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.~ 001989
<br />Utstroast CoveNxtvrs. Borrower and Lender covenant and agree as follows: $4
<br />_ J. hyereet d Mneipstl and laterest. Borrower shall promptly pay when dtre the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on an Future Advances secured by this Deed of Tn!sf.
<br />[mode for Tuea atsi Irrorance. Subject to 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 ground rents on the Property, if any, plus one-twelfth of ywrly premium installments for hazard insurance,
<br />plus orre-twelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />urrre to time by Lender on the basis of ttssessmrnts and bills and reasonabk estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guarantad 6y a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to Wy said taxes, asse~ments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said arxbtrnt
<br />or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender 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 appligbk law
<br />requires such interest to be paid, Lender shalt not be inquired 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 Furiris and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional eecutity for the arurtsttteeoted
<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 to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's optttm, eiHtar
<br />promptly repaid to Borrower or credited to Borrower nn monthly installmrnts of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rrnts as they fall due.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dale notice n 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 Hinds
<br />held by Lender. It under paragraph I S hereof the Property is sold nr 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 at the hme of application as a credit against the sums secured by this Deed of Trust.
<br />3. AppBcmton d Payrnenls. Unless applicable law provides otherwise, all payments received by Lender utrder the
<br />Note and paragraphs 1 and 2 hereof shat) be applied by Lender first in payment of amounts payable to Lender 6y Borrower
<br />under paragraph 2 hermf, 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; Lkm. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a priority over this Decd of Trust, and leasehold p:yments or ground rents, if any, in the
<br />mariner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dtx, direMly
<br />to the payce 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 tarnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over thts Deed of Trust; provided, that Borrower shall not be
<br />required to discharge any such ben so Tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such Tien m a manrrer acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
<br />legal pproceedings which operate to prevent the enforcement ul the lien or forfeiture of the Property or any part thereof.
<br />5. Hasard la rrraace. Borrower shall keep the improvemems 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 in such amounts and for such penuds 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 Trust.
<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 mtrrrtter
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iosurattce cartier.
<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 shall have the right to holJ the policies and renewals thereof.
<br />acrd Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt mice to the insurance carrier and Lender 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 Properly damaged, provided such restoration or repau +s rcnnumtrally feasible and the security u( this Deed of Trust is
<br />not thereby impaired. If such restoration nr repair +s not economically feasible or !f the security of this Deed of Trust would
<br />be 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 it Borrower fails ro respond to Lender within 30 days from the
<br />date notrce is mailed by Lender to Borrower that the insurance earner offers to settle a claim for insurance benefits. Lender
<br />is authorized m colleaa and apply the insurance pro<eeds at Lender's option either to restoration or repair o[ [he Property
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in wrung, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred ro in paragraphs I and Z hereof or change the arrtoum of
<br />such installments. If under paragraph I ti bereot the Property a acyuired by Lender, all right, title and interest o[ Borrower
<br />in and to any insurance policies and m and to the pnxecds thereof resulting from damage to the Property prior Io the sale
<br />or acyuisition shall pass ro Lauder w the extent of the sums secured by this Deed of "Trust immediately prior to such sale or
<br />acyuisition.
<br />/i. Preservalioa and Mttbleoawce of Property; Lessefrolds; Condominiums; Planned Unit Developweols. Borrower
<br />skill keep the Properly m gaud repau and shall not rnmmit waste or pcrmu impairment >r dclerioration of the Property
<br />and shall comply with the provisions of any lease if this Decd of Trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condominium nr a planned unit development. Borrower shall perform all of Borrower ~ obligations under the declaration
<br />or covenants creating nr governing the condommiwn or planned unu development, the by-laws and regulations of the
<br />condominium or planned unit development, and constnucm documenft. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Deed of bust, the cnvenanu and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the awenants and agreements of this Decd of Trust as rf the rider
<br />were a part hereof.
<br />7, holecfion of Lender's Security. If Borrower fads w perform the cm.rnunts and agreements amtmnrd in this
<br />Deed of Trust, or if any action or proceed ntg is commenced which matrnally affects I.enderl interest m the Property.
<br />including, but not limited to, eminent domain, insnlvenc}, code entorcomcnt, or arrangements yr pn>ceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice !o Borrower, may make such appearances, dishurse Sufi
<br />sums and take such action as is necessary to protect Lender's interest, including, hu[ not Iimrted n,, dishuracmrnt nl
<br />reasonable attorney's tees and emry upon the Property u; make repairs If Lender required mortgagt nrsutancc as a
<br />condition of making the loan soured by this Deed of Trust. Burrower o-hatl pa} the premiums reyuired to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accnrdmrce with Borrower's and
<br />t.ertdor's written agreement or applicable law Borrower shall pa} the amount of all mortgage insurance premiums in the
<br />mantter provided under paragraph 2 hereof.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, wuh interest thereon. shall hcannc additional
<br />indebtedness of Borrower secured h}' this (wed of Trust ltnlrss Borrower and Lender agree n, other terms of payment. wch
<br />amounts shall be payable upon notice fmm fender to &urowrr rcyuesong payment [hereof, and sha!I hr.rr intcres! from Q+r
<br />date of disbursement at the rate payable from time to umr on outstanding principal under the tiotr unless payment of interst
<br />at such rate would be contrary to apptie'ahlr law, m wh+ch event such amounts sh ll hear nrterrct at the h~ghesl rate
<br />permissible under applicable law Nothing umtmneil m the paragraph ~ shall reymre t.cnder !,• incur any ex{rose ctt take
<br />any action 4ereunder.
<br />g. IMpttYbR Lender map male tit ..soar ro he rnadc rea+imab{r entnc. ufx,n :unl ur.;x°.-osv+s rl the Prope{r}, provded
<br />that [.ender slsAll give Borrower notice privy u7 any such mslxct,nu ,;x;,,~~fy+ng rra.onabie .++uc therefor rdstai, tv l,trafer'=
<br />~nterpt in the Protxrtv
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