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Uwt'oam CovrrtanTS. Borrower and (..ender covenant and agree as follows:
<br />L Payaaeat of Principal ad InlereM. Borrower shall promptly pay when due the principal of and interest nn the
<br />indeMednen evidenced by the Note, prepayment and late charges as provided in the Note, and the princrpal of and interest
<br />on any Future Advances severed by this Deed of Trust.
<br />i FottttM for Tueaatrti lara~aaee. Subject to applicable law or to a written waiver by lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, omit the Note is paid in full.
<br />a sum (herein "Funds"] equal to one-twelfth of the yearly razes ant assessments which may attain priority over this
<br />Deed of Trust, and ground rents 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, if any, all as reasonably estimated initially and from
<br />time to time by Lender on rho basis of assessments and bills ant reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a FeJerrl or
<br />slate agency (including Lender i( Lender is such an institution). Lender shall apply the Funds to pay said fazes, assessments?
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing card account
<br />or verifying and compiling said asxssments and bills, unless Lender pays Borrower interest on the Funds ant applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time n( execution'of this
<br />Decd of Trust [hat interest on the Funds shall be paid to Borrower, and unless such agreement is male or applicable-law
<br />requires such interest to rte paid. Lender shall not be regmred to pay Borrower any rmerest or carnings~nn the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and Jehits 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 DeeJ of Trust.
<br />If the amount of the Funds held by Lender. together with the future monthly installments of Fundx payable prior to
<br />the drie dates of fazes, assessments, insurance premiums ant ground reins, shall exceed the amount required to pay said lases.
<br />assessments, insurance premiums and ground rents as they FaII 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 amnum of the -Funds
<br />held by Lender shall not Ire 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 Jate notice iS. mailed.
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by thrs DeeJ of Trusts Lender shall promptly refund to Borrower any Fttnds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender- Lender
<br />shall apply, no later than immediately prior to the sale of the Property or 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. Application of Paytaents. Unless applicable law provides otherwise, all payments recerved by Lender under the
<br />Note ant 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 w interest payable on the Note, then to the principal of the Notc. and then to interest and
<br />principal on any Future Advances.
<br />4. Chas6es; Liens. Borrower shall pay all taxes, assessmems and other charges. fines ant mtpositions attributable to
<br />the Property which may attain a priority over this Deed of Trust, and IeaseholJ payments or ground rents, if any, in the
<br />manlier 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 priority over this Deed n( Trust; prowdcJ, that Borrower shall not be
<br />required io discharge any such lien so long as Borrower shaii agree in writing to the paymem of the obicganon secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such hen 6y, or Defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hattard lasvraoee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extendeJ coverage", ant such other hazards as lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shah not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured 6y this Decd of Trust.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject fn approvut by [.ender: provrdeJ.
<br />that such approval shall not be unreasonably withheld. A!I premiums on insurance policies shall he 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 />imurance carrier.
<br />All insurance policies and renewals thereof shall be m form acceptable to Lender and 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 (hereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of pelt premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier ant Lender Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair of
<br />the Property damaged. provided such restoration or repair is economirdly feasible and the security of this DeeJ of Trust is
<br />no[ thereby impaired. If such restoration or reparr is not economically feasible or it the security of this Dced of Tnrst would
<br />be impaired, the insurance prmceeds shall he applied to the sums secured by this Decd of Trust, with the excess, if any, paid
<br />to Borrower. !f the Property is abandoneJ by Borrower, or if Borrower (ails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance earner ntfers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at 1_ender's option either to restoration or repair of the Properly
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall riot extent
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount el
<br />such installments. If under paragraph 18 hereof the Property 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 resulting from damage to the Property prior to the sale
<br />or acquisition shall 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. Preser.afion and Matotenance of Property; Leaseholds; Condominiums; PlanneJ Unit llevelopmems. Borrower
<br />shall keep the Property m good rcpav and shall not comma waste or pcrmu impairment ur deterioration of the Proprrly
<br />and shall comply with the provisions of any lease if this Deed of Trust is tin a leasehold. li this Deed of Trust rs on a unit in a
<br />condominium or 8 planned amt development, Borrower shaii p?dorm all of Borrower's obligations tinter the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-lows and regulations of the
<br />condominium or phoned amt development, and constituent dcxuments. If a rnnJominium or planneJ unit development
<br />rider is executed by Borrower and recorded together with This Deed of 7nrst, the cvvenants and agreements nl such rider
<br />shall be incorporated into and shaii amend and supplement the covenant, ant agreements of this Deed of l'ruxt as if the rider
<br />were a part herwl.
<br />T. Ptrotedioo of [.ender's Security. If Borrower Fats to perform Hte covenants and agreements contacted in thi.
<br />Decd of Trust, or if any action nr proceeding is commenced which matcnalfy slicers Lender's interest in the Property,
<br />including, but not limited to. eminent domain, insolvency. code enforcement, w arrangements or proceedings im~olvmg ,;
<br />bankrupt or decedent, then bender at Lender's option, upon notice to Borrower, may make such appearances, dishurse such
<br />sums and take such action as is necessary to protect Lender inieresi, including. but oat limited to, dishursemen~ of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insirance ati a
<br />cottditian of making the loan secured by this Deed of Trust, Borrower shall pay the premiums reyurred to maumam such
<br />insorattce in effect until such time as the requircrnent ksr such insurance terminates in accordance with Borrower's :mJ
<br />Lcttder's written agreement or applicab#e law. Borrower shall pay the amount of all mortgage insurance premiums in thn
<br />maruter prav;ded under paragraph 2 hereof.
<br />Art atttottnls disbursed by Lender pursuant to this paragraph 7, with interest thereon, shat! become additional
<br />indebtedness of Borrower secured by this Deed of "(rust. finless 8nrrawer ant Lender agree ro other tcrnu of payment.:.uch
<br />atnoupts Shq(I.6e payable upon notice from Lender to Harrower requesting paymem thereof, and shall ;scar interest from nc~
<br />date of dlsbPrscnten4 at the ,tats paynb#a from time io time ono _t=landing principal under the N=_s[e unless payment of interest
<br />of -such rat4wnuld tse contrary-to applicable law, fn which event such amounts shall hear interest a; the highest rate
<br />permiaaible under applicable taw. Nothing eantained in this paragraph 7 shaii require fender to incur any expense ar take
<br />any aetiufi hereunder.
<br />14. IrMpectias. Lender may make yr cause to be mttde reasonable carries upon sort }nspectmns nr the Property, pr~aded
<br />that heoder atsalt eve Borrower notice pror to any such inspez:u on specifying reasonable cause rbcretn~ rein <i u, t ender .
<br />ituet~r#t in the ProoenY.
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