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<br />$4 ---~-G056~
<br />Ur+troatu CovflntetvTS. Borrower and Lender covenant and agree as follows:
<br />1. Psymeal of Psitteipl ud IMerW. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by [he 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 Trrst.
<br />2. Pettit far Taws last( lanraact. Subject to applicable law or to a written waiver by Lettder, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest arc 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 over this
<br />Lhed of Ttvst, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />plus Otte-twslflh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time 6y Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shat! 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 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 Funds, 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 Lender may agree in writing at the time of execution of this
<br />Deed of Trust that interest nn the Ftrnds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shah not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />sha0 give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpox 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 />[f 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 they tall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. ]f the amount of the Funds
<br />held by Lender shall not be sufTicient 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 is mailed
<br />bq Lender to Borrower requesting payment thereof.
<br />Upon payment in full of ail sums secured by thrs Deed of Trust. i.ender shall promptly refund to Borrower any Funds
<br />held 6y Lender. If under paragraph 1 B hereof the Property n sold or the Property rs otherwise acquired by Lender. 1_ender
<br />shall apply. no later than immediately print 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. Appkeatba of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and < hereof shall lye applred 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 w the princrpal oC the Note. and then to interest and
<br />principal on any Future Advances.
<br />d. Chalpes; Lkes. Borrower shall Tray all taxes. assessments and other charges, fines and nnposnions attributable to
<br />the Property which may attain a priority over this Lamed of Trust, and leasehold payments or ground rents. if any, in the
<br />msatur provided under paragraph 2 hereof or, it nut paid in such manner, by Borrower making payment, when due, directly
<br />to the payee thereof. Borrower shall promptly furnish to Lender all nouccs of amounts due under this paragraph. and in the
<br />event Borrower shall make payment directly. Burrower shell promptly turmsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien whrch has pnonty over this Ueed u[ Trust: provided, that Borrower shall not he
<br />required to discharge any such lien xo long as Horrow•er shall agree in writing to the payment of the ubligauon secured by
<br />such lien in a manner acceptable to Lender. or shall rn good Earth contest such hen bv, or defend enforcement of such hen m.
<br />legal pproceedings x•hich operate to prevent the enforcement of the hen or forEeiurre of the Property or any hart thereof.
<br />5. fllarad laaraaee. Borrower shall keep the emprovemems 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 tender may require
<br />and in such amounts and (or such periods as (.ender may regwre: pmvrded, that Lender shrill not require that the amount of
<br />such coverage exceed that amount of coverage requrred to pay the sums secured by this Deed of Trust.
<br />The insurance carrier providing the insurance shall lye chosen by Borrower subject to approval by I ender. prov~deJ.
<br />that such approval sha[I no[ be unreasonably withheld. AIt premrums on insurance policies shat! he paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Bortower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals themot shall be m form acceptable to tender anti 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 Lender all renewal nouccs and all receipts of prod premmms. In the event of loss,
<br />Borrower shall give prompt nonce to the insurance ean~ier sad Lender. (.toiler may make proof of loss rf not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower ut herwrx ague in wrung, insurance proceeds shall be applied to re,toration or repair of
<br />the Property damaged. provided such rtsrorauan or repau i, tconom~c:dly feasible and the security of this Deed of Trust is
<br />not thereby rmpaircd. if such restora[inn ur repau rs nut economically (eusrblc or d the security of this Ueed of Trust would
<br />be imparted, the insurance proceeds shalt b:: applied to the sums secured by this Dcetl of Trust, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borruw~er. or if Borrower fails w respond to Lender within 30 days from the
<br />data notice is mailed by Lender to Borrower that the insurance earner offers to settle a claem for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option tnher to restoration or repair of the Property
<br />or to the sums secured 6y [his Decd of Trust.
<br />Unless Lender and Bortower otherwise agree in wrung, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly instaltments referred to m paragraphs 1 and 2 hereof or change the amount of
<br />sash installments. If under paragraph f B hereof the Property is acquired by Lender, all right, title and interest u[ Borrower
<br />in ancf to any insurance polities and in and to tfie proceeds thereat resuhing from damage to the Property prior to the sale
<br />or acquisition shalt pass to Lender to the entent of the sums secured by This Deed of Trust immediately poor to such sale ur
<br />acquisition.
<br />6. Pnservaliaa >~ Maiateaaace of Properly: Leaseholds; t.'ondominiums; Planned Uoil Developments. Burrower
<br />shall keep the Yrnperty in gwnl repau sad shall not a+mmn wade ar penn~t rmpaurnent or dettriorauon of the Properly
<br />and shall comply with the provisions ul any lease if Ihrs Deed of Trust rs un a leasehold. If this Deed of Trust is un a unit in a
<br />condominium or a planned unit deveiupmem, Borrower shall pecfurm all of Borrower's obligations under the declarauon
<br />or cove-Hants creating or governing the cundcymrnium or planned amt developmen[, the by-laws and regulations of the
<br />wndominium or planned unit development, and consutuem documents. If a condominium or planned unit dcve)opment
<br />rider is executed by Borrower and recorded together with thrs Deed of Trust, the covenants and agreements of such rider
<br />shall be iryeorpotated into and shall amend and supplement [he covenants and agreements of this Deed of Trust :u d the rider
<br />were a part hereof.
<br />7. Rallelioa of Ledet'r Seearity. If Borrower fads to perform the covenants and agreements comamed m this
<br />Deed of Trtyst, or if any action or proceeding is commenced which materially affects Lxnderc interest in the Property,
<br />including, but not limited to, emirxai domain, insolvency, code enforcement, ur arrangements or proceedings imrolnng a
<br />banktuptor decedent, then Leader at Lender's apuon, upon notice to Borrower, may make such appearances. disburse such
<br />soma and take such action as is necessary to protect Lender's interest, including, but nut limited m, disbursement of
<br />rearatrabk nttorttay's Ears; and entry upon the Property to make repairs. if lender requirod mortgage insurance a, a
<br />condiGan of mailing the loan secured by this Deed of Trust, Borrower shag pay the premiums required to maintain such
<br />irowr'arst.'a in effect until such lhtte as the requirement for such insurance terminates in accordance wnh Borrower's and
<br />Lertder'a written agreettaent or applicable law. Borrower shah pay the amount at all rrxrrtgsge instuance premiu+ns in the
<br />manna provided uttclcr para~tspit 2 hereof.
<br />Artyy attawals 8inbutaed Iry• Lender pursuant to this paragraph 7, wuh interest thereau, shot( be.~ome addinonal
<br />irtdebtedaeµ of Borrower securul by this Dad of Trust. (?nless Borrower and Lender agree to other terms ut payrnent, such
<br />amostpts shall 6e payable ypon notice from Lender to Borrower requesting payment thereof, and shall bear mterrst from she
<br />date of dilbltnarnatai at the tart payable from time to Circe on uuistanding princrpal under the Nore unless paYmem of interest
<br />~at such rate woujd be contrary to applicable law. in which event such amounts shag bear interest at the highest rate
<br />pertniasibk tptdet app[itabtt law. Nothing contained in thrs paragraph 7 shall require tender to tntux any expense ar take
<br />any atttiaft iti7FaltltdEr',
<br />~ •i.ettder may make yr cause to be made rcascrnalyle entrees upon aryl rnspecuons of tlye Property, pruvidecl
<br />rliai Lender shall give &yrrxrwer twliee error to atyy such itvspecticyn specdying rcasonahk cause therefor related to Lender's
<br />rntereti in the Pr»nrrty.
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