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<br />Urttt:oant CoverveNrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when dtie the principal of and interest on [he
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Deed of Trust.
<br />Z Fonds for Taxes and lasuraace. Subject [o applicable t:.w 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, unfit the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over [his
<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 bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed 6y 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 torso holding and applying the Ftrnds, analyzing said account
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits 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 shah t>e paid to Borrower and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay ~orrower 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 to pay said taxes,
<br />assessments, insurance premiums and ground rents as [he}• 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 [o 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 under paragraph 18 hereof the Property is sold or the Proper[}' is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition b}• Lender, any Funds held by
<br />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 I:iw provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and Z hereof shall be applied by fender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable nn the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lietrs. 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 shall promptly furnish ro Lender all notices of amounts due under [his paragraph, and in the
<br />event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good forth contest such lien by, or Defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insuraott. Borrower shall keep the improvements now existing or hereafter erected nn the Property insured
<br />against loss by fire, hazards included within-the term "extended coverage", and such other hazards as Lender ma}• require
<br />and in such amounts and for such Aerials as Lender may regwre: provideJ, that (.ender 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 be chosen by Horrower subject to appro+•al by Lender, pmvrdeJ.
<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 m form acceptable to [.ender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender .hall have the right to hoiJ the policies and renewals thereof,
<br />and Borrower shall peemptly furnish to Lender alt renewal notices and ail receipts of part premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance earner anJ Lender. tender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, ensurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration ur repair is economically feasible :md the security of [his DeeJ of Trust is
<br />no[ thereby impaired. If such restoration or repair is not economically feasible or i[ the security of this Deed of Tnist 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 abandoneJ by Borrower, or i( Borrower tad, to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance earner otters to settle a claim for insurance benefits, tender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to resroration or repair of the Property
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to m paragraphs 1 and '_ hereof or change the amount of
<br />such installments. If under paragraph 1 K hereof the Property rs acyuired by Lender, all right, title and interest of Harrower
<br />in and to any insurance policies and m and w the proceeJ> thcrrol resuluag from damage w the Property prior m the sale
<br />or acquisition shall pass to Lender to the extent of the sums sctiured b} this DeeJ of Trust immediately poor to such sale or
<br />acquisition.
<br />6. Preservation sod Mainleasace of Properly; Leaseholds; Condominiuats; Planned !.'nil ITevelopments. Borrower
<br />+hall keep the Property m good repair anJ shall nut :oinnut wa>te ar lx~rnut unpamnem ur Jrtrriurauon of the Property
<br />and shall comply with the provisions of any lease if this [~cd of Trust a un a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, $orrowrr shat) prdonn all of Borrower's obligations under the declaration
<br />or covenants creating or governing the vndominium or planned unit Development, the by-laws and regulations of the
<br />condominium or planned unit development, and censntuem dr>`umrms. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together wnh 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 Decd of 7-rust a> if the rider
<br />were a pall hereof.
<br />~. PrWeetioa of Leader's Security. If Borrower fads to perform the covenants and agreements contained in this
<br />Deed of Ttus[, or if any aline or proceeding is commenced which materially affects Lender's interest in the Property,
<br />~nctuding, but not limited to, eminent domain, insolvency, crate rnforcemeni, or arrangements or prxredings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon nonce to Borrower, ma} make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders interest, including, but not limited m, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
<br />condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums reyuired to maintain such
<br />insurance in effect until such time as ttte requirement for such insurance terminates m accordance wnh Borrower's :inJ
<br />Letxltis written agreement or applicable law'. Borrower shall pay the amount of all mortgage insurance premiums m the
<br />manrrer provided under paragraph Z hereof.
<br />Any amounts disbrused by !.ender pursuant to this paragraph 7, with interest thereon, shall t+econre additional
<br />indebtedness of Borrower secured by [his Dced of Trust. Unless $orrower and Lrndrr agree ro other [ernes of payment, such
<br />amounts shall be payable upon notice from Lender to Borrower reyuesting pa}'men; thereof, and shall Isar interest Iron the
<br />date of di9tnttxment at the rate payable from time to time on outstanding principal under the Notr unless payment of interest
<br />at such rate would be eorrtrary to applicable law, ur which event uich amounts shall liar uuere+t at the highest rate
<br />pet•[niait>Ie ttttder applicable law. Nothing contained in this paragraph 7 shall rryuire Lender to incur any expense or take
<br />any action hereunder.
<br />g. Iayeetioa. L.endet rosy make: or cause to t+e made reaxrnable cetera upon and mspecnuns of the Property, pnivideJ
<br />that tender shall give Borrower notice prior to any >uch inspection specifying reasonable cause therctor related to 1 antler's
<br />interest in the Ptoaesty.
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