|
<br />$4'--i) 0 019 5
<br />IJMFORM Covexetvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payrnedt stf Peincipl ad Interest. Borrower shall promptly pay ~~hen due the principal of and interest on the
<br />indebtedneu evidenced by the Note, prepayment and late charges as provided in the No[e, and the principal of and interest
<br />on any Future Advances secured by this Deed of Trust.
<br />Z. PtTu ter Tntttes M /wn~te. Subject ~-applkable law or to a written waiver by -Lender, Borrower shall pry
<br />to Lenikr on [he day monody installments of principal and interest are payable under the Note, until the Nnte is paid in full,
<br />a sum (herein "Funds") equal [n one-twelfth of the yirapy taxes and assessments which may attain priority over this
<br />Deed of Trust, and grottad rents on dtCProperty, if any, plus 01te-twelfth n( yearly premium installments for hazard insurance.
<br />plus one-twelfth of yearly prnnitim iostatlmerth for taevi4~einsurance, if any, all as seasonably estimated-initially and from
<br />time to time by Lender on the 6uis of assesemat[s said bills and reasonable estimates thereof.
<br />The Funds shall be held--in an institution tlr~Attpissifs or accounts of which are insured or guaranteed by a-Federal or
<br />state agency (incltxiing Lender if Lender is such air'inatitution). Lender shalt apply the Funds to pay said-taxes, assessments,
<br />insurance-premiums and ground Watts. Lender tray not charge for so holding and applying the Funds,-analyzing uidaccount
<br />or verifying and coatpiling uid assesstttents attd bills, unless Lender pays Borrower interest on the Funds and-applicable law
<br />permits Lender to make such a oberge. 6orrbllver and Lender may agree in writing at tfie tiro"t of -execution of this
<br />Deed of Trust [hat interest on the Funds shalf'Dt_pf~i/ tq Borrower, and unless such agreement is made or applicable law-
<br />requires such interest to be paid,-Lander shag riot-'bE iagnircd to pay Borrower any interest or eaminps on the Funds. Lender
<br />shall give to Borrower, without charge, an.annual accounting of the Funds showing credits and debus to the Funds-and the
<br />purpose for which each debit to the Furtds was made. The Funds are pledged as additional security for the sums secured
<br />6y thrs Deed of Trust.
<br />I[ the amount of the Funds held by Lender, together with the future monthly installrrtents 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 [axes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, a[ Borrower's option, either
<br />promptly repaid to Borrower or crcdittd 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 to Lender any amount necesury to make up the deficiency within 30 days from [he date notice is mailed
<br />by Lender to Borrower requesting payment thereof. -
<br />Upon payment in fuft of all suns secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds
<br />held by lender. If under paragraph IS hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by 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 mf hytetate. Unless applicable law provides otherwise, all payments received by Lender under [he
<br />Note and paragraphs 1 and 2 hereof shall fie applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of [he Note, and thin to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lksts. 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 to i.ender all notices of amounts due under this paragraph. and in the
<br />event Borrower shall make payment directly, Borrower shall promptly iurnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of 7-rust; provided, that Borrower shall not he
<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, yr shall in goal faith contest such lien by, or defend enforcement of such lien in.
<br />legal pproceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Haxsnd insnraaee. 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 may require
<br />and in such amounts and for such periods as Lender may require; provided, that I-ender shall not require that N. ^mount of
<br />such rnverage exceed that amount of coverege reyuired to pay the sums secured by this Deed of Tnist.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject tv approval by Lender; provided.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall he paid jn the manner
<br />provided under paragraph 2 hereof or, if na paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Linder all renewal notices and all receipts of paid premiums. In the event of Ivss,
<br />Borrower shall give prompt notice to the insurance wn~ier and Lender. Lender may make proof of Ivss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair n economically feasible and the security of this Deed of Trust is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of l7ust would
<br />be impaired, the insurance proceeds shalt fie applied to the sums secured by this Decd of Trust, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />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 shalt not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. if under paragraph 18 hereal the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acgmsition.
<br />6. Preservation sad Mri~trnagce of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shat) not commit waste ur pe:rmit impairment or deteriorution of the Property
<br />and shalt rnmply with the provisions of any lease if this Ueed o[ Trust is on a leasehold. If this Deed of Trust is nn a unit in a
<br />condominium or a planned unit development, Borrower shall pertonn all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned trait development, the by-laws and regulations of the
<br />wndominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Dead of Trust, the covenants and agreements vl such rider
<br />shalt be incorporated into and shall amend and supplement [he covenants and agreements of this Deed of Trust as if the rider
<br />were a part hereof.
<br />7. hotection of Letder's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Deed of Trust, oz if soy action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />ineludiog, but not limited ro, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice m Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited tv, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If' bender reyuired mortgage insurance as a
<br />condition of making the Inan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such
<br />insurance in efftet until such time as the requirement fur such insurance terminates in aceordance with Borrower's' and
<br />L.tnder's writteaagrcement or applicable law, Borrower shall pay the amoum of all mortgage insurance premiums in the
<br />manttu propidcd under paragraph 2 hereof.
<br />Anp G.EnOmtts disbursed by Ltoder pursuant to this paragraph 7, with interest thereon. shall become additional
<br />ituiebtedness of BorroWtr sceirrtd by this Deed of Trust. Unless Borrower and [.ender agree to other terms of payment, such
<br />atttounts shall be payable upon notice from Ltndet w Borrower reyucsting payment therrnf, and shall tzar interes! from the
<br />date of diabursetncnt aC the tale payabla from time to time nn outstanding principal under the Nae unless payment of interest
<br />at such rate viould be contrary iv applcabte law, in which event such amounts shall hear interest at the highest rate
<br />petmiuibk under applicable taw. Nothing enntained in this paragraph 7 xhaN require Lender to incur any expense or take
<br />any action bertunder.
<br />tk ltapatiias.. l.;ender may make yr cause tq be made reasonable entries upon and inspections of the Property, provided
<br />that Lertdtr shaft grvc Barrowtr noon prior to any such inspection specifying rcauioable cause lhtrtfor related to Leader's
<br />iattrest in the Proueriv.
<br />
|