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UtvtFOtttu Covetvstvrs. Borrower and 1_ender covenant and agree as follows: ~ ~- 001956
<br />.l. hytaeet d PtiaHpal awl lalerest. Borrower shall promptly pay when due the principal of and -interest nn the
<br />indebtedness evidenced by the NMe, prepayment and late charges as provided in the Note, and the principal of and- intercp
<br />on an}• Future Advances secured by this Deed of Tnrst.
<br />Z. Fels fee Taws awl Ittawraeee. Subject to applicable law or to a written waiver by Lander, Borrower dtdl ply
<br />to Lender on the day monthly installments of principal and interest arc payable under the NMe, until the Notts is paidin full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessmen[a 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 insuranca;
<br />plus one-twelhh of yearty prcmtum mstallmcnts for mortgage insurance, if any, all as reasonably estimated initially and from
<br />nine to time by Lender on the basis of assttwments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which ate inatrrcd or guaranteed by a Fatlereh-or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply rtes Funds to pa said taxes, asseSSlMents;
<br />irtaurance premiums and ground rents. Lender may not charge for so hoMing and applying the Fonds analyzinjs said-~CCotrnt
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest oq the Fonds and applicable-law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the-tithe of execution- d this
<br />Deed of Trust that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicati&~Iaw
<br />requires such interest to be paid, Lender shall not be required to pay Bortower any imerest or earoin~r omthe Fends: ~ Lender
<br />shall give to Borrower without charge, an annual accounting of the Funds showing credits and debris to tht Funds attd~ the
<br />purpose for which each debit to the Funds was made. The Funds arc pledged as additional sorority for the stints sacneed
<br />by this Decd of Trust.
<br />if the amount of the Funds held by Lender. together with the future monthly installments of Furth payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said~gxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall tx, at Bortower's option, either
<br />promptly repaid ro Borrower or credited to Burrower on 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 dtre.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dale notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Dried of Trust. [xnder shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph I8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immedately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the tithe of application as a credit against the sums secured by this Deed of Trust.
<br />3. Applkaslga d hyseets. Unless applicable law provides otherwise, all payments received by Lender uttder the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lends 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 />3 Clusges; Lktr. Borrower shall pay all taxes. assessments and other charges, fines and impositions auributabk to
<br />the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any, in the
<br />magMr provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paytnenl, when dtx, 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 lYuntsh [o Lender receipts evidencing such payrrteMS.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided, that Borrower shall not be
<br />regwred to discharge any such lien co long as Borrower .hall agree in writing to the payment of the obligation secured by
<br />such itch m a manner acceptable to Lender, ur shall m good faith contest such lien by, ur defend enforcement of such lien in.
<br />legal pprcx~eedings which operate to prevem the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Haasd hswraece. 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 m such amounts and for such periods as Lender may require; provided, that Lnnder shall not require that the amount of
<br />such coverage exceed that amount of coverage regmred w pay the sums secured by this Deed of Tntst.
<br />The insurance carrier providing the inwrance shall be chosen by Borrower subject to approval by Lender, provided.
<br />that such approval shall not rte unreasonably wuhheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, by Borrower making payment, when due, directly to the
<br />insurmce carrier.
<br />All insurance policies and renewals thereof shall he 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 thereof,
<br />and Borrower shall promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall glee prompt nonce to the insurance earner and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lnnder and Borrower otherwise agree in wrung, insurance pnxeeds shall be applied to restoration or repay of
<br />the Property damaged, provided such restorauoo ur repair ~s ecnnom+eally (easiblt and the security of this Deed of Trust is
<br />not thereby imparted. If such restoration or repair rs nut economically leasible ur d the security of this Deed of Trust would
<br />be impaired, the inwrance proceeds shall be applied to the sums secured by this Deed of Trust, with the excess, if any, paid
<br />to Borrower. (t the Property is abandoned by Borrower, or if Hornrwcr fads to respond to Lender within 30 days from the
<br />date twtim is mailed by Lender to Borrower that the insurance earner oHen to settle a claim for insurance t+enefits, Lender
<br />is authorized w collect and apply the insurance prxends at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Dend of Trust.
