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If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposit's or acco®ts of which are
<br />insured or guaranteed by a Federal or state agency (including Lender if Lender 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
<br />may agree in writing at the time of execution of this Deed of Trust that interest on the Funds sha . Borrower and Lender
<br />ll be paid to Borrower,
<br />and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be
<br />to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, with required
<br />out charge, a annual
<br />accounting of the Funds showing credits and debits to the Funds and tire 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 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 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 fall
<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 refund 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 />'.ender, Lender shall apply, no later than immediately prior to the sale of the Prolverty 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 I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note.
<br />4. prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's 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 taxes.
<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 Lender 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 priority 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 file 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 L.ender's option either to restoration or repair of the
<br />Property or to the sums secured by this Decd of Trust.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Bor-
<br />rower 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 ofthe condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender'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 />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 it) Borrower requesting payment
<br />thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder.
<br />R. 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. Condemuatian. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />any condemnation or other taking of the Property, or part thereof. or for conveyance in lieu of condemnation, are
<br />hereby assigned and shall be paid to Lender, subject to the terms of any mort gage, deed of trust or other security agree-
<br />went 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 ,r-
<br />modification of amcmization 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 Bo a w '
<br />Borrower and Borroers successotx in
<br />interest. Lender shall riot be required to commence proceedings against such successor or ret'use to extend time for pav-
<br />mcnf or otherwise modify amortization of tilt sums secured by this Deed of Trust by reason of any demand made by the
<br />original Borrower and Borrower's successors in interest. Any forbearance by Lender in cxercisin any right or rcnordw
<br />hereunder, or otherwise aflitded by applicable law. shall not he a waiver of or preclude the exercise of any sorb Want or
<br />remedy.
<br />IL Sgrc— rs and Assigns Bnundr Joint and Several Liability 11 Co- Agnen. Iln• cmen;uos and acrrenrcnl,
<br />herein c (stained shall t)tnd. and the rights hereunder shall inure• tn• the nap, clrve ,uccessor, ;nnl newt rn o1 1 cadet •imp
<br />Borrower, suhlccl u, the prowesums nl paragraph Ib hereof. All covenants roof ap recnu ni, ..f ISn:I',iwcr ,haft br �,•m' and
<br />.axr;raS. Any Borr,_cr who _,,$gne lint 17eed of I,r'Hl, but doors nut exrx'Uta' the iVr,SC. i.,i r. ��� ,V<nmti� tilt, I Irc.f �•t I ru,I
<br />only f.,, p{r arrl :,oil come Px lhal Ite,rruw,c r', rnlrre`,e ore the Prolw'rty In I rol%ict' under lit'
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