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<br />UNIFORM COVENANTS. Borrower and Ixnder COVCOanl and agree a5 follows:
<br />1. Paytttent of Principol and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and Iaie charges as provided in the Note, and the principal of and interest
<br />on anyy Future Advances secured by this Deed of Trust.
<br />2. Fonds for Taaos and Insaraace. Subjat [o 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, 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 />Deed of Trust, and grourtd 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 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 such an insn[ution). Lender shall apply the Funds [o pay said taxes, assessments.
<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 applicable-law
<br />permits 1-ender 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 be paid to Borrower, and unless such agreement is made or applicable law
<br />t requires such interest to be paid, Lender shall 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 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 [n
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the.amount required'to-pay saidtaxeg,.
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Bdrrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the' amotin[ of- fhe Fiinds-
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground loots as-they fall°due:
<br />Borrower shalt 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 regttestiog 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 Lender. If under paragraph I S hereof the Property 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-Funds held~.by
<br />Lender a[ the time of application as a credit against the sums secured by this Deed of Trust. -
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received- by Lender under Ihe-
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amountrpayable to Lender-by-Botrower
<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. Char6es; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable-to
<br />the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any, iq the
<br />manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whemdue, 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 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 lien by, or defend enforcement of such Tien in.
<br />legal proceedings which operate to prevent the enforcement oC the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing 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 iv such amounts and for such periods as Lender may require; provided, that Lender shall not require. that the-amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Deed of Trtist.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be 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 />iosurance cattier. -
<br />AII 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 hold the policies and renewals thereof:
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of Toss„
<br />Borrower shall give prompt notice to the insurance carrier and Levder. 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 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 [hereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would
<br />he 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. If the Property is abandoned by Borrower, or if Borrower fails to respond [o 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 benefi{s, Lender
<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 proeeeds to principal shall no[-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 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. Preservation and Maiofenance of Properly; Leaseholds; Condominiums; Planned Unil Developments. Borrower
<br />shalt keep the Property in gaud repair and shall not commit waste or permit impairment or deterioration tf the Property
<br />and shall comply with the provisions of any lease if this Ueed of Trust is on a leasehold. [f 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 T"rust, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants 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 Lenderi interest in the Property.
<br />including, but not limited to, eminent domaiq insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon votive to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lendei s interest, including, hot not limited to, disbursement tf
<br />reasonable attorney's fees and emry 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 required to maintain such
<br />insurance in effect until sus6 time as the requirement for such insurance terminates in accordance with Borrowers and
<br />Lender's written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the
<br />manner provided under paragraph 2 hereof.
<br />Any amounts disbursed by lender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of paymem, such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall hear interest from the
<br />date of disbursement at the rate payable from time tt time an outstanding principal under the Notc unless payment of interest
<br />at such rate would lie eovirary to applicable law, in which event such amounts shat! bear interest at the highest rate
<br />permissible under applicable law. Nothing contained in this paragraph 7 shat! require Lender to incur any expense or take
<br />any cation hereunder.
<br />>!. Insptetioa. Lender may make tr cause tt he made reasonable nuries upon and mspecuovs of the Property, prorideai
<br />that Linder shall give Burrower notice prior to any such inspection specifying roast natrle ::cruse therefor related io Lender's
<br />sntcrest in the Fxooertv.
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