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<br />Ux[ronat Covt=.atsrr•rs. Borrower and Lender covenant and agree as follows:
<br />.2-. Payment of -Pri»cipai and Interest. Borrower shall promptly pay when due' the principal of and interest nn. the
<br />indebtedness evidenced hY the Note, prepaymem and late charges as-provided in the Note, and theptincipal-of and interest
<br />on any Future Advances secured by this Deed of Tntsi. - -
<br />Z. Faa~ for Taas tmd Irtsmaoce. Subject to applicable law or to a written waiver by Lender, Borrower -shalt pay
<br />to Lender on-the day monthly ~instaAments of principal and interest are payable under the- Note, untiFthe 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 this
<br />Deed of Trus4 and-ground rants on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance;
<br />plus on.=twelfth of yearly premium installments far mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the-basis of assessmems and bills artd reasonable estimates thereof. -
<br />The Funds shall be hdd in an institution the deposits or accounts of which are insured or guaranteed by 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 for so holding and applying the Fonds, analyzing said accoum
<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 Lander may agree -in writing at. the time of execution of -this
<br />Deed of Ttvst that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable-law
<br />rettuires such interest ro be paid, Lender shall not be-required to pay Borsowzr any interest o: earnings on the.Funds- Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds showing credits-and debits to trio Fonds-and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as addifinnal security for [he sums secured
<br />by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly. ins[atiments 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 they fall due, such excess shalt tie:' at Borrower's option, either
<br />promptly repaid to Harrower or credited to Borrawar an manthly instaiimenis of Funds. ~ if the amount of the Funds
<br />held by Lender shag not be sufficient to pay taxes, assessments, insurance premiums and ground rents ac they faildue.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 3Q days fram the date notice is mailed
<br />by Lender to Borrower rcquestiag payment thereof.
<br />Upon payment in Euli of ati sums secured by this Deed of Trust, i_ender shall promptly refund to Borrower any Funds
<br />held by Lender, if under paragraph t 8 hereof the Properly is sold or the Property is otherwise acquired by Lender, 1_ender
<br />shalt apply, no later than immediately prior to the sa{e of the Property or its acquisition by Lender, any Fonds held by
<br />Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br />3. Applicatlon of Payments. Unless applicable law provides otherwise, xli payments received by Lender under the
<br />Nate and paragraphs 1 and 2 hereof shall be applied by !..ender first in payment of amounts payable ro Lender by Borsower
<br />under paragraph 2 hereof, than to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on anV Future Advances.
<br />A. Chargest Liens. 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 ar, if not paid in such manner, by Borrower making payment, when due, directly
<br />to the payce thereof. Borrower shall prumptty furnish to Lender all notices of amounts due under this 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 prorat}• over this Deed of Trust, provided, [hat Borrower shall no[ be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the pa_y neat of the obligation secured by
<br />such lien in a manner acceptable to Lender, ar shall in goad faith contest such lien by, or defend enforcement of such lien in.
<br />legal proceedings which operate ro prevent the enforcement of the Tien or forfeiture of the Property or any part thereof.
<br />5. );Ia~rd Imurasce. Borrower shall keep the improvements now existing or hereafter erected on 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 Lander may require; provided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount at coverage required to pay 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.
<br />that s»ch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Barsower making payment, when due, directly to the
<br />itutrraace carrier.
<br />All irxst[rance policies and rtrtewals thereof shall he m form acceptable to Lender and shall include a standard mottgage
<br />clause in favor of and Sn form acceptable to Lender. 1_ender shall have the right to hold the policies and renewals thereof,
<br />sect borrower shall promptly furnish to Lender all renewal notices and ail receipts of paid premiums. fn the event of loss,
<br />Borrower short give prompt notice to the insurance carrier and Linder. tender may make proof of loss if not trade promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, inst.ranre proceeds shall be applied to restoration or repair of
<br />the Property damaged. provided such mstorafiort ur rapatr is economically feasible and the securiry of this Deed of Trust is
<br />not thereby impaired. if such restoration or repair is not econamicaU}• feasible or ;f the security of this Peed of "(Yost would
<br />be impaired, the insurance proceeds shall be applied In the sums secured by this Deed of `Trust, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower. or iF Borrower faits to respond to Lender within s0 days fram the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance tmnefits, !.,ender
<br />is authariud 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 shall not extend
<br />or postporre the due date o[ ttte monthly installments referreri to in paragraphs I and Z hereof ar change the amount of
<br />such trtstaitments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Rorrawer
<br />in anti to any insurance. policies and in and m the proceeds thereof resulting from damage to the Propert}• prior to the sale
<br />or acquisition shag pass to Lender to the extent of the sums secured by this peed of Trust immediately prior to such sale or
<br />aCrtul3itlaa.
<br />- - 6. Pravratlos and Mtdattrraace of Preperty; txasehotds; Cor~ominiums; Planned Unit Dereloptnenls. florrewer
<br />shall keep the Fmperty in good repair and shat) not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease ff this [ltd of Trust is an a Leasehold. If this iced aC Trust is an a unit in a
<br />condominium or a planned unit development, Borrower shalt perform alt of Borrower's abtigations under the declaration
<br />ar covenants creating ar governing the condominium nr planned unit development, the by-laws and regulations of the
<br />r_rondominium or ptrtoned unit develaprtient, and constituent documents, if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Deed of 'trust, the covenants and agreements of such rider
<br />shag be iiuorpotatal into and shat! amend and supplement the covenants and agreements of this Deed of Trust as if the rider
<br />were a part heron€.
<br />7. Pt:oe of Leaders Sorority. If Bonawer faits to perform the covenants and agreements contained in this
<br />Deed of Tft>ff4 er if any action of proceedt`ng is commenced which materially atiects Lender's interest in the Pmpetty,
<br />itteitrdittg, trot not limited to, emi~nt domain,. i[tsotvency, coda enforcement, or arrangements or prpceedings involving a
<br />bankrupt or sieeaiet[f, clan Lender at Lender's option, upon notice to Borrower, may nwke such appearances, disburse such
<br />starts and-take srrch action as is necessary to prefect Lender's infercSt, Lrctuding, but not limited t0. disbursement of
<br />raa~nabie attorney's fns. surf entry upon the Property [a make repairs. If Lender required mortgage insurance as ~r
<br />coadirion at tusking the Loan secured try this Decd of Trust, Borrower shall pay the premtums required to rnaintain such
<br />itasursitta`e in eif~t tttHit sudt thrte as the requirement-for such insurance terminates m accordance with Borrower's and
<br />Ltriwri3tenagraementarappi&tabktaw. Bbrrowcr-shall pay the amount of aft marigage insurance premiums in the
<br />mantras prczvtdeii. tsod~ paragra 2 hereof.
<br />amortnh dittbursed- tip Lender ptinuant to this paragraph 7, with interest iherean, shall become additional
<br />iixis+itt of Bearower sacttr~td by this Deed of Trtut. t.;niesx Borrower and Tender agrce ro Wher terms of payment. such
<br />atA@tutB aiwB ba papteMit neon notice from I~ertderto tiorrowcr.requestingpayment thereof, and shag bear interest from the
<br />data xtf ~ ai thn.rate payable from timr to time on outstanding princtpa! under the Note urikas payment of interest
<br />at etch rate would tie carttnrp w appticalrk law, in which event such amounts shalt freer inte:tcst at the highest rate
<br />as 'bIa apirticabt¢ taw. Nothing eantained in this putagra~t 7 shal9 regalia i..endcr tit incur any expen.~ ar take
<br />>%: iaa~ecgaw: 7-.endCt mty audsa +rr roust ttr 6a made reamnabfe erttnes upon and in~tctians of the Praptrty. provide~+
<br />that [.andee shall give Borrower nWiee ptroor' to any srreh inapaction spccifying reasonable carrot ttrcrefor related to i_ender`s
<br />uttttaq to the Ptosatety.
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