|
<br />v~~.,~.~ jlt)09~3
<br />!!vitun s' t'ovcrrn N~ts. Borrower anJ Lender covenant and agree as follows:
<br />1. Payment of 1'rinripal and Interest. 8arrawer shall promptly pay when due the pnncipal of and inicre~l on the
<br />mocMednes evidenced by the Note, prepayment and lute charges as pmvtded m the Note, and the principal of and inte«st
<br />on env Funuc A,Isances reacted by Ibis Ueed of "1 nnl-
<br />2. Fends for 9"axes end Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />tr. 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 !herein "Funds'1 equal to one-twelfth of the yearly taxes ~md assessments which may attain priority over this
<br />Decd of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premwm installments for hazard insurance.
<br />plus one-twat (th of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />"the 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 uich an institution). Lender shall apply the Funds to pay said taxes. assessments,
<br />insurance premiums and ground rents. Lender may not charge (or 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 applicable law
<br />permits I ender io make such ~, charge Borrower and Lender may agree in writing at the lime of execution of this
<br />Deed of "crust that imerest on the Funds ah~dl he paid to Borrower, and unless such agreement is made or applicable law
<br />requiter such interest to be paid, Lender shad) not be required to pay Borrower 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 as additional security for the soma-ccured
<br />by this Decd of Trust -
<br />If the amount of the Funds held by I_cnder. together with the future monthly installments of Funds payable prior to
<br />the due dates of taxce, assessments, insurance premiums and ground rents, shall exceed the amount required to pay saidtaxes,
<br />assessments, insurance premiums and ground reins as they fall due, such excess shall be, at Borrower's option, either.
<br />promptly repaid to Borrower or credited to Bm~rower on monthly installments of Funds. If the amount of the Funds
<br />held by 1_ender shall not he suBicient 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 requesting payment thereof. -
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds
<br />held by !..ender. If under paragraph I g hereof the Properly is sold or the Property is 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 Fonds held by
<br />Lender at the time of application as a credit against the sums secured by [his Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I antt 2 hereof shall he applied by Lender first in 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. Charxes; Liens. Borrower shall pay all taxes. assessmems and other charges, fines and impositions attributable to
<br />the Property which may attain a priority aver this Deed of Trust, and leasehold payments or ground rents, if any, in the
<br />manner provided under paragraph 2 hereof ar, 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 aver this Deed of Tntsq 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 gaud faith contest such lien by, 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected-on the-PropertyinSuted:
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender ,may'-requite --
<br />and in such amounts and for such periods as 1_ender may require; provided, that Lender shall oat require that the-amounl._of -
<br />such coverage exceed that amount of coverage rcgwred to pay the sums secured by this Deed of Trust. - -
<br />The insurance carrier providing the insurance shall be chosen b}' Borrower subject to approval by Lender: provided; -
<br />that such approval shall no[ be unreasonably withheld. All premiums on insurance policies shall-be paid in the marine[ --
<br />provided coder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to~the:-
<br />insurance carrier. - -
<br />All insurance policies and renewals thereof shall be in 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 held the policies and renewals-thereof.
<br />and Borrower shall promptly furnish to Lender all «newal notices and all «ceipts of paid premiums. In the event--of-toss;
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made-Prtimptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwtse agree in •sriung, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust:is
<br />not thereby impaired. If such restoration or repair is not cc~romically feasible or if the security of this Deed of Tntsiwotild-
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Ueed of Trust, with the excess, if any; paid.
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits,.I,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 />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph i8 hereof the Property is acquired by Lender, all right, title-and interest ofBorrower~
<br />in and to any insurance policies and in and to the pra.eeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass [o Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maialenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in gaud repair and shall oat comma waste or permit impairment ar deterioration. of the Property
<br />and shall comply with the provisions of any lease 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 />or covenants creating or 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 development
<br />rider is executed by Borrower and recorded together with this Deed of Trust, the cavenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the cavenants and agreements of this Deed of Trust as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's imerest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon natice to Borrower, may make such appearances, disburse such
<br />sums and Wke such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums reyuired to maintain such
<br />imurtutce in effect until such limo as the requirement for such insurance terminates in accordance with Borrower's and
<br />Lender's written agreement or applicable law. Borrower shall pay the amount of alt mortgage insurance premiums in the
<br />manner provided under pazagraph 2 hereof,
<br />Any amounts disbursed 6y L.ender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />indebtedness of Borrower secured by this Deed oC Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shalt be payable upon natice from Lender to Borrower requesting payment thereof, and shall bear interest from the
<br />date of disbursement at [he rate payable from time to time on outstanding principal under the Nee unless payment of interest
<br />at such rate would be contrary to applicable law, in which event such amounts shat! bear interest at the highest rate
<br />permissible under applicable taw. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take
<br />any action hereunder,
<br />8. faspection, Landon may make or cause to be made reasonable entries upon and mspceuens of the Property. provided
<br />ahaa Lender shat! give Borrower natice pear co any such inslx'.caan apea(ying «asannble wuar tharetor «latcd ro Lenders
<br />mtereeY ut the Prots¢rty.
<br />
|