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UxrPOtext irovENANTS. Borrower and lender covenant and agree as follows: ~ ~ ~ U ~j ~ ~ ( 4
<br />1. Rtlraeat of Prindrati sad IMertestt. Borrower shall promptty pay when due the principal of and interest nn the
<br />ictdcbtednesa evidenced by the dote, prepayment and fate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Deed of "Trust.
<br />1. Ft~ttr for ?tots rtitN Irtwraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Linder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in fidh
<br />a sum (herein "Funds°) aqua! to orte-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 />i~ ors-tsvelfih of yearly premium installments for tstortgage insurance, if any, all as reasonably estimxled initially and from
<br />time fo time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal w
<br />state agency (including Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground tents. Lender may not charge for zo holding and applying the Funds, analyzing said account
<br />or verifying artd compiling said assesxtneMS and bills, unless Lender pays Borrower interest on the Funds 'and applicable law
<br />permits 1_endee to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Deed of Trost that interest an the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender sha0 not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give [o 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 uledged as additional security for the sums secured
<br />by this Deed of Trust.
<br />If the amount of the Funds held by Ixnder, 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 taxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
<br />promptty repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amotmt of the Funds
<br />held by Lender shall not he sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount necessary ro make up the deficiency within 30 days from the date notice is mailed
<br />by Lender ro Borrower requesting Payment thereof.
<br />Upon payment in fall of all sums secured by [his Decd of Trust. Lender shall promptly refund [o Borrower any Funds
<br />held by Lender. If under paragraph I g hereof the Property is sold or the Property s otherwise acquired by 1_ender. Lender
<br />shaft apply, no later than tmmedrately prior to the sale of the Property ar its acquisuion 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. ApplicaBan d PttyoeaM. Unless applicable law provides otherwise, atl payments received by tender under the
<br />Note and paragraphs 1 and 2 hereof shall tx 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. CMrges; Liars. Borrower shall pay all taxes. assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, i€ any, in the
<br />matraer ptovidtd under paragraph Z hereof or, if not pail in such manner, by Borrower making payment, when due, directly
<br />to the payer: thcrecf. Borrower shall promp¢ly furnish to Lender all notices of amounts due under this paragraph, and in the
<br />even[ Borrower shall make payment directly, Borrower shall promptly turmsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trus.: provided. that Borrower shall not he
<br />required Eo dixharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall m good (with contest such lien by, or defenJ enforcement of such lien in.
<br />legal pproceedings which operate to prevent the en(orc-ement of the lien ur forfeiture of the Property or any part thereof.
<br />S. Heard lasursaee. Borrower shall keep the improvements now exisnng u`r hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "eztenJed coverage". and such other hazards as !.ender may require
<br />and in such amounts slid for such periods as Lender may reywre; provided, ;hat [.ender shall oat require that the amount of
<br />such covttage exeeetl that amount of coverage reyuircd to pay the sums secured by this Deed of Tnist.
<br />The insurance carrier providing the irtsurare_e shall M chosen by Itarrawer subfect to approval by ! :•nder, poivideJ,
<br />that such approval shall tint be unreasonably withheld. All premiums on insurance policies shall he paid in the manner
<br />provided tinder para~ap6 2 hereof w, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />imuraace carrier.
<br />All insurance policies and rcrtewak th~rcot shall Ix: in term acceptable to !.ender and shall include a stan+(ard mortgage
<br />clause in favor of and in form acceptable to 1_rndec Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices ant all receipts of pail premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance earner ant 1_enter. Lender ma} make proof of loss i( nut made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise ague in wrung inwrance pn><eeds shall bl applied to restoration or repau of
<br />the Property damaged, provided such restoration ur repair is curnom+eally tensible and the security of this DeeJ of 'crust is
<br />[tot thereby impaired. It such restoration w repair is not economically teasih{r ur a the security of this lleed of Tnist would
<br />tx impaired, the insurance proceeds shalt be applied to the sums secured by this Dead of !Yost, wah the excess, if any, pail
<br />to Borrower, if the Property is abandoned by Borrower, or it tforrawcr fails ro respond to Lender within 30 days from the
<br />date notice is mailed by Lendrr to Borrower that the insurance earner offers to settle a claim for insurance benefits. Lender
<br />is authorized to collet and apply the insurance proceeds at Lender's option either N restoration or repair of the Property
<br />or to the sutras secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in wripng, any such application of proceeds to principal shall not extend
<br />or postpone the due date o{ the monthly imtailments referred w in paragraphs 1 and Z hereof or change the amount of
<br />such installtttenis, If tinder paragraph I S hereof the Property is aeyuired by lsnder, a!I right tide and interest of Borrower
<br />in and to any insurance policies and m aril to the proceeds thereof reaulung from damage to the Properly prior to the sale
<br />or rtcyuisition shall pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior ro such sale or
<br />acquisition.
<br />6 PraservaHaa sad Mamleasnce of Property; I.easehefds; Condemiaiuam: Planned Unit Dcvelopmcnts. Borrower
<br />shall keep rite Property in good repair and chat! nut eomnut waste or pennn impairment or Jetenoration of the Property
<br />and shall comply whit the provisions of ang~ least if this Teed of Trust is on a leasehold. If this Decd of Trust is on a unit in a
<br />condominium ur a planned unit development, Borrower shall pecfornt al! ut Borrower's obligations under the declaration
<br />err covertaats creating or governing the condominium ar planted unit development, the by-laws ant regulations of the
<br />cottdominitrm or planned unit devetoprncnt, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and iYCOrdeJ together with this Decd u[ l~rust the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and suppkrnent the covenants ant agreements of this Deed of i'rusi :r3 i( the rider
<br />w€re a part heru~f.
<br />1. ltratecfios of Lenity's x3«aaity. If Borrowrr fails to perform the covenants and agreements contained in this
<br />Deed M Trent, or if say action ar proceeding is r~-nrneneed which materially affects [snderc interest in t:tr Property,
<br />irtchading, hart ttOi limited to, eminent domain, itrsotveruy, axis entorcemcnt or arrangements or proceedings involving a
<br />bankrupt or daYdent, then Lerxier a[ Lerxltr's option, upon notice to Borrower, may make such :+ppearances, Disburse such
<br />sums slid take such aCion as is necessary to protect Lender's interest, induding. but nor limited tu, disbursement ut
<br />reawnable attosney~ fees and entry upon the: Property to make repairs. If Lender reyuired +nurtgage insurance a, :.
<br />condition of making the loan secured h'~ this Deed of 'Trust, Borrower shall pay the prcoiiunis rcyuircd to maintain such
<br />irnuranre in eHeet unfit such time as the reyuiremtnt for such insurance terminates in accordance with Borrower's ant
<br />Ltttder's written agreet~m w applicable law. Borrower shalt pa} the amount of ail mortgage insurance premiums in the
<br />ntartner provided ands paragraph 2 hereof.
<br />~ ARy urrcprnts disftursetl by Lerufer pursuant :u ttris paragraph ', with interest thereon, shalt M~ome additional
<br />i btedrnss of Bwrowtr stcurtd by this Deter of Tnsst. Linters Borrower and {.ender agree to other terms ul payment, such
<br />a[Stottnts shalF lie payal+le upon iwtice from tinder to Borrower requesting payment there, f, and shalt tear interest tram the
<br />dolt of disMrtseioeai at the rain payable !coin iirne to time on outstanding prrncipa! under the Notr unless paymem of interest
<br />at such rate would be contrary to applicable taw, an which event such amounts shall txxar :ntrrest at the highest rate
<br />pttm~tibk uudtr applieatrle law. tiothing contained in this paragraph ?shad reyuire I_eneler to incur any expense or take
<br />any a.Yiott hartta,ndtr.
<br />B. 1•tbptttlso. I_tnder easy make s>r coast to be made risk nabM colors upon oriel mstx;cnons of the Proprng, procidei)
<br />thee l_anc~itr shalt glut Boy€uwtr rtaues prior to nny such rnspecteua cpecifymg reasanahic cause ehercfea ;rlatrJ to i_rnder`.
<br />xntoatest is the Prtwarty.
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