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IC Borrower pays Funds to !.ender. the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply
<br />the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender
<br />pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender
<br />;~ may agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower,
<br />and unless such agreement is made or applicable Eaw requires such interest to be paid, Lender shall not be required
<br />q"+ to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrvwer, without charge, an annual
<br />u accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was
<br />C made. The Funds are pledged az additional security for the sums secured by this Deed of'frust.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />CV the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said
<br />~ taxes, assessments, insurance premiums and ground rents as they fall due, such excess shalt be. at Borrower's option,
<br />either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. IF the amount of the
<br />Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall
<br />due, Borrower shall pay to Lender any amount necessary to make up the deticiency in one or more payments as Lender
<br />may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. if under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by
<br />Lender. Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any
<br />Funds held by 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 paymtents received by Lender under
<br />the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note.
<br />4. Prior Mortgages and Detds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations
<br />under any mortgage, deed of trust or other security agreement with a lien which has priority-over this Deed of Trust,
<br />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes,
<br />assessments and other charges. fines and impositions attributable to the Property which may attain a priority over this
<br />Deed of Trust, and leazehotd pavments or ground rents, it' any.
<br />5. Hazard Insarauce. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage", and such other hazards az Lender
<br />may require and in such amounts and for such periods as Lender may require.
<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 insurance policies and renewals thereof shall be in a form
<br />acceptable to [.ender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender.
<br />Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust
<br />or other security agreement with a lien which has priority over this Deed of Trust.
<br />In the event of toss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not made promptly by Borrower.
<br />If the Property is abandoned by Borrower, or if Borrower tails to respond to Lender within 30 days from the-date
<br />iro[ice is mailed by Lender to Borrower that the insurance carrier oft'ers to settle a claim for insurance benefits, Lender is
<br />authorized to collect and apply the insurance proceeds at Lender's vption either ro restoration or repair of the
<br />Property or to the sums secured by this Deed of Trust.
<br />6• Preservation and Maim stance of Property; Leaseholds: Coodominlums; Planned Unit Developments. Bor-
<br />rower shall keep the Property in good repair and shall not commit waste yr permit impairment or deterioration of the
<br />Property and shall comply with the provisions of any lease if this Deed of'frust is on a leasehold. [f this Deed of Trust is
<br />on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under
<br />the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and
<br />regulations of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. if Borrower fails to perform the covenants and agreements contained in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including
<br />reasonable attorneys' fees, and take such action as is necessary tv protect Lender's interest. If Lender required mortgage
<br />insurance as a condition of making the loan secured by this Deed of Trust. Borrower shall pay the premiums required to
<br />maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with
<br />Borrower's and Lender's written agreement or applicable taw.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate, shall
<br />become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to
<br />other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment
<br />thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense ortake any action hereunder.
<br />8. Inepectfon. Lender may make or cause to be made reasonable entries upon and inspections of the Property,
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct oc consequential, in connection with
<br />any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are
<br />hereby assigned and shalt be paid to Lander, subject to the terms of any mortgage, deed of trust or other security agree-
<br />ment with a lien which has priority over this lleed of Trust.
<br />10. Borrower Not Released; Porbeartmce By Lender Nof a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest of
<br />Borrower shalt not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in
<br />interest. Lender shall not be required to commence proceedings against such successor or refuse to excend time for pay
<br />ment or otherwise mndiiy amortization of the sums secured by this Deed of Trust by reawn of any demand made b}' the
<br />original Borrower and Borrower's successors in interest. Aoy tbrbearance by Lender in exercisin* a rghr or remedy
<br />.hereunder, or vtherwise afforded by applicable law, shall not be a waiver of or preclude the exercisc.~, ~,>-such right or
<br />remedy.
<br />11. Succewon and Atwi~te Bommd; 3oint and Several Lisbillty; Co-signers. `the cvvenants and agreements
<br />herein cuntaitted shalt bind, and the rights hereunder shall inure to, the respective sucrossvrs and assigns of Lender and
<br />Bvt•rewat. subJeet to th • prvvisions of paragraph 16 herevl'. All cvvenants and agrerntents o(Bvrrouer shall br joint and
<br />several. Apy $orrvwet why ca-signs this Decd vl'"trust. but does not execu'^-the Note, ts) is cv-aigning this Decd vf'I'rusl
<br />Holy to grant and ccmvcy that Borrvwcr's imerest in the Prupcrty to Trustee under the u:nns nC this Dced o'"'t`rust, ibi is
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