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<br />L'n~iroana ('ovt NnNtx. Borrower ;md Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Burrower shill promptly pay when due [hc pn ncipal of and imerest nn the
<br />indchtedncss eviJcnecd by the Note. prepayment and talc charges as provided m the Nate. ;md the princrpal of and interest
<br />nn any Futn rt• AJs anccs scavcD by [his DceJ nl l ant.
<br />2. Fonds for Taxea and Insurance. Subject to applicable law ur to a written waiver by !.ender, Borrower shall pay
<br />ro Lender on the J:ry monthly installments of prncipal and interest ore pa}•able under the Note, until the Note is paid in full.
<br />a sum {herein "Funds') equal to one-twelfth of the yearly taxes unJ assessments which may attain priority over [his
<br />Deed of Trust, and ground rents on the Property, i f any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />plus one-twelfth of yearly premwm installments for mortgage insurance, i( any, all as reasonably estimated initially and from
<br />nine to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an instilutian the Deposits or accounts of which are insured or guaranteed by a Federal or
<br />vale agency (including !.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. I ~'nder may not charge (or so holding and applying [he Funds, analyzing said account
<br />nr verifying and compiling said assessments anJ 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 oC Trust that interest nn the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to 6e paid, Lender shall not be required io 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 u'as made. The Funds are pledged as additional security for the sums secured
<br />by this DceJ of Trust.
<br />If the amount of the Funds held by Lcndcr. together with the Gtturc monthly installments of Funds payable prior to
<br />the Due Dates of taxes. aascssmentc, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and gnxmJ rents as they lull Due, such excess shall be, at Borrower's option, either
<br />promptly repaid m Dorrowcr ar credited io Borrower on monthly installments of Funds. If the amount of the Funds
<br />help by Lender shall not be sufficient in pay tuxes, assessments. insaironce premiums and ground rents as they fall due.
<br />Born+wer shall pay to Lender any ammuri necessary to make up the deficiency within 30 days from [he 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 I ender. If under paragraph 18 hereof the Property n sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply. no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by
<br />!.ender at the lime of application :u a credit against the sums secured by this Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwrse, all payments received by Lender under the
<br />Nate and paragraphs I and 2 hereof shall be 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. Charges; f.iens. Borrower shall pay all [ayes. assessments anJ other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Dced 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 shat! make payment directly, Borrower shall promptly furnish [n Lender receipts evidencing such payments.
<br />Borrower shall promptl}• discharge any lien which has pnurity Deer this Dced of -foist; provided, that Borrower shall not tin
<br />required to Discharge any such lien w IonG :x Dorrowcr shall agree in writing m the payment of the obligation secured by
<br />such lien m a manner acceptable to Lender, or shall m guoJ fanh coolest 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 imprnvemerns now existing or hereafter erected on the Property insured
<br />against loss 6y fire, hazards included within the term "extendcD coverage", anJ such other hazards as Lender may require
<br />and in such amounts and (or such periods as Lcndcr may require; pmvideD. 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 Trust.
<br />The insurance carrier providing the insurance shall be chosen b}• Dorrowcr subject to approval by Lender, provided.
<br />that such approval shall not be unreasonably withheld. All premiwns 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 />insurance carrier.
<br />All insurance policies and renewals ihercot shall ha m form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. tender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish R> Lender all renewal notices anJ all roce~pts of p:ud premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrcr cruel Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restaratiun or repair n economically feasible :md the security of this Deed of Tnise is
<br />not thereby tmpaired. t( such restoration or repair is not 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 Decd 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 />daft; notice is mailed by Lender to Borrower that the insurance .:arrier olTers to settle a claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option euher to restoration or repair of the Property
<br />or to the sums secured by this Deed of Trust,
<br />Unless Lender and Bormwer 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 Z hereof or change the amount of
<br />such installments. If under paragraph I X hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and [o 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 u, Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />6. Preservatlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in gooD repair and shall not a7mnw waste or pennn impairment or Jetcrioration of the Property
<br />and shall comply with the provisions of any (ease if this Deed of Trust is on a IeaseholD. 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 uoder the declaration
<br />or covenants creating or governing the condominium nr planned unit development, the 6y-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 Deep of Trust, the covenants and agreements of such rider
<br />shall be incorporated irtty and shall amend and supplement the covenants anJ agreements of this Decd of Trust as if the rider
<br />were a part hereof.
<br />7. PrMMtiOa of Lender's Security. If Borrower fails to perform the covenants anJ agreements contained in this
<br />Decd of Trust, ar if any action or proceeding is commenced which materially alTects L.ender's interzst in the Property,
<br />including, but not limited to, eminent domain, iruolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt 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 Leodar's interest, including, but not limited lo, disbursement of
<br />reasonable attorney's fees and entry upon the Property tv make repairs. If Lender required mortgage insurance as a
<br />condition of making the Iaan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such
<br />insurattee in effect until such time as the requirement for such insurance terminates in accordance with Dorrower's and
<br />Letadeis written agreement or applicable law. Dorrowcr shall pay the amount of all mortgage insurance premiums in the
<br />manner provided under paragraph 2 hereof.
<br />Anyy amotmts disbursed Ity Lender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />indebtedness of Borrower secured by this Dced of Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />-mounts shat! be payable upn notice from lends: to Derraw•er requesting payment thereof, a::d she!! hear interest from the
<br />data of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest
<br />at such rate would be contrary to applicable taw, in which event such amounts shall bear interest at the highest rate
<br />permitMible under applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take
<br />ally action hereunder.
<br />g. /rtlyecliop. [.ender may make or cause to be made reasonable entrees upon and mspecnons of the Property. provrDecl
<br />that [xtider shag give Dorrowcr notice prior to any such inspecuott specifying rc:tsonablc rouse thrretur related to 1 cnder's
<br />+ntorest in the Property.
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