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<br />U~aFOaar CovsxnNTS. Borrower and Lender covenant and agree as~foiiows: ~ ~~
<br />1. PaymP a of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness e~. idenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on anv Future Advances secured 6y this Deed of Trust.
<br />2. &uads for Taxes and Insurance. Subject to applicable law or to a written waiver 6y Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, unlit the Note is paid in full,
<br />a sum therein "Funds") equal to one-twetfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trust, anal eroupd rents en the Property, if any, plus arm-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 shall be held in an institutior. the deposits or accoun*s of which are insured or guaranteed by a Federal or
<br />slate agency (including Lender iF Lender is such an institution). Lender shalt 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 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 such agreement is made or applicable law
<br />requires such interest to he 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 wrs made. The Funds are pledged as additional security for the sums secured
<br />by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds pa}'able prior [o
<br />the due dates of rases, assessments, insurance premiums and ground rents, shall exceed the amount required to pay sold 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 W Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shalt not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall 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 thereof.
<br />Upon payment in foil of all sums secured by this Deed of Trust, Lender shall promptly refund to Bornwer any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold m- the Property is otlherwise acquired by Lender, I,-ender
<br />shalt apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fiords 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 appiirib[e law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied 6y Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, than to the principal of the Note, and then to interest and
<br />princtpal on any Future Advances.
<br />4. Charges; Liens, Borrower shall pay all tales, assessments and other charges, fines and impositions auributable [n
<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 h_reof or, if not paid in such manner, byr Borrower making payment. when due, directly
<br />to the payee thereof. Borrower shall promptly furnish to Lender alt 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 rn~er this Deed oC l'nisL presided. that Borrower shall not be
<br />required to discharge ary such lien so long as Borrower shall agree in writing u, the payment of the obiigauan secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith comcst such lien hy. or defettd enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insuraace. Borrower shall keep the improvements now etisting ar hereafter erected on the Property insured
<br />against loss by fire. hazards included within the term "extended covcr.+ge", and such other hazards as Lender may require
<br />and in such amounts and for such penods as Lender oral' require: provided, that Lender shall not regwre !hat [he amount pf
<br />such coverage exceed that amount of coverage reymred m pay the sums secured by this Deed pf Tn~st.
<br />The insurance carrier providing the innuancc chat! 6e chosen by Borrower sr6lect to apprne al by d_cndcr; prtv~ded.
<br />tha, such approval shall not he unreasonably withheld. All premiums op insuruncc policies ::halt he paid in the manner
<br />provided under paragraph 2 herco[ or. if not paid in such manner, 6y Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />.411 insurance policies and renewals €hereol shall be m form acceputbie to [.ender and shall include a standard mortgage
<br />clause in favor e'; and in form ac:;epiabie l0 ].coder. Lender shalE have [hc righF to held the nolictcs and rcne_wa1-. thereof.
<br />and Borrower shall promptly furnish to Lender td! renewal noGCCS and :dl receipts uC pall premiums. h. the cv.'nt of less.
<br />Borrower shall Rive promo[ notice to the insurance carrier and Lender. L,atdei~ =.nay stake. proof of less .C rnl. n:ad^ ^:ampflc
<br />6v Harrower. -
<br />Un!?=s Lender a::d Bur..*owe° nt."._rw:st; a2rtz in wnt~ng, solos ante prn~eeds shah be applied tr+ rsieration cr rep:ur ,xt
<br />the Property damaged. provtded such restoration or repair a economically feasible and the secunn of thi< Deco .+f Trust n
<br />not thereby impaired. If such restnratwn or repair is not economically feasible or it the senuity of ihi. Deed of Tnist svouid
<br />he impaired, the insurance proceeds shall be applied to the sums secured by this Dced of 'Frost. wnh the excess, iC an} paid
<br />to Borrower. tt the Property is abandoned by Borrower, or i( Borrower Calk to respond in Lender witbm 30 dace (rem thr
<br />date nonce is mailed by Lender to Borrower that the mairance carrier olTers in settle a clmm for ~murance henefth. Lender
<br />is authorized to m(lect and apply the insurance proceed, at Londe. is option either to restoration nr repair of the Prnpcm
<br />or to the sums secured by this Dced of Tntst.
<br />Unless Lender and Borrower otherwise ague in writing, am' stsh apphcauon o[ proceeds to pnncipal s~._II not extend
<br />or postpone the due date of the monthly insrliments referred m in paragraphs 1 and 3 herco( or change the amoum of
<br />such installmems. If under paragraph Iii hereol the Property s acquired h} Lender, of right, title and interest of Hnrmwer
<br />in and to any insurance policies and in and to the proceeds thereof resulting L•om damage to the Propcrtc prior to the laic
<br />or acquisition shall pass to Lender to the extent ut the sums secured by ihu Dced o[ 1-rust immediately poor to such Bale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property: Leasrhalds; Condominiums; Planned knit Developments. Borrower
<br />shall keep the Property In good repair .md shall no! .ammo ww2• ur permit ingrau~mcnt or Jetennrvinn ,+t the Property
<br />and shall comply with the pmvismns of an}• lease if this Dced of Trust is on a Icuschold. If this Deed of "Trust is at a amt in a
<br />condominium or a planned wail development, Harrower shall perSonn a(I of Borrower's ohiigatinns under the dedarauon
<br />or covenants creating or governing the condominium ur planned unn decclopmenL the h}-law-s and regulations of the
<br />condominium or planned unu development, and consnntem documents. ii a -mdnminium or planned unit development
<br />rider is executed by Borrower and recorded together with this Deed oC -f ntst, the covenants and agreements nt such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Deed of Trust s if the rider
<br />were a port hereof.
<br />9. Protection of bender's 5ecuttity. if Borrrnvcr C:uls !o perform !hc• covenants and agreements cnntamed in this
<br />Geed of Trust, ar if any action ur proeeedine is amuuenced which nupen:dlp a!leas I ~ndcr's ~mcnat in the Property.
<br />including, but not limited to, eminent domain, msoh•ency. code entorcentent, ur arrangements nr proceedings uts oivmg u
<br />bankrupt or decedent, then Lender at Lender's option, upon native to Borrower, may make such aplxar;uucs. disburse wch
<br />sums and take such action as is necessary to protect Lender's interest, including, Pmt not limimd to, disburscnient of
<br />reasonable attorney's fees and entry upon the Property to make repairs'. If Lender reyuired mortgage insurance as
<br />condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums reyuired m mainCiin such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's ;uul
<br />Lender's written agreement or applicable law. Borrower sh:dl pap the amount of all mortgage :nsurancc prcnnums 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 additional
<br />indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of paymem, such
<br />amounts shall he payable upon notice from Lender to Borrower rcyuc~sting payment thereof, and shall hear mterest from the
<br />date of disbursement ai the rate payable from time to time on outstanding principal under the Note unless payment of interest
<br />at such rate would be contrary• to applicable law, in which event -wch amounts shall bear uneresl at the highest rate
<br />permissible under applicable law. Nothing contaiped in this paragraph 7 shall require i_ender to incur an}• expense or take
<br />any action hereundt::.
<br />8. Insgectlan. Lender may make or cause to be made reasonable entries upon and inspections of the Property, prorid%d
<br />that Lender shall give Borrower notice prior to any such inspection specif}•ing reasonable cause therefor related io 1_ender\
<br />mterest to the Prccerty.
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