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<br />t1:.;FOar,t CovenxrsTS. Borrower and t..ender covenant arrd ugn°e as tultows: ~~~ 1 i ~e ~1 v 1 .3
<br />1. Payratnt of Yriacipal anti Iattrc+t. Borrower shat! promptly pay hen duo the pnrrcfpal of a^.d interest on ttx
<br />indebtedness evrdtnced by the Note, prepayment and late charges as pravetla3 m the Nwe, and the principal of and inteztst
<br />on anu Future Advances sen+red by thrs Dted o(TnrN.
<br />2. Faada fw Tura and Iestaraace.. Subject to applicable law or to a written waiver by t e.r, Borrmver Bleat! pay
<br />to Lender en the day monthly installments oC principal and interest arc payable under rice Nolc, until [fie Nate is paid in full,
<br />a sum (herein "Funds"} equal to Otte-twelfth of the yearly taxes and assessments whtnh may attain priority over this
<br />Dezd of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premum installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insuran:e, if any. all as reasonably estimated ininally and from
<br />wine to time by Lender on the basis of assessments and bills rind reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or aceounts of which art insured or guaranteed by a Federal or
<br />state agency tinuluding tinder if Lender is such an institution). I_endtr shall apply the Funds to pay said taxes, assessments,
<br />insurance premium.: and ground rents. Lender may not charge torso 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 tender to make such ~ charge. Borrower and Lender may agree in wniting a[ the time of execution of this
<br />Deed of Truitt that interest on the Funds shall be paid m Borrower, and unless such agreemen: is made ur applicable law
<br />requires such interest to he paid. Lender shat! not be required to pay Nurruwer :my mterrs[ ur earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and dehiu to the Funds and the
<br />gurpnst for which each debit to the Funds was made. Toe Fmtds are pledged as additional securfry for the Burns secured
<br />by this Decd of Trust.
<br />If the amount of the Funds held by Lender, together with the fuurre 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 Bard taxes.
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall tx. at Borrower's option, ehhtr
<br />promptly repaid to Borrower ur credited to Burrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leniler shall not be sufficient to pay taxes, assessmem<_. insurance premiums and ground rents as [hey fall due.
<br />Borrower shall pay to Lender any amount necessary to make up the defidency wihin 30 days Erom the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured bg this Decd of Trust, Lender shall pruneptly refund w Borrower any For.Js
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acyuired by Lender, Lender
<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 of application as a credit against the sums secured by this Deed of Trust.
<br />3. Appticatfoa of Payments. Unless applicable law provides utheru•tse, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable tin the Nae, rhea to the principal of the No[e, and [hen to ineerest and
<br />principal nn any Future Advances.
<br />4. 4Jharges; Liens. Borrower shall pay ail taxes. usessmenu and other charges. fines rind impositions attribu[able to
<br />the Property which may attain a priority over this Decd u( Trust, and leasehold payments or ground rents, if any, in the
<br />manner provided under paragraph 2 hereof m, if not paid in such manner, by Burrower making payment, when due, directly
<br />to the payee thereof. Burrower shall promptly furnish to Lender :dl notices of amounts due under this paragraph, and in the
<br />event Borrowu shall make paymem Directly, Borrower shalt promptly lurmsh to 1_endcr receipts evidenetng such payments.
<br />Borrower shall promptly discharge any lien which has priority over [hu lhed r>f Trust; provided, that Burrower shall not be
<br />reyuired to discharge any such lien so long as Borrower shall agree in writing to the paymtm of the obiigauon secured by
<br />such hen +n :t manner acceptable to Lender, or shall iu good [arth contest such lien hy, ur defend enfurecment of such hen in.
<br />hgal pproceedings which operate to prevem the enlorcement of the lien or forfciutre of the Property or any part thereof.
<br />5. hazard Insurance. Borrower shall keep the improvements ;ww existing or hereafter erected on the Property insured
<br />against Foss by fire, hazards included within the teme "extended coverage", anJ ouch other hazards as Lender may require
<br />and m wch am~unt_ and for such periods as Lender may reyuire; provided, that Lender shall not reymre that the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the aunrs secured by thu Decd of Trust.
<br />"the insurance carrier providing the insurance shall be chosen 6y borrower subject to approval by Lender, pmv.ded.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall he paid in [he manner
<br />provided wader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />assurance carrier.
<br />Alf insurance policies and renewals thereo! shall be to form ucceptabie to Lender and shah' include a standard mongage
<br />clause ir. favor of and in form acceptable to Lender. Lender shelf have the right to hold the policies and renewals [hereof,
<br />and Borrower shaft promptly furnish to Lender all renewal nmices and ail receipts of peed premiums. In feet event of loss.
