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<br />UxiFOer.,t. Covanzetvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the urincipal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nate,. and the principal of and interact
<br />on any Future Advances secured 6ythis Deedof Trust
<br />2. Foods for Taxes and.Insunace. Subject [o applicable law or to a written waiver by Lender, Borzower shall pay,
<br />[a Lender on the day monthly installments of principal anei interest ate payable under the Notc, until the Note is paidin full,'
<br />a sum (herein "`Funds") eGuai [o one-twelfth of the yearly takes .and assessments which may attain priority avct this'.
<br />Deed of Trust, and ground rents on the Properly, if any, plus one-twelfth of yearly premium installmentsfor hazard insurance.'
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estirnateG initially and from
<br />time to timebyLender on the basis of assessments and hills and reasonable estimates thereof:
<br />T7ie Fundsshatl! be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution!. Lender shall apply the Funds [o pay said taxes, assessments.
<br />insurance premiums and ground tents. Lender may no[ charge for so Folding and applying the Funds, analyzing said account
<br />or verifying and. compiling said assessments and bills, unless. Lender pays Borrower interest anthe Funds and applicalilclaw
<br />permits Fender to make such a charge. Borrower and Lender may agree in writing at :he time of execmionbf this
<br />Deed of Trust that interest an the Fundsshall be pai3 to Borrower, and unless Bitch agreement is made or applicable law
<br />requires such interest to Fx paid, Lendershall not be required to pay Borrower any interest or earnings on ihcFtinds. 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 arc pledged as additional security for thesums secured.
<br />by this Deed of 't'rust.
<br />If theamounLOf the Funds held by Lender, together with the future monihiyinstallmenisaf Fundspayable prior io.
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall escccd theamount required to paysaad taxes:
<br />assessments, insurance premiums a+vl ground rents as they Call due, such excess shall he, at Borrower's ciption; either
<br />promptly. repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
<br />held by tender shall not be sufficient ro pay taxes. assessments. insurance premiums and ground refits as they fall due:
<br />Borrower shall pay to Lender anyamount necessary =.a make up thedcficiency within 30 days from thedatc notice is mailed.
<br />by Lender to Borrower requesting payment thereof-
<br />Upon payment in full of all sums secured by this Decd of Trust, Lender shall proinotly re[u,~dto Borrower any Funds'.
<br />held by Lender. If under paragraph F 3 hereof the Properly is sold i7r the Prpperty is otherwise acquired. by 1.ender, i_endcr
<br />shall apply, no later than immediately prior in the sale of the Property or its acquisition by Lender;. any Funds befit ¢y
<br />Lender at the time of application as a credit against the sums secured by this Deed of Trust..
<br />3. Ap~icalion of Payments. Unless applicable law provides otherwise, all payments received by Lender under tbe.
<br />Note and paragraphs i. and 2 hereof sha{I he appfied by }..coder first in payment of amounts payable tol.cnder t+y Borrower
<br />under paragraph 2 hereof, then io interest payable an [fie Note.. then tothe principaCof the Nate. and then tointerest and'
<br />principal on any FuturcAdvanccs.
<br />4. Charxaes; Lies. Borrower shall pay. all [ayes, assessments and rnhcr charges. fines and impositions-attributable to
<br />the Property whichmay`attain a prioritynvcr this Decd of Trust, and leasehold payments orground rents..if any, irt. [he.
<br />matuxr provided under. paragraph 2 hereof or, if nor paid in such manner, by Borrower making payment; when due, ilirectty'
<br />to the payee thereof. Borrower shall promptly#urnish to Lcnderall notices bEamounts due under this paragraph, andiirthe
<br />event Borrower shall makepayment directly, Borrower shall promptly (urnish to Lender receipts evidencingsuch,payments'.
<br />Borrower shall promptly: dischargeanylien whichhas priority aver this Deed of Trust; provided, that Bi:rrower'shall not he
<br />required [o discharge any such lien so long as $orrawer shalla¢ree. in wriling ici the paymentof the obligation secured by
<br />suchlienin amanneracceptable to Lender,or shall in good faithcontest such lieayhy; ar defend enforcement of Stich Ficnin.
<br />Icgal proceedings which operate !o prevent the enforcement. of the lien or forfeiture of the Propi:r[y or any parb thereof:
<br />S. Harard lrtsura~ce. Borrower shalt keep the iruprovemenis now existing,or hereafter crectedon the Property insumd
<br />against lossby fire, hazardsinduded within the z::rm "extended coverage", and such-.ether hazards as 7..endcr may require.
<br />and in such amounts and for such periods as Ixnder may require: provided, that Lender shall not require [Fiat the amount i+f.
<br />such coverage exceed that amount of coverage. required to pay the sumssecured t+y t}Cis Decd of Tntst.
<br />The insurance carrieYproviding the insurance shall be chosen by.Borrower subtcct ioappnrv;alhy 1 ender. provided.
<br />[hat such approval shall not be unreasonably withheld. AtI premiumson insurance policies shall bepaid inthe manner
<br />providai under paragraph 2 hereof or, ii not paid in such manner; by Borrower making payment; when due, directly to the
<br />iostriaoce aarriu;
<br />All insurance policies and renewals thereof shalt be io-form a~•ceptabic to (.:ender and shalLmcludc astandard mortgage'
<br />clause in favorof and. in form acceptable [a Lender. Lender shaii have the right to hold [Fie policies :and. renewals: thereof,'
<br />and Borrower shat} promptly furnish to Lender all renewal onuses and all receipts <if paid premiums:. Tn the event-of loss...
<br />Borrower shall give prompt notice to the insurance carrier :tad }:ender. Lander may' make proof of loss i foot made promptly'
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agreeinwnting, insurance proceeds shall be applied to restorationor. repair. of
<br />the Pro~rty damaged, provided such restorauon or repair is economically ieasihle :rod :he securityof this Deed af. Trust is
<br />not thereby impaired. If such restorauon or7epair is not. economically feasible or if the scctirity of this Deed nt `fnisr would
<br />be impaired, theinsurancepraceeds shall be applied to the sums secured bylhis Dcedtif Trust: withthe :excess.. if any, paid'
<br />toBorrower. if the Property is abandoned by Harrower, or if Borrower faits tt7 respond to i_ender within 30 days from the'
<br />date notice is mailedbyLender to Borrower .that the insurance carrier offers tose$Ie:a Claim for insitrancc benefits. I:ender
<br />is authorized'tocollect andappiy the insurance proceeds at Lenders option either to restoration or repair of the Property
<br />or to the sums secured bylhis Deedbf Trust:
<br />Unless Lender andBorrowerotherwise agree in wriiing,.any suchapplication of proccedsto principal shall nocextend
<br />or post{wne [he due date oP the monthly installments referred to in paragraphs- ]and 2 ltereaY or change the .amount of
<br />such installments. If underparag['aph FS hereof the Property isacquiredby Lender: all right, title and interest ofBormwer
<br />n and. [oany insurance policiesand io and to the proceeds thereof resulting from damage ra the.Yropcrty prior to the sale
<br />at acquisition shall pass to'L,ender to the extent of the sums xcured by this Deed of "trust tmmediatcly priorty such sale or
<br />acquisition:
<br />d. Preservation and. Miristenance of Property: Leaseholds; Condominiums; Planned Umt Developments:. $orrower
<br />shalt keep the Property in good repair andshalinot commit w-acre or. perms impairment .yr deterioration of the Pri+perty,
<br />and shall comply with [he provisions of any tease if this Deed of Trust iSon ale;uchold. If this Deed of Trust is on a unit in a-
<br />condominiumor a plannedunirdevelopmenL Borrower shall. perlormail bfBorrower's ohligatians underthe decluratian
<br />orcovenan[s creating or governing the condominium. or planned unit development: the by-laws and regiilituons: o{ the
<br />condominium or planrtedunit development. and consiiiuem documents: 1f a condominium or planned unit development
<br />rider is executed by.Borrowerand recorded together with ihisDeed of Trust, the covenants and agreements oF.such rider
<br />shalfbe incorporated into and shall amend and supplement. the covenants and xgreerncnts of this Decd of 'T'rust as if the rider
<br />were a part hereof.
<br />Z. RoteMion of Leader's Security.. If Borrower fails to. perform the covenants and agreements contained in,this
<br />Deedaf Trust, or ifaoy action or proceeding is commenced which materially attests }.-seder's interest in. the Prnperi}'.
<br />including, but no[ limited to, eminent domain; insolvency, code enforcement, or arrangements or proceedings inyoiving 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 Lender's 3nteresf, including, but azot limited to, diebursemcm 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' ibis Deed of Trust, Sorrewer shat! pay the premiums required to tnninlain Stich
<br />insurance ineifec[ un•il such time as the requirement for such. insurance terminates in accordance with Borrower's and
<br />Lender's written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance prcrniurns in the
<br />manner provided under paragraph 2 hereof.
<br />Any amounts disbursedby Lender pursuant to this paragraph ~, with interest thereon, shalt become. additional
<br />indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and t_cnder agree to other [ernes of payment. such
<br />amounts shall be payable upon nonce from Lender to Berrower requesting payment thereof, and shall bear interest from the
<br />date ofdisbursement a[ the tatepayable from time to time on outstanding principal under the Note uraess payment of interest
<br />at such rate would be contrary to applicable law, in v,~hich event such amounts shall bear interest at the highest rate
<br />permissible under applicable law. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take
<br />any. action hereunder.
<br />8. lospection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, pr<rv idea
<br />that Lender shag give Borrower notice prior eo any such inspection specifying reasonable cause therefor related w L.rndcr'e
<br />interest m the Procertv.
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