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<br />83- 005272
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
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<br />.1. Payment of Principal and Interest. Borrower shall promptly pay when due Ihe principal of and interesl 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 any Future Advances secured by this Deed of Trust.
<br />2. Funds for TU08 and Insurance. 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 fuJI,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and asses.sments 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 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 shaH 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 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 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 stlch agreement is made or applicable law
<br />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 tbe 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, shaH exceed the amount required to pay sa'id taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or -credited to Borrower 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 due.
<br />Borrower shaH 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 requesting payment thereoL
<br />Upon payment in fun of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 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 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 1 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; 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, 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 shaH 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 shalJ not be
<br />required to discharge any such Hen 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 conlest slIch lien by, or defend enforcement of stich lien in.
<br />legal proceedings which operate to prevent the enforcement of 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 Joss 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 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 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 manner
<br />pl'ovided 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 thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceprable 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 Joss,
<br />Borrower shall give prompt notice 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 Property damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would
<br />be impaired, the insurance proceeds shall be applied to [he 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 to 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 benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at l.ender'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 proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I 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. Presenation aud Maiotenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep lhe Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shan 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 />condomlnium or a planned unit development, Borrower shall pedorm 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 [he
<br />condominium or planned unit development, and constituent documents.. rf a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Deed of Trust, 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 Tru5tt as if [he rider
<br />were a part bereof.
<br />7. Protection of UDder's Security. If Borrower fails to perform the covenants and agreements con~ained in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Propeny.
<br />including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt.or decedent, then Lender at Lender's option, upon notice [Q Borrower, may make such appearances. dishurse such
<br />sums and take such action as is necessary to protect Lender's interest, including, hut not limited to, disbursement of
<br />reasonable attorney's fees and entI)' upon tbe Property to make repairs. If Lender required mortgage insurance as. ..I
<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 such time as the requirement for such insurance terminates in accordance with Borrower's and
<br />Lender's writt.co agreement or applicable law. Borrower shall pay the amount of all rnortgage insurance premiums in the
<br />manner provided under paragraph 2 hereof.
<br />Any amounts di!.bursed_ by Lender pUf5uant to this paragraph 7. with interest thereon, shall be~on)c additionill
<br />indcbtc::d_llcu of -Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts s;ha~l-be paya\:de upon notice from Lender to Borrower requesting payment thereof, ;md shall bear interesl from the
<br />. d.ate of disbu:rse:Jpent at the rate-payable from time to time on outstanding principal under the No~e unless payment of interest
<br />at suc.h.. rate wOUld be contrary to applicable taw, in which event ~uch amounts shall bear Interest at the highest rale
<br />pc-rmiaib1c und-er applicable law. NoLbing contained in this paragraph 7 shall require Lender to incur ~ny expense Of take
<br />any action hereunder.
<br />8. ~!"_l.ender may make or cause hJ be made reawnable entries upon ano inspeclions of ihe Pr(lpcrty. provided
<br />~hat l..e:ndef.lhaU Jive Borrower not-ice priQr tQ nny 5-ucn .in.spe~tion specifying rea~onabk cause therefor re1arcd fl' L('oder\-
<br />>Dlum ill tbeProllertv.
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