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UHtt=•onnt CovsdxNTS. Borrower and Lender covenam and agree as Follows: ~ ~ ~~~ ~ i '~ ~ `3
<br />3. tayteeat of Priacipai aced IMettew. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Nate, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on an Future Advances secured by this Dyed of Tntst.
<br />3. Fsrads fee Tun sad ftasoaaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly insta-lrerents of principal and interest are payable under the Note, until the Note is paid in full.
<br />a sum (t[ercin "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Died of Trout, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />plus otx-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lendee on the basis of assessments and bills and reasonable estimates thereof.
<br />The Ftmds shall be held in an institution cite deposits or accounts of which arc insured or guaranteed by a Federal or
<br />state agency (nctuding Lender if Lender is such an institution). [.ender shall apply the Funds to pay said taxes, assessments.
<br />insurance premiums and ground repo. 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 execunon of this
<br />Dced 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 tie paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shat! give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpox for which each debit to the Funds was [Wade. The Funds are pledged as additional sootily for the sums secured
<br />by this Deed of Twat.
<br />If the amount of the Funds held by Lender, 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 m pay Bard taxes,
<br />assessments, insurance premiums and ground rents as they (all due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited [o BOrroWeC nn monthly installments of Funds. If the amount of the Funds
<br />held by Lender 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 to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds
<br />htld 6y Lender. If under paragraph 1$ hereof the Property is sold or the Property is otherwise acquired by 1_ender. Lender
<br />shall apply. rto later than immediately prior to the sate 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 soured t?y this Deed of Trust.
<br />3. Ap~liratloa of Payments. Unless applicable law provides otherwise, all payments received by [.ender 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 io interest payable on [he Note, then to the principal of [hc Note, and then to interest and
<br />principal on any Future Advances.
<br />0. C6arlges; Lirem. 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, if any, in the
<br />mariner provided under paragraph 2 hereof or, if no[ paid in such manner, by Borrower making payment, when due, directly
<br />to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the
<br />event Borrower shall make payment directly, Borrower shall promptly furnish t ? Lender receipts evidencing such payments.
<br />Borrower chaff promptly dischazye any lien which has priority over this Deed of Trust; provided, that Borrower shall not be
<br />required [o discharge any such hen so long as Borrower shall agree in writing to the payment of [he obligation secured by
<br />such lien in a manner acceptable to Lender, or sF.al! in good faith comest such hen hy, or defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture nt the Property or any part thereof.
<br />$. Iflmrd lmuraaero. Borrower shall keep the imprmements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as [.ender may require: prawded. !hat t.endcr shall not regwre that the amount of
<br />wch rnveragc exceed that amount of coverage required to pay the sums xcured by this Decd of Tnust.
<br />The insurance carrier providing the insurance shall be chosen by Borrower su6lect to approval by Lender. provided.
<br />that such approver{ sha-1 not be unreasonably withheld. A11 premiums on insurance policres s'ttalt be paid in the mamer
<br />provided trader paragraph 2 hereof or, if not paid in such manner, by Harrower making payment, when due, dimtly to th
<br />i~tiraace carrier.
<br />All iasuratrce policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />Clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borzower shaft promptly furnish to Lender all renewal notices artsf all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and [-ender. Lender may make proof of loss if not made promptly
<br />6y Borrower.
<br />Untus Lender and Borrower otherwise agree in writing, insurance prxeeds .hall tx applied to restoration or repair of
<br />the Property damaged, provided such restoration err repatr a er:onomically teasihle and the security of this Deed of Trust is
<br />not tlsercby impaired. If such restoration or repatr is not econnmicatly feasