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<br />$1.°-~Of106~4
<br />UN/FORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shat! promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />an anyy Future Advances secured by this !Deed of Tnrs1.
<br />Z. lirauuds far Taitea and Irrsnrasce. Subject to applicable law or to a written waiver by Lender, Harrower shall pay
<br />to lender an the day monthly installments of principal tied inrcrest are payable under the Nette, until the Note is paid in full,
<br />a sum therein "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 fhe Property, if any, plus one-twelfth of yearly premium installments for hazard Insurance.
<br />plus one-twelfth of yearly premium installmems for mortgage insurance, if any. al! as reasonably estimated initially and from
<br />nine to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institwion the deposits or accounts of which are insured or guarameed by a Federal or
<br />state agency {including Lender if Lender is such an instiuition). Lender shall apply the Funds to pay said taxes, assessments.
<br />insurance premiums and ground tents. 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 !-ender 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 be pail, Lender shall not be reyuired w pay Borrower any inrcrest 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 was made. The Funds are pledged as additional security for the tutee 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 payable prior tit
<br />the due dales of taxes, assessments, insurance premiums anJ grounJ rents, shat! execcJ the amount required to pay said texas,
<br />assessments, insurance premiums anJ grou~id rents as~hey full Jue, wch excess shall he, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower nn monthly installments of Funds. if the amount of the Funds
<br />hell by LenJer shall not be sufficient to pay texas, 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 Jays from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full ofatI sums u:cured by this DeeJ of Tnut, Lrnder shat! promptly refund to Borrower any Funds
<br />held by Lender If under paragraph l8 hemof the Propery is sold ur the Property is otherwise acyuireJ by Lender, Lender
<br />shall apply, no later than immediately prier tit the sale of the Property or its acyuisiuon by LenJer. any Funds held 6y
<br />Lender at the time of application as a credit against the sums secured by this DeeJ of Trust.
<br />3. AppBcation of PaymenLS. Unless applicable law proviJes otherwise, all payments receive) by Lender under the
<br />Note and paragraphs !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 />4. Cbar><es; Liens. Borrower shall pay a!I taxes, assessments anJ other charges. fines anJ impositions anributable to
<br />the Property which may attain a priority over this Deed of Trust, and IeaseholJ payments or ground rents, if any, in the
<br />manner provided under paragraph 2 hereof or, if not pail in such manner, by Burrower making payment, when due, directly
<br />to Ilte payee [hereof. Borrower shalt promptly furnish to Linder all murices of amounts Jue under this paragraph, and in [he
<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 prority over this lleed of Trust: provided, that Borrower shat! not be
<br />required to discharge any such hen so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable ro Lender, or she!! in goof faith contest such lien hy, or defenJ enforcement of such lien in.
<br />legal pproxeedings which operate to prevent the enforcement of the hen ar Forfeiuirc of the Property or any part thereof.
<br />S. Hazard lasuraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agaimtloss by fire. hazards included within the term "exte.^.ded coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may rcyuire; provide). that Lender shall not require [hat the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the sums secured by this Decd of Tnist.
<br />The i.•ssurarce carrier providing the insurance shall be chaser. by Harrower subject to apprava! by Lender; provided.
<br />t1;at such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />p[ovid~ under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when ifue, directly to the
<br />ImWrBnCe CarTIW.
<br />All insurance policies and renewals thereof shall be in form acceptable w Lender and shall include a standard mortgage
<br />clause in favor of and in form accepiabte to Lender. Lender shall have the nght to ho1J the policies and renewals thereof.
<br />and lorrower shall promptly furnish to Lender all renewal notices and all roceipts of paid premiums. In the event of loss.
<br />Borrower shat) give prompt notice to the insurance carrier anJ LenJer. LenJer may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall 6e applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security oC this DeeJ of Tntst is
<br />not thereby impaired. If such restoration or repair is not ceonumically tensible ur if the security of this Deed o[ Trust would
<br />be impaired, the insurance proceeds shall be applieJ to the sums secured by this lleeJ of Trust, with the excess. if any, paid
<br />to Borrower. !f the Property is abandoneJ by Borrower, or if Borrower fails w respond to Lender within 30 days from the
<br />dale notice is maileJ by Lender to Borrower that the insurance carrier offers to scale a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />of to the sums secured by this Dced of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any wch application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referreJ ro in paragraphs t and ?hereof or change the ::mourn of
<br />such installments. If under paragraph 18 hereof the Property is acyulred by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and w the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secwed by this Deed of 'Crust immediately prior to such sale or
<br />acquisition.
<br />Pressrvatbr. and Malaleaarrsa of Property; Leaseholds; Condomiaiuins; Preened Uait llevelopatcats. Borrower
<br />shall keep the Property in gotxl report anJ shall not uannut Hutc or Itenmi impninucnt or Jelerioration of the Property
<br />and shall comply with tbe provisions 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 planired unit development, Borrower shall perlonn nil of Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium or planneJ unit development, the by-laws anJ regulations of the
<br />condominium or planned unit development, and consutuem documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recordeJ together with this Deed at "trust, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants auJ agreements of this DeeJ of Trust as if the rider
<br />were a part hereof. '
<br />7. Profecdoa of Leader's Security. If Borrower SaJs to perform the covenants and agreements contained in this
<br />Deed of Trust, or if any action or proceeding is wnuuenced which materially aSects Lender's interest in the Property,
<br />including, but not hmited to, emitrent domain, insolvency, code enforcement, or arrangemenU or proceedings involving a
<br />bankrupt or decedent, then Lender at Leader's option. upon mice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but net limited to, disbuncment of
<br />reasonable attorney's foes and entry upon the Property to make repairs. if LenJer reywreJ mortgage inwrance as a
<br />cottditiat of making the loan secured by this Deed of Trust, Borrawer shall pay the premiums reyuired to ntnintain such
<br />insurance in effect until such time as the rcyuirement for such insurance terminates in accordance with Borrower's and
<br />Lender's written agreement or applicable law. Bormwcr shall pay the anwtint of all ntor[gage insurance premiums i^ the
<br />msttntr provided uritler paragraph 2 hereof.
<br />My amounts disbutacd by Lender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />itakbtedness of Borrawer secured by this Decd of Trust. Unless Borrawer and Lender agree to other terms of payment, such
<br />atrutunts shall be payable upon notice from Lender to Borrower rcyuesting payment thereof, and shall bear interrst front the
<br />dale of disbutsetnent at the rate payable from time to time on outstanding principal under the Note unless payment of ineerest
<br />u ouch rate would 6e contrary io applicable taw, in which event such amuwus shall tzar interest at the highest rate
<br />permissible under applicable law, Nothing contained in this paragraph ?shall rcyuire lender to incur any expense or take
<br />any action lrcratttirfer.
<br />Iti fatgteetio4f. Lander may make oc caux ta be made rcasunabtc cntnes upon an.l inspcetions of the Property. Pr11PiJeJ
<br />that Leirdtr she!! give Ba![Ower notice prtar to any su:h inapeetx n specitytng reasonable cause therefor relate) to I.enJer's
<br />inietail In tlrt Protxrtv.
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