<br />Unless Lender and Borrower uthnrwise agree m wrung, any such application of proceeds to principal shall not extend
<br />or postpone the due dace of the nwnthly installments refereed to m paragraphs t and ?hereof or change the amount of
<br />such installments. If under paragraph lit hereof the Property a aeyuired by Lender, all right, title and incerest of Borrower
<br />in and to any insurance policies and m and w the proceeds thereof resulting Irom damage to the Property prior to the salt
<br />ur acquisition shall pass to Lender to the extent oI the sums secured t?y this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />f. hrservadon sad lNtriatenagce of Property; Leaseholds; ('ondominiums; Plashed Unit Developmettls. Borrower
<br />.hail keep the Property in gaud repair and shall nut aimnu: waste ++r ptrenn impuumcnt or deterioration u( the Property
<br />and shall wmply with the provisions of any lease if this [)eed of Trust ~s on a leasehold. If this Deed of Trust is nn a unit in a
<br />condominium or a planned unit development, Burrower shall perform all of Borrower's obligations under the declaration
<br />ur covenants creating or governing the condummium or planned unit development, the by-laws and regulations of the
<br />wndomioium oc planned amt dtcelupment, and wnuitucnt ducumems, if a condominium or planned ono des-tlopmtm
<br />rider is executed h}' Borrowtr and recorded rogether wuh this Decd of I rust, the covenants and agrcenrtnb of such rider
<br />shall tae incorporated into and shall amend and suppitment the covenants and agreements of this [(red of Trust as it the ndtr
<br />were a part hereof.
<br />7, Psotectbn of Leaders Security. I( Burnrwu fads to perform the covenants and agretmtnh a?ntamcd m this
<br />Deed of Trust, or if any action or proceeding is commenced which matennliy affects lender's interest in the Property,
<br />including, but qot limited to, eminent domain, insulventy, code tnfurcement, or arrangtmenLti or proceedings ineoivmg a
<br />Ixankrup[ or decedent, then Lender at Lender's option, upon nutlet iu Borrower, may make such appearances, vhehunt ,uch
<br />sums and take such action as is necessan to protect lender's mttrtst, minding. but not hmoed to, dishes semcnt of
<br />reasonable attorney's foes and entry upon the Property to make repairs. If Lender required mortgage hnuruice a, a
<br />cogdiuan p[ making the loan secured by' lttis [Xnd of Trust Burrow cr shall pay the premiums required to maintain .uch
<br />insurance in tHeri until such tints as the requirement for such iruuranct terminates in accordance wnh Burruwrr's anJ
<br />lender's written agreement or a tcabk law. Borrower shall pap the amount of alt mortgage buuranu~ premnmts h+ iht
<br />manner provided tender paragrapb 2 hereof.
<br />Any attwUntx disbursed by Lender pursuant w this paragraph ', wuh ~n;rrest iherton. ,hall heconre addmunei
<br />mrkbtedness of Borrowtr secured by this l)ced of Trust. 1'nless Borrower and f ender ,agree to other terms of payment, vxh
<br />arttaunts shall ffe payable upon notice from !.ender fn Borrower requesting paymem ihcrenf, and shall hear interest from the
<br />date a[ tkshuraergent al the me payable from time to Hint on outstanding principal under the Note unless payment of interest
<br />at such rate would Ire contrary to applicable law, m which even[ Such amount, ,hall hey mtertsi at the h~ghts[ raft
<br />permiasiblc under apphcshle law- Nothing cont:u ntd in thts paragraph ? shat! rcyu~re [.ender iu incur any expense r+r take
<br />any action hereunder.
<br />L lAmlet may make or .auae to hr. made reasonable entns~, u~~n .rn~• ntspectu+ns of [he Pr0(Hrt,Jr, provided
<br />that [„ender shtkp art Borrower nonce poor to any such msptctron s~c~(y;ng reas„nahte oaox the rti,v~ relaud n, 1 r+:dc.'s
<br />~ntnreat io iha Proseety.
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