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<br />UvtroaH Covertevi~s. Borrower anJ Lender covenant and agree as follows:
<br />t. Payment of Principal and Interest. &+r rawer shall promptly pay when due the principal of and imerest nn the
<br />mdebmdne+s evulenccd by the Note, prepayment and lore charges as provider) m the Note. and the principal of :cod interest
<br />nn any Future ;1J+nnces ~eaircd by this Used n(7 rust.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to :t written waiver by Lender, Borrower shall pay
<br />to lender nn the d:ry monthly installments of principal ;cod interest are payatrle under the Note, until the Note is paid in full,
<br />a sum (herein "Funds•''1 equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Decd of Trust, anJ 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 w time by Lender on the basis of assessments and lilts 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 institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums anJ ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account
<br />or verifying and compiling said assessments and lilts, unless [.ender pays Borrower interest on the Ftmds and applicable-law
<br />permits I ender to make such a charge. Dorrower and Lender may agree in writing at the time of execution of this
<br />DeeJ of Tnist that interest an the Funds ehall he paid to Rorrower, end unless such agreement is made or applicable law
<br />requires such interest to he paid. Lender sh;dl not be rcyuired to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of [he 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-sutns'secured'
<br />by this DeeJ 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 taxes. assessments, insurance premiums and grounJ rents, slat) exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and grotmd rents as they tall due, such excess shall be. at Borrower's option; either .
<br />promptly repaiJ 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 r-~ 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 artyFinds:-
<br />held by !.ender. If under paragraph I g hereof the Property is sold or the Property is otherwise acquired by LendeG Lender
<br />shall apply, no later than immediately prior to the sate 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 Payments. Unless applicable law provides otherwise, all payments received by Lender- under the
<br />Note and paragraphs I and 2 hermf 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. assessments anD other charges, fines and impositions attributable'ta~-
<br />lhe Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any, in.tht
<br />manner provided under paragraph 2 hereof or, if not pail 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 />even[ Borrower shall make paymem Directly, Borrawer shall promptly furnish to 1_ender receipts evidencing such--paymentsa
<br />Borrower shall promptly discharge any {ien which has priority over this Deed of Tnist; provided, that Borrower shall not be
<br />required to discharge any such lien so Tong as Borrower shall agree in writing m the payment of the obligation secured.-by
<br />such lien in a manner acceptable to Lender, or shall in good faith coolest such lien fay, or defend enforcemeneof such lien-in:
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiutre of the Property or any part thereof.
<br />5. 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", anil such other hazards. as Lendt;r.may-require -:
<br />and in such amounts and for such periods as Lender may require; provideeL that Lender shall not-require.tha[ the-amount of ~.
<br />such coverage exceed that amount of coverage requucd to pay the sums secured by this Deed of Triist. - _ ~---
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval ly Lender: pc6videil:~-
<br />that such approval shall not I;e uareasanably withheld. All premiums on insurance policies shall be paid. in the- mtinne[` -
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when-due, direrdly- to-;fhe.
<br />insurance carries -
<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 shalt have the right to hold the policies and renewals theteof-
<br />and Borrower shall promptly furnish to Lender all renewal notices anil rill receipts of paid premiums. In the~eveno-of-loss;
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of loss i[ not made promptly
<br />by Borrower. -
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall fie applied to restoration or repair-of-.
<br />the Property damaged, provided such restoration or repair is acanomically feasible and the security of this Deed of Trust. is. -.
<br />not thereby impaireD. if such restoration ar repair is not economically feasible or d the security of this Deed. of Trust-would
<br />be impaired, the insurance proceeds shall he 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, ar if Borrower fails to respond to Lander within 30 days froiq dhe
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Fcoperty
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Harrower otherwise agree in writing, any such application of proceeds to principal shall not. extend
<br />or postpone the due dale of the monthly installmems referred to in paragraphs I and 2 hereof or change the amount.of
<br />such installments. If under paragraph 1H hereof the Property is acquired fay Lender, all right, title and interest of HQrrdwer
<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 shalt 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. Prtxervation and Maintenance of Property; Leaseholds; Condominiums; Planned Unil Developments, Rorrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or 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 Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, [he 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 Dced of Trust, the covenants and agreements of such rider
<br />shalt be incorporated into and shall amend and supplement the covenants anil agreements of this Deed of Trust as if the rider'
<br />were a part hereof.
<br />7. Pttweetioo of Lender's Security. If Borrower fails to perform the covenants anil agreements contained in this
<br />Deed of Trust,. or if any action or proceeding is commenced which materially atFects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />6ankrup[ or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, induding, but no[ 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 premmms required to maintain such
<br />insurance-in effect until such time as the requirement for such insurance rermmates m accordance with Borrower's and
<br />L.ender's written agreerent or applicable law. Borrawer shall pay the amount of all mortgage insurance premiums in the
<br />manner provided under paragraph 2 hereof.
<br />Aay amouncv disbursed by Lender pursuant to this paragraph ~, with interest thereon, shall hecame additional
<br />indebtedness of Borrawer severed by this Decd of Trust. Untas Borrower and Lender agree to other terms of payment, sueh
<br />amounts shall be payable upon notice from Lender to Borrawer requesting payment thereof, and shall bear interest fram the
<br />due of disbursement at the rate payable fram time to time on outstanding principal under the Nnte unless payment of interest
<br />at such rate would be contrary to applicable law, in which event such amounts shat) lacer interest at [he highest rate
<br />permiuibk tutdcsapplicable law, Nothing contained in this paragraph 7 shall rcyuire Lender w incur any expense or take
<br />any action hereunder.
<br />g. Ittspectba. Lender may make or cause io he made reasonable mines upon and mspecuans of the Prepcrty, provided
<br />flat Lender shall give. Borrawer notice prier to any sueh inspection specifying reasonable cause: therefor rcia[eil to Lender's
<br />imtrat in rite Praaerty.
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