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7
<br />004117
<br />applicable lisrroqu res such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall
<br />give to Borrower, without 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 fail 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 due, 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 shall promptly refund to Borrower any Funds held by Lender. If
<br />under paragraph 19 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 Trout.
<br />3. Application of Payaeata. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1
<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 />4. Cltargn; t4eft, 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 lung 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 goal 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 forfeiture of the Property or any part thereof.
<br />S. Haaard lswrataee. 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 shalt 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 he 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 he applied to :elicitation or repair of the Property
<br />damaged, provided such restoration or repair is economically feasible and the security of this teed of Trust is nut thereby impaired. If such
<br />restoration or repair is not economically feasible or if the security of this Iced 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 leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due
<br />date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph IH
<br />hereof the Property 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 sale or acquisition shall pass to lender to the extent of the sums secured by this Deed
<br />of Trust immediately prior to such sale or acquisition.
<br />a• Pnaersad" rid Ma1Na!•aace of Property; l.eaaebW&; Coadontlalams; Plaataed Unit Developmnia. 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 [case if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower
<br />shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit
<br />development. the by-laws and regulations of the condominium or planned unit development, and constituent documents. It a condominium or
<br />planned unit development rider is executed by Borrower and recorded together with this Deed 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 it the rider were a part
<br />hereof.
<br />7. Prolatfott of l,ea/er's SaeaAty. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust• 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 notice
<br />to Borrower, may make such appearances, disburse such sums and take such action as is necessary to project Lender's interest, including, but
<br />not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance
<br />as a condition of snaking the loan witted 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 ur applicable
<br />law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof.
<br />Any amounts diabutsed by Lemur pursuant to this paragraph 7, with interest thereon, shall become additional indebtedness of lionowct
<br />secured by this Dad of Trust. Unku Borrower and Lender agree to other terms of payment, such amounts shall he payable upon nonce Irons
<br />Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable front little to time tin
<br />outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts
<br />shall beat interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7 shall rcyuire I ender to incur anv
<br />cspense or take any action hereunder,
<br />g. leapeedaa. Lender may make or cause to he made reasonable entries upon and inspections of the Prop e.rty, provided that t melee shall
<br />A Borrower notice prior to any such inspection specifying reasunAbir cause therefor related to Lender's interest in the ProlW11%
<br />•. CoaAaasastlea. rite PfoccTTus of any award or claim for aannages, durst ur Consequential, n! ;o+encet!sn! with Arne "11hicnutatum
<br />"fl" fAkirg of the Property, ox part thereof, or for canseyance in Itru „f "'I"IrnmAlmn, arc herchv assigned anal shill be 1,1,1 t„ I rndrt e41
<br />I(' !hc event ul a 10111! takingnf the Properts, the prareds shall t.c ;applied ^, !hr 101111 sc. kited by ;his Ikrcl of I rust -,I Clio ilea +l, :! an,
<br />pa f F #rtruwet In the rsew or it Isarttal takma of the P!ohrt!s. unless 111 :�1.w rr .end t rrnkl .r, bete r.r ah1;: ;n u nu,p `1r1c .h.ril hr :at�j�lleJ
<br />! ;,e >n= snvu eel era ;hen (lead of 'trust au.h pr oju uYum ,d the nn �. �•c.11 ,.:. ,,ywrl 1. :!nee ;,, �. , ;� a!fa +. ih. 1: � 1 u:
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