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<br />If Borrower pays Funds to Lender, 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 [axes, 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 />r may agree in writing at the time of execution of this 1)erd of Trust that interest on the Funds shall be paid to Borrower,
<br />~~ and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required
<br />,~~ to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual
<br />~ accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was
<br />~ made. The Funds are pledged as additional security for the sums secured by this Deed of Trust.
<br />v 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
<br />taxes, assessments, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option,
<br />N either promptly repaid to Bottower 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 deficiency 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 I7 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 payments received by Lender under
<br />the Note and paragraphs 1 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 Deeds of Teast; 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 leasehold payments or ground rents. if any.
<br />5. Hazard Insorsnce. Borrower shall keep the improvements now existing or hereafrer erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as 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 choler, by Borrower subject ro approval by Lender; provided.
<br />that such approval shall not be unreasonably withheld. Atl 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 io 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 loss. 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 fails to respond to Lender within 30 days from the date
<br />notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender is
<br />authorized to collect and apply the insurance proceeds at Lender's option either ro restoration or repair of the
<br />Property or to the sums secured by this Deed of'I'rust.
<br />6. Preservation and Maintenance of Propeety; Leaseholds; Condominiums; Planned Unit Developments. Bor-
<br />rower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the
<br />Property and shall comply with the provisions of any tease if this Deed of Trust is on a leasehold. if this Deed of Trust is
<br />on a unit in a condominium or a planned unit development, Borrower shat) 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 />[hen 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 to 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 law.
<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 or take any action hereunder.
<br />8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property,
<br />provided that Lender shaft give Boerower notice prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />4. Condemnation. The proceeds of any award or claim for damages, direct or 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 Lender, subject to the terms of any mortgage, deed of trust or other security agree-
<br />ment with a lien which has priority over this Deed of Trust.
<br />14. Borrower Not Bekased; Forbearance By Lender Not a Waiver. Fattension of the time for payment nr
<br />modification of amortization of the sums secured by this Ih~ed of Ttust granted by Lender to any successor in interest o1'
<br />Borrower sha21 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 extend time for pay-
<br />ment or otherwise modify amortization of the sums secured by this Dced o1' Ttust by reason of any drmand made by the
<br />original Borrower and $orrower's successors in interest. Any Sorbearance by Lender in exercising u ght or remedy
<br />hereunder, or otherwise afforded by applicable law, shall nut be a waiver of or preclude the exercise of .eny such right or
<br />remedy.
<br />I1. Succeaiora and Asa[yu Bound; Joint sad Several Llabillty; Co-signers. The covenants and agreemeris
<br />herein faatained shall hind, and the rights hereunder shalt inure. to, the respective sutt~tssoa and assigns of Lender and
<br />_ Bottower,subjeef to the provisiatts of paragraph 16 hereof. Alf irovenants and agrrements of Borrower shalt tk=joint and
<br />sev6tal. hny Borrower who co-signs this Decd of'i runt, but does not execute the Note./a) is ca-signing this [)eed of Trust
<br /><mly to grant and convey that Borrower's interest in fhc I'roper[y to Trustty. under thr terms a(this Deed of Tntst.Ib) is
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