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<br />Ut+tFOanr CovErietvTS. Borrower and lender covenant and agree as follows:
<br />i. Payment of Principal and Inhteat. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced_by theNote, prepayment-and late charges as provrded in the Note, and the principal-of and interest
<br />on anyy Future Advances secured by this Deed of Trust.
<br />2. Fonds for Tara-and fnearaeee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly instaBmeMs of principal and interest are payable under [he Note, until the Note is paid in frill,
<br />a-sum therein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trust, and ground tents 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, iC any, all as reasonably estimated initially and from
<br />time to lire by i °.^.dsr on the basis of as_~sments and t±iils and reasonable estimates thereof..
<br />The Futtds shall be-held 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 shalt apply the Funds to pay said taxes, assessments.
<br />insurance premiums and ground rents. Lender may not charge tar sq holding and applying the Funds, 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 shall 6e paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to 6e paid, fender shat{ not be required to pay Borrower any interest or earnings on the Funds. [.ender
<br />shall give to Borrower. without charge, aq 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 !axes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay Bard taxes,
<br />assessmeri[s, insurance premiums and ground rents as they Tall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower nn 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 necessary to make up the deficiency within 30 days from the date notice rs mailed
<br />by Lender to Borrower requesting paymenf thereof.
<br />Upon payment in fah of al! sums secured by this Deed of Trust, Londe: shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by lender, lender
<br />shalt apply. rto Inter than immediately prior to the sale of the Property ur 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. Appfleation of Payments. Unless applicable taw provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first m 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 the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges: Liens. Borrower shall pay all taxes. assessments and other charges. fines anti impositions anributuhle to
<br />the Property which may attain a priority over this Deed of Trust. and lcasehald payments or ground rents, if any, in the
<br />mariner provided under pazagraph 2 hereof or, if not paid in loch manner, by Borrower making payment, when due, directly
<br />to the payee thereof. Borrower shall promptly furnish to Lender all notices oC amounts due under this paragraph. and in the
<br />event Borrower shalt make payment directly, Borrower shalt promptly furnish to Lender recetpts evidencing such payments.
<br />Borrower sha{I promptly discharge any Tien which has priority over [his Deed of Trust: provided. that Borrower shall not be
<br />required to discharge anV such lien ui long ae Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shat! in good faith comes( such Tien 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 ar any pan thereof.
<br />5. !locoed insurantt. Borrower shall keep the rmprovemems now e>isting 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: provided, that Lender shall not require that the amotmt of
<br />such coverage exceed that amount of coverage rcyuired to pay the sums secured by this Deed of Trust
<br />The insurance carrier previdiag the insurance shall he chosen by Borrower subject to approval by lender; provided.
<br />that such approvsl shall not be unreasonably withheld- All premiums on insurance policies shall he paid in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due. directly to the
<br />insurance carrier.
<br />Aft insurance policies and renewals thereof shah be in form acceptable to Lender and shalt include a standard mortgage
<br />cause in favor of and in form acceptable to Lender. Lender shalt have [he right in hoW the policies and renewals thereo[,
<br />and Borrower shall promptly furnish to Lendet ati renewal notices and aIi receipts of paid premiums. Li the event of Loss,
<br />Borrower shall give prompt notice to the ensnraner carrxcr and Lender- L ender may make proof of loss iC not made promptly
<br />by Borrower.
<br />Unless Lender and 8orroµer otherwtse agree m wrumg, insurance proceeds ahali be applied u> resforauon or repair of
<br />the Property damaged, provided retch t>staratian or repatr iv ceonomieally feasible and the security of this Dee+i nr` Tnist is
<br />not thereby impaired. tf such resrorauon ar repair is not economically feasble or iF the security of this Deed of Trust would
<br />be impaired, the insurance proceeds shall be applied to dte sums secured by this Deed of Trust, with the excess. if any, paid
<br />to Borrower, If the Property is abandoned by Harrower, or if Borrcnvcr fails to respond to Lender withtn 3t) days (coin the
<br />date notice is mailed 6y Lender to Borrower that the insurance carrier offers to settle a claim for insurance Fxnefits. Lender
<br />is authorized to collect and apply the insurance proceeds a[ Lender's option either w restoration nr 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 postpone the due date of the monthly installments referred to in paragraphs i and Z hereof or change the amount of
<br />such installments. If under paragraph [t3 hereof the Properq• is acyuired by (.ender, all right, title and interest of Borrower
<br />in and to auy insurance policies and in and to the proceeds thereo[ resuhing from damage to [he Property prior a, the sate
<br />nr acquisition shall pass to Lender to the extent of the sums secured by this Deed of Crust immediately prior to such sale or
<br />acquisition,
<br />6. Preservation and INainteaance o[ Property; Leaseholds; (:ondomininms; Planned Unit llevelopmenis. Borrower
<br />shah keep the Property in gtwd repair and shall not coconut caste or pe rout impairment or deterioration of the Property
<br />and shall comply weth dre provisions nl any lease tf this Deed of Trust is on a leasehold. It this Deed of 77ust is nn a trait in a
<br />candaminium or a planned unit development, Borrower shall pedonn alt of Bon~ower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-taws and regulations n( the
<br />condominium or planned unit development, and constituent ducmnents. If a condominium or planned unit development
<br />ride[ is executed by Borrower and recorded together with this Deed of "Crust, the covenanu and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements nt this Decd at Trust as if the rider
<br />were a part hereof.
<br />7. Protection o[ [.enders Security. If Borrower fai15 to perform the covenants 'nJ agreements iantained in this
<br />Deus of Ttvsi, nr if soy action or proceeding is commenced whtch materittlly affects Lenders interest in the Propery.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pnxeedings invnlvtng a
<br />baukrupt or decedent, then Lender at Lender's option, upon noire to Borrower, may make such appearances, disburse such
<br />sums. and take Bitch action as is necessary to prote,^,t Lender's interest, including but not limited [o, disborsemen4 at
<br />reasanabte sttarrny's far and entry upon the Properly to make repairs. If !,ender required mortgage instrance us a
<br />ccsitdetion of making the loan scoured by this Deed of Ttvst, Borrower shaif pay the premiums rcyuired w maintain such
<br />i36§uratrix in e#tett until such Lima as the requirement for such insurance terminates ut ascnrdance with Borrower's and
<br />Ltndei's written agreetttatei or applicable law. Harrower shall pay the amount of alt mortgage insurance premiwns in the
<br />manner provided. undo paragraph 2 hereof.
<br />Any arnuuttts- disbuisext by Lendet putsaant to this paragraph 7, with i.~tcrest thereon, shall become addiuonal
<br />ititiCittedtiels of Harrower sar:ured ay this Deed at Trust. Unless Borrower and Lenticr agree to other terms of puymm~t, such
<br />anxwnfz shall be payable upon notice fxnm Lender to Borrower requesting paymem thereof, and shsB tzar interest from the
<br />daft of d~Mttaement at the.tate payable from limo to time on outstanding principal under the Nate ureters payment oi` interest
<br />- at such rate would be contrary to appiicaMe tow, In which event such amounts shah bear interest at the highest rate
<br />pet'miailfk rtndcr app!rcabk law. Nolhing eantained in this paragraph 7 shall require Lender to incur any expense or take
<br />aaY action hercimtier.
<br />;,- ftttrPaction. Leridecmay make cx cau~ 4a ba made rensanabk entries upon and inspections of the Property. provided
<br />teat I.sttdar shailgivc Borrower notice peace to any such inspection spes:ifying reasonable cause therefor relati`r! to Lender's
<br />IafsutaN i+t-tfte P1raDRttY.
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