made reasonable entries upon and inspections o1 the Property, provided that I cridet shall
<br />t
<br />give rower notice prior to any such inspection specifying reassemble cause therefor related to Lender's interest in the llroperty.
<br />u. C . The prteeedt of any award or claim for damages, direct or consequential, in connection with ioiv tondemnatton or
<br />(wher tak.ina e11 the PP(sperty, or part Iherelf, or fax conveyance to lieti (if , ondernnation, are herebv assigned and shall t1a' palti t,, 1 ceder
<br />7
<br />In ttie event of a total taking of the Property, the proceeds shall 1a applied to the sums secured by this ITreo oI 11 use, with die ca,:ess, a env.
<br />lamed to Ltutio*Vf. In the event of a paival taking of the l4opieriv, tutlr %5 Itot r—vr and I ender ,Ihcfwlw aster m ta!untr, !heir 0,411 hr applied
<br />,- the %ryIMi S4`Y: t2feQt by r119N fired (11 frtist PsuO proportion (4 the pYo N'Pa'd'. .1\ 1, 1,14-Al W 01a4 1 11"11 lu'l'l, h Ihr " 0)r —w, w, "Inn
<br />
|