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<br />Utvta:oant Covexerirs. Borrower and Lender covenant and agree as follows:
<br />1. Prymeet of Principal arsd Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepaymrnt and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Deed of Trost.
<br />2. Feeds for Taurasd Iesmasce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender nn the day monthly instatlments of principal and interest are payable under the Note, until 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 aver this
<br />Deed of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premium instaiimenf.~ for hazard insurance.
<br />plus one-twelfth of yearly premium installmerts for mortgage insurance; if any, all as reasonably estimated initially and from-
<br />nme to time by Lander on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be hdd in an institution tfie deposits or accounts of which are insured or guaranteed by a Fedeial-.or
<br />state agency (including Lender if Lender is such an tttatitution). Lender shall apply the Funds to pay said taxes, assessments:
<br />insarance premiums and ground rents_ Lender may not charge for so holding and applying the Funds, analyzing said account
<br />or verifying and competing 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 shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shat) not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an_annual auounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit [o the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this Ikked of Trust.
<br />If the amount of the Funds herd by Lender, together with the future monthly installments of Funds payable prior to
<br />the dve 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 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 ro pay taxes. assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount necessarv to make up the deficiency within 30 days from the date notice is mailed
<br />6y Csnder to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust. Lender shat! promptly refund to Borrower any Funds
<br />held by Lender [f under paragraph IS hereof the Properly is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply. no later than tmmediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lendtr at the time of application as a credit against the sums secured 6y this Deed of Trust.
<br />3. Applicafion of Payments. Unless applicab(t law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nnte. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charxes; Liens. Borrower shalt pay ail 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 shat! promptly furnish m [.ender all notices of amottats due under this paragraph, and in the
<br />event Borrower shat! make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Harrower shalt promptly discharge any Tien which has priority over this Oeed of Trust; provided. [hat Borrower shall not be
<br />required to discharge any such Iten so long as Aorrower 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 faith conrest such lien by, ur defend enforcement of such lien in.
<br />legal proceedings which operate io prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Harard itrsaraoee. 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 Lender may require: provtded, that Lender shall nut require that the amount of
<br />such coverage exceed that amount of coverage requtred to pay the sums secured by this feed of Tnrst.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject [o approval by Lender; provided.
<br />that such approval shall not be unreasonabty 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 />Ail insurance policies and renewals thereof shall be in form acceptable to 1-ender and shall include z s[anda[d mortgage
<br />clause in favor of and in form acceptable to Lender. !_ender shall have [he right to hold the policies .rod renewals thereof.
<br />and Borrower shalt promptly furnish to Lender alt renewal notices and all rece+prs of paid premiums. In the event of toss,
<br />Borrower shelf give prompt notice to the insurance farrier anJ Lender. Lender may make proof of Toss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in uriung, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged. provided such restoration or repair ~c eennomically feasible and the security of this Deed of Trust is
<br />nor +~«by ~Mpaired. !f such •••~•••rauen nr re^s•~ i9 °,.• ..^..°. ~ °..__ - ~ n(.,+,:.; n _ _
<br />,,.•......,,,. m:rall• bk or d the scctra~ ,. .~rcd of ~', usf wnitid
<br />be impaired, the insurance proceeds shall be applied to the sums soured by this Dead of 'Crust. with the excess, if nny, paid
<br />to Borrower. If the Property is abandoned by Borrower, or i[ Harrower fads to respond to Lender within 30 deys from the
<br />date notice is mailed'oy Lender to Borrower that the insurance carrier otftrs to settle a claim for insurance benefits, !.ender
<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 shall not extend
<br />nr postpone the due date of the monthly installments referred to in paragraphs 1 and Z hereof nr change the amount of
<br />such installments. if under paragraph I K hereof the Properly 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 resuhing Iron damage to the Property prior to the salt
<br />or acquisition shall pass to Lender to the extent of the Burns secured by this Deed of Trust immediately prior to such sale or
<br />acqutsition.
<br />6. Preservation and Maintenance of Property; I,raseholds; Condominiums; Planned Unil Developments. Borrower
<br />.halt keep the Property in good repair and shalt not rancour waste or perms impairment or Jc[erioruimr of the Properly
<br />and shall comply with the provisions of an}• Lease if this Deed of Trust is on a Veasehold. If [his Deed of Trust is nn a unit in a
<br />condominium ur a panned unit development, Borrower shall petiorm all of Borrower's obligations under the declaration
<br />ur covenants mating nr governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit developmem
<br />rider is executed by Borrower and recorded together with this Deed of Trust, [he covenants and agreements of sofh rider
<br />shat{ be incorporated into and shall amend and supplemem the covenants and agreements vi this Deed of Trust as if the rider
<br />Overt a part hereof.
<br />7. Protection of header's Security. If Borrower tails to perform the covenants and agreements contained in this
<br />Deed o[ Taut, or if any action nr proceeding Is commenced which materially affects Lender's interest in the Properly,
<br />including, but oat limited a>, eminent domain, insolvency, code entarccmtnt, or arrangements nr proceedings involving a
<br />bankrupt or decedent, thin Lender at tender's option. upon notice to Borrower, may make such appearances, disburse such
<br />stems and take such action as is necessary to protect Lendtr i interest, including, but not limited to, disbursement of
<br />reasonable attotnty's fees and em ry upon the Property to make repairs. If bender required mortgage insurance ^s a
<br />condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain sorb
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Hnrrnwer's and
<br />I~t~er's written agreerent nr applicable law, Borrower shall pay the amount of all mortgage insurance preovums in the
<br />mentor provtded under paragraph 2 hereof.
<br />Any amounts disbutstd by Lender pursuant to this paragraph 7, wiitt intcresi thtreon, shall hecorrte additional
<br />irrdebisdnrss of Borrower secured by this deetf of Trust- Unless Borrower and Lender agree- to afher terms of payment, such
<br />atrtottnts shall be payattle upon notice tram !.ender to Borrower requesting payntent thereof, and shall hear interest Y'rnrn the
<br />dale of-tit+butsatrtent ai the rate payable fiom time to time on outstanding principal under [heNote unless payment of interest
<br />ak such rata would be contrary to applrcabk law, in which event such amounts shall bear h+tertst at tht highest rats
<br />parmiasfltla ender applieabk law, Nothing comained in this paragraph 7 shall requite tender to incur any txpense or take
<br />any action lrereuudet
<br />6, flgiaNiart. !..ender may make ar cttuse to be made reas<mable entries upon and tnspectinns of the Property, pn?vidai
<br />that tender shall give Harrower notice prior in any such itnpertian specifying esasonahle rauxt thtrtfar related to i.cneltr's
<br />+nter~t in the Proaarty.
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