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Utvt¢oaw CoveNenTS. Borrower and Lender covenant and agree as follows: ~'t - ~ ~ U 0 614
<br />1. Payment of Prineipl sd talereM. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on anyy Future Advances secured by this Deed of Tntst.
<br />Z. Pecs teR Taas ttM httwraace. Subject to applicable law or to a written waiver 6y Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (heeein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trust, and ground rents on the Property, i[ any, plus one-twelfth of yearly premium installments for hard insurance,
<br />plus one-twelfth of yeazly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />untie to time by Lender on the bazis of assessments and bills and reasonable estimates thereof.
<br />"Phe Funds 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 shall apply the Funds to pay said taxis, assessment:.
<br />insurance premiums and ground rents. Lender may not charge for so 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 spplicabte.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 inttrest on the Funds shall be paid to Borrower, and unless such agreement is made or applicabk law
<br />requires such interest to be paid, Lender shall not be required to pay Burrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an 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 az additional security for the surtu secured
<br />by this Decd 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 razes, 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 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 is mailed
<br />by Lender to Borrower rcgtnxtiog payment thereof.
<br />Upon payment in full of all sums secured by this Deed ut Trust. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph Ig hereof the Properly is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately poor to the sate of the Property ur its acquisnion by Lender, any Funds held by
<br />Lender at [he time of application as a credit against the sums stcured by this Deed of Trust.
<br />3. Appkcatioe of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note end paragraphs 1 and 2 hereof shall be applied ny Lender first m payment of amoums payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nott, Iben to the prinnpal of the Note. and then to inttrest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all ta.tes, assessmtnts and othtr charges. fines and impositions attributable to
<br />the Property which may attain a priority over this Decd 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 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 pnority over this Deed of Trust; provided, that Borrower shall not be
<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, or shall in good faith contest such Tien by, or defend enforcement of such lien in.
<br />legal pproccedings which operate [o prevent the enforcement of the Tien or forfeiture of the Property or any part thereof.
<br />5. Harard trtgraece. Borrower shalt keep the improvements now exisung 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 nut require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Deed of Trust.
<br />The insurance carrier providing the insurance shall be chosen by Burrower subject to approval by L-ender, provided.
<br />that such approval shall not be unreasonably 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 />ittsttranrx carrier.
<br />All insurance policies and renewals thereof shall be in term acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. (.ender shall have the right to hold [he policies and renewals thereof,
<br />and Borrowtr shall promptly furnish to Lender all renewal noGccs and all receipts of paid premiums. In the event of loss,
<br />Borrower shalt give prompt notice ro the insurance earner and Lender. Lender may make proof of loss ii not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in w riling, insurance proceeds shall be applied to restoration or repair of
<br />the Property damagtd, provided such restoration or repair ~s economically feasible and the security of this Deed of Trust is
<br />not thereby impaired. II such restoration or repair is oat economically feasible or d the security of this Deed of Trust would
<br />be impaired. the insurance proceeds shall be applied to the sums secured by this Deed of Trust, with the excess, if any, paid
<br />to Borrower. !f the Property is abandoned by Borrower, or if Borrower Coils to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to se«le a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Properly
<br />or to the stuns 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 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Yropeny is acquired by Leader, all right, title and interest of Borrower
<br />in and to any insurantt policies and m and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shat) pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />6, Prcaervathse ae~ Maialetaace of Property; Leaseholds; Condominiums; Planned Unit Developrttenfs. Borrower
<br />shall keep the Properly in gaud repair and shall not commit waste nr permit impaumem or deterioration of the Properly
<br />and shall comply with the provisions of any kale if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />ar covenants creating or governing the condominium ar 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 development
<br />rider is executed by Borrower and recorded together with this Deed of T"rust, the covenants and agreements of such rider
<br />shall bt incorporated into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the rider
<br />wire a }tart hereof.
<br />T. Prateelioe sf l.esder's Scearity. if Borrower fads w per[orm the covenants and agreements contained in this
<br />Decd of Trust, or if any action or proceeding is commenced which materially affects Lender's intertst in the Property,
<br />including, bW oat limited to, emiirent domain, insolvency, code enforcement, or arrangemenu or proceedings involving a
<br />bankrupt or decedent, then Lender a[ Leitder i option, upon notice to Borrower, may make such appearances. disburse such
<br />scams and take such action az is necessary to protect Lender's interest, including, but not limited to, disburstment ui
<br />reasonabk attorney's fen and entry upon the Prnperiy to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Deed of Tnist, Borrower shall pay the premiums required to maintain such
<br />iitsurotttx N effect imtil such- time as the requiremtnt for such insurance terminates in accordance with Borrower's and
<br />Leodar's written agrcetrien[ or applicabk taw. Borrower shall pay the amount of all mortgage insurance premiums in the
<br />manaer provided under paragraph 2 hereof.
<br />Any amounts disbursed by Leader pursuant to this paragraph 7, with intertat thereon. shag hecome additionat
<br />ittdebtediites of Borrower neared by this I'.Xed of Trust. Unless Borrower and Ixnder agrce to other terms of payment, such
<br />amounts shall fie payable upon notice from L~tider to Borrower requesting payment thereof, and shall hear inttrest from the
<br />data of dhbtrrsesrapat at the rate payable from time to time nn outstanding principal under the Note unless payment of inttrest
<br />at such rate would bt c'oofrary to applicabk law, in wffich went such amounts shall bear interest at the highest rate
<br />parnaasible under applicable taw, NWhing coatained in This yraragraph 7 shat) require Lender [a iritur any expeitse ar take
<br />any riCGOri hermmdcr.
<br />L laga[tlars. Leander may make or carne to bt made rcssonable entries upon and inspections of the Properly, provided
<br />that L,errdet shelf give Borrower notice prior to any suet[ inspeetian specifying rcuonabk cause tbtrefor related to Lender's
<br />idtett6at in the ProtwrtY.
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