<br />Borrower shaft give prompt notice to [he insurance carrier and Lender. Lender may make proof of loss d nut made promptly
<br />4y Borrower.
<br />Unless Lender and Borrower utherwrse agree in writing, irtsuran.:t proceeds sha71 4e applied w restoration or repair of
<br />the Yropeny damaged, provided such restoration ur rcp;ur is ecumm~ically feasible and the security of thu DeeJ of 'trust is
<br />not thereby impaired. If such restoration or repair is not economically feasible ur d the security of this Deed of Taut would
<br />be impaired, the insurance proceeds shall be applied to the Bunts secured by this Deed irF T'rus4 with the excess, it any, pail
<br />to Borrower. if the Property is abandoned by Burrower, or it Borrower f:uls to respond to Lender within 30 days from [he
<br />date notice is mailed 4y Lender to Borrower that the insurance carrier often to settle a claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repxa tit the Propeny
<br />or to she sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such apphcaoon of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments roitrred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. If under paragraph I8 hereof the Property a acyuired 4y t_ender, a!I right, title and interest of Borrower
<br />in and to grey insurance policies and in and to the proceeds thcreut resulting Irum damage to the Property prior to the sale
<br />or acquisition shalt pass to Lender to the extent ul the sums secured by this Deed of Trust uumediately prior to such sale or
<br />acquisition.
<br />6. Prestrvaiion and &9alattnaace of Property; Leaseholds; Condominiums; Planue6 Unit Developments. Borrower
<br />shall keep the Property in good repxtr and shall not eonunu waste .~r pennn impuirntrnt ur deterioration of the Property
<br />and shall comply with the provisions of any lease if this lleed of Trust rs tin-a leasehold. I[ this Deed of Trust is on a unit in :r
<br />condominium or a planned unit development, Borrower shall periotm aN of Borrower's obligations under the declaration
<br />tit covenants creating or governing the condominium or plmmed unit develupneent, the by-laws and regulations of the
<br />condominium or pfanred unit dtvebpmen6 and constituem ducunrents. 1(a condominium ur planned unit development
<br />rider is estculed by Borrower and recorded together with this DeeJ of "1 rust, the covenants and agreements of such rider
<br />shall be incorporated lino and shall amend and supplenrcm the covenants and agretmtms of this Decd of 'Trust as if the ride:
<br />wart a part hereof.
<br />?- ~`eetlan of f.tadtr's Security. ff Borrower fails to perform rfrc wrenans rind agreements contained in this
<br />Deed of !'rust, ur if any action or protxeding is commence) which rttatcnally :dfecb l.endtr's interest in the Property.
<br />including, Out not limited to, eminent domain, it»ulvency, code en[urecment, ur arrangcneents or proceedings involving n
<br />bankrupt ur decedem, then Lender at Lander i option, upon notice to Borrower, may make such appearances, dishune such
<br />sums and lake such ackmn as is necessary to protect Lerxler's mtertat, including, fiat not limited ro, riishunentent of
<br />reasonable attoraty's fees end entry upon the Property to make repair>. If Linder reyuired mortgage insurance as u
<br />condition of making the loan secured by this Iked of Trust, Borrower obeli pay [he premiums reyuired to maintain artch
<br />ursurance in effect anti! stub Nine as the reyuiremem for ouch insurance tenninaies in accordance with Borrower's and
<br />f..ender's written agreement ar applicable taw. Borrower shall nay the amount of all mungage m i!e the
<br />manner provided under paragraph : ttereaf. - - - ---sr!rata__ pr.±m!_n=_~
<br />Any amounts disbursed by [-ender pursuant m this paragraph 7, with interest thercun, shah become additional
<br />inde4tedness of Borrower sccared by this Dted rat Trust. Unless Borrower rind Lender agree to other terms of payment, ouch
<br />amrwnts shalt fx: payable upon notice tnxn I_under to Borrower royuesung payment thereof, :mil shall bear interest from the
<br />date of dis4trrsemcnt at the rate payable from time w time tin outstanding pnnopal under the Nute unless payment of interest
<br />at such raft would be contrary ur applicable law-, in,pyhtch evens ,uch amounts shall heal inttrev at the htghust rate
<br />pexmiasi4le under agplicalr[t law, Nutthng contained ur thu paragraph 7 shall rtyuirr; !.ender to incur any expense ur rake
<br />arty ae:hcn hereunder.
<br />& (tt~tctloo. Louder mraY make or coast to he made rtaarrr!ahfe surrie-s t,lx4n and insp%ct,rnrs of the Esrupeny. pruv-r,led
<br />that l.rrrdcr shah gave Bortawcr nutlet prwr iu any ouch inspvs:uun spcvtlyrng reasonable tau+e Ifrtretur related Iu 1-ender'>
<br />rnfes~, n ,hr. P d~tit-.
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