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<br />LizatFOart L'overnrris. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Principal cord Interest. Borrower shalt promptly pay when due the principal o€ and interest nn the
<br />indebtedness cvidanced by the Note, gregayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Beed of Trust.
<br />3. iRneds far Fazes sad Ittsaraace. Subject fo applicable law or to a written waiver by Lender, Borrower shall gay
<br />to Lender on she day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a sam (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 yearly premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments Car mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis rf assessments and bills and reasonable estimates thereof.
<br />The Funds shal3 be held in an institution the deposits or accounts of which arc insured pr guaranteed by a Federal or
<br />state agency {ncluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said razes. 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 anJ bills, unless Lender pays Borrower interest on the Funds and applicable taw
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the lime of execution of this
<br />Deed of Trust that interest on the Funds shalt bts paid to Borrower, and unless such agrcemem 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 />shalt 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 the sums secured
<br />by this Deed of Trust.
<br />If [he amount of the Funds field 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 taxis.
<br />assessments, insurance premiums and ground :ens as they tall due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Hon~ower or credhed to Borrower nn monthly installments of Funds. If the amount of the Funds
<br />hell by Lender shall not he sufficient to pay taxes, assessments. insurance premiums and ground rents as they faI! due.
<br />Borrower shall pay to Lender any amount necessary to make up tha deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in fuB of all sums ,enured by this Deed of Trust L..endcr shall promptly rfund to Borrower any Fundx
<br />held by Lender If under paragraph IS hereof the Property is sold or the Property Is otherwise acquired by Leader. [_ender
<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 e€ application as a credit against the sums secured by this DceJ of Trust.
<br />~. Application of Payments. unless applicable law provides otherwise, alt payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereo€ shall be applied by Under 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. !'barges; dens. Borrower shall pay ail rases, assessments and ether charges. fines anJ impositions attributable m
<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 oq if no[ paid in such manner, by Burrower making payment, when due, directly
<br />to the payee 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 Cornish to Lender receipts evidencing such payments.
<br />$orrower shalt promptly discharge any lien which has priority over this Deed of Trust; prowdeJ. that Burrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obbgatinn secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defenJ enforcement of such lien m.
<br />legal proceedings which operate to prevent the enforcemem of the lien or forfeiture of the Property or any part thereof.
<br />5. hazard Iasurauce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extendeJ covemgi ', anJ such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shalt not require that rite amount of
<br />such coverage exceeJ 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 Burrower subject to approval by Lender: proviJeJ.
<br />tfta[ such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance u-•trrier.
<br />All insurance policies and renewals thereof shall be in Form acceptable to L_endcr and shall mcludc a standard mortgage
<br />clause tr. favor pf and is form accepiab!c to Lender. Lender shall have the ngtit to hold the policies and rerewats ;;;^,ereof.
<br />and Borrower shall promptly furnish to Lender ui renewal notices and all receipts of paid premiums. In the event of loss.
<br />Bnrrea'er shall give prompt rutice to the insurance carrier and Leader- Lender may make pract` ut loss .f not ;Wade promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repay of
<br />the Progeny damaged, provided such restoration or reparr is nconomirdly feasible :rod the security of this DeeJ of Trust o
<br />not thereby impaired If such restoration or repair is not economically feasible or .C the security of this Deed of "Trust world
<br />be impaireJ, the insurance proceeds shat( be applieJ to the sums secured by this Decd of Trust, wuh the excess, rf any, paid
<br />to Borrower. If tfle Property is abandoneJ by Borrower, or it Borrower tails ui respond to Lender within 30 days from the
<br />date notice is mailed by Lender [o Borrower that the insurance carrier olTers to settle a claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to ecstoration or repair of the Propeny
<br />nr m the sums secured 6y this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such applicaion o! procceJs to princtpal shall nut extend
<br />or postpone the due date of the monthly installmens referred to in paragraphs I anJ 2 hereof or change the amrnmt of
<br />such ins-[allmen[s. If under paragraph 18 hereo) the Property is acquired by Lender, all right title anJ interest of Borrower
<br />in and u> any insurance policies and in and to the proceeds thereof resulting from damage w the Property prior to the sale
<br />or acquisition shall pass to Lender m the extent of the sums secured by ibis Decd of Trust immediately prior to arch s:de nr
<br />acquisition.
<br />6. Preservatinn and Mniatenance of Property; Leaseholds; Condominiums; Plmmed Unit Developments. Borrower
<br />shall keep the Property m goof rop:ur :aid sh:dl not annnut waste ar preen imp:urmcnt or deterior:u inn of the Property
<br />:rod shall comply with the provisiors of any lease if this Deed of "Trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declamoun
<br />or covenants creating or governing the condominium or planneJ unit Development, the by-taws anJ regulations of the
<br />condominium or planned unit development, and constituent document. If a condominium or planned unn Develripment
<br />rider is executed by Borrower anJ recordeJ together with this DeeJ u( Trust, the covenants and agreements of such rider
<br />shall he incm~pprated into anJ shall amcnil anJ supplement the eevenants and agreements of this DeeJ of "i'nnt as d the rifer
<br />were a part ites .~;.
<br />7. Protection of Leader's Security. If Borrower lads to perform the covenants and agreement cont:unnd in this
<br />Deed of Trust, or i[ any action or proceeding is cornmem:ed which materi:dly affects Lender's interest m stir: Propeny,
<br />including, but not limited iq eminent domain, insolvency, cote enforcement. or arrmgements or proceedings imvlvmg a
<br />6anknrpt or decedent, then Lender at Lender t option, ugon notice in Burrower, may make such appca rances, dishurce such
<br />sums and take such action as is necessary R) protect Lender's interest, including, but not limited to, Jisburseniertt of
<br />reasonable attorneys fees anJ entry upon the Property tp make repairs. It Lender required mortgage insurance as a
<br />condition of making the loan secure) by this Deed of Trust, Borrower shall pay the premiums rcyuireD to manuain such
<br />insurance in eFtect until such time as the requirement For such insuranre terminates in accordance wuh Borrower's and
<br />Leader's written agreement or applicable law, Borrower shall pay the amount of all nutrtgagc insurance premiums m the
<br />manner provided under paragraph 2 hereof.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon. shall become addition;)
<br />indebtedness of Borrower secured by this Deed of Tntst. Unless Borrower unJ i_znder agree to other terms of payment, such
<br />amounts shall he payable upon notice from Lender to Borrower requesting payment thereof. and shall bear interest Irom the
<br />date of disbursement at the rate payable from time to time on outnmding principal under the Notc ^nlcss payment of interest
<br />at such rate would be contrary to applicable taw, in which event such amounts shall bear interest at the highest rate
<br />permissible under applicable law. Nothing containeJ in this paragraph 7 shall reouire Lender to incur any expense or take
<br />any action hereunder.
<br />H. Irrspection. Lender may make or cause to be made reasonable entries upon anD uispections of the Property, provided
<br />!t±at Lender shat! o ue Burrower ..^.otice prior to any such irspectiou specifying reasattabte cause therefor related tc, Lender;
<br />interest in the Proaerty.
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