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<br />Utvttrwta CoveNnrrrs. Borrower and Ixnder covenant sad agree a follow}: R i „m„ ~ t r ~ 6
<br />1. lhptaeat of PrIeNpN sad Intense. Borrower shall promptly pay when d€t~ rtte principal of and interest on the
<br />indtbtedrtess tvidtncad by the Note, prepayment and late charges as provided in the Noie, and the principal of and interest
<br />on any Ftelure Advancer recured by this Decd of Tntst.
<br />3. lhseia fx'1'aua seed lasmraace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly instapments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a sum (herein "Funds") egad to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />feed of Trust, and ground rents on the Property, if any, plus otu-twelfth of yearly premium installments for hazard insurance.
<br />pith vita-twelfth of scanty premium inataiimcros for mongage insurance, if any, all as reasonably estimated initially and from
<br />time to firm by Lender an the basis of assessments and bills and reasonable estimaces thereof.
<br />Tht Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency fireduding Lender if Lender is such an instiWtion). Lender shall apply [be Funds to pay said taxes, assessments.
<br />ittstrrance premiums and ground rents. Lender may rrot charge for so holding and applying the Funds, analyzing said account
<br />or verifying and compiling said as~ssmenta 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 True that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interpt to be paid, Lender shall not be rcquircd to pay Borrower any imercst or earnings on the Funds. Lender
<br />shall give to Borrower, without chuge, 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 are pledged as additional security for the sums ucured
<br />by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly installmems of Funds payable prior to
<br />the due dues of taxes, assessments, insurance premiums and ground rents, shall exceed the amount rcquircd to pay said razes,
<br />assessments; imurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lendsr shall 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 ao make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting paymena thereof.
<br />Upon payment in full of ail sums secured by this Deed of Trust, Lender shall promptly refund to Borrawer any Funds
<br />held by Lender If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later Shan immtdratdy prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender a[ the dime of application as a credit against the sums secured by this Deed of Trust.
<br />3. Applieatfon of Faymeats. Unless applicable law provides otherwise, 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 on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />0 Charges; Irtos. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which tray attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any, in the
<br />mantrer provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly
<br />to the pays thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the
<br />evtne 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 over this Deed of Trust; provided, that Borrower shall not be
<br />rcquircd to discharge any such lien so long as Borrower shall agree in writing [o the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
<br />legal PProceedings which operue to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Ilaaad Itrsuraam. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, haaards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Beed of Tn+st.
<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 premiums on insurance policies shall be paid in the manaw
<br />pravi~ tt^_der pua~raph 2 hergf or, if not p:id in such manner, by Bo :~.ver making payment, when due, dircctiy €o the
<br />insurance t:arriu.
<br />AI7 insurance policies and renewals thereof shah be in form acceptable to Lender and shall include a standard mongage
<br />stause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />sad Borrower shaft promptly fmnixh to Lender all renewal notices and all receipts of paid premiums. Iu the event of loss,
<br />Borrower shalt give prompt notice fo the insurance carrier and Lertder. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair of
<br />the Property damaged, provided such restoration or repair is economically (easible and the security of this Deed of Trust is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would
<br />be impaired, tlce insurance proceeds shall be npptied to the sums secured by this Decd of Trust, with the excess, if any, paid
<br />to Borrowee. !f tbe Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mnikd by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
<br />is auahorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the :urns secured by this Deed of Trust.
<br />Unless Lender arxf Horrowu otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or tpone the due dear of the monthly installments referred to in paragraphs t and 2 hereof or change the amoum of
<br />sash inatallrt~nls. if under paragraph I8 hereof tf€e Profxny is acquired by Lender, all right, title and interest of Borrawer
<br />in and to say tnsurartce policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall past to Lender to tbe extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />6. Precervuloa sad Mtiateeaase ~' Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall kelp the Progeny in goal repair and shall ROi commit waste ur permit impairment or deterioration of the Property
<br />and shall wmply with the provisions of any Rase if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condaninium or a planned unit development, Borrower shall perform all of Borrower's obtigatiens under the declaration
<br />or. cgvt<QpptS Cit:9ligg, pr. governing the condominium or planned unit deveiopmen¢, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned trait development
<br />rider is executed by Borrower and raorded together with this Deed of Trust, the covenants and agreements of such rider
<br />shall be incorporated into and shalt amend and supplement the covenants and agreements of this Deed of Trust us if the rider
<br />were a part hereof.
<br />Z PttWeedoa of LeadtPS 9ecnsity. If Borrower fails to perform the covenants and agreements contained in this
<br />Dced of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but riot limited to, emirtent domain, insolrency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decadent, then Lender at Lender's option, upon notice to Borrower, fray make such appearances, dishurse such
<br />sums and take such action as is neceuary to protect Lender's interest, including, but not limited to, disbursement of
<br />reaaaaable attorrrcy' fen and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />coaditian of makrng 4ht loan soured by this Deed of Trust, Borrower shall pay the premiums required to maintain such
<br />itKUrance in effort un+il such titrte as the requirement for such insurance terminates in accordance with Borrower's and
<br />Lender`s writttn agreement or applicable law, Borrower shalt pay the amount of all mortgage insurance premiums in the
<br />manner prcwidtd under paragraph 2 herwf.
<br />An}}' amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />indtbtedntss of Borrower secured by this Decd of Trust. Unless Borrower and Lender agree to other terms of payment, such
<br />amount: shall be payable upon ruNice from Lender to Borrower requesting paymena thereof, and shall bear interest tram the
<br />date of disbursemcnl at the rat payable from that to time on outstanding prnncipal under the Note unless payment of inicresi
<br />at'wch raft would be contrary to applicable law, in which event such amoums shalt bear interest a€ the highest rate
<br />permiaible under applicable law. Nothing carttained in this paragraph 7 shall require Lender to incur any expense or take
<br />any action htretrarder.
<br />i. lettpettlaa. Lender may make ar cause to be made reasonable entries upon and inspections of the Prupeny. provided
<br />tha! l.et~r shaA give Borrowu rwtiee prior to any such inspection specifying reasonable cause therefor related to tender's
<br />mterett in tent Property.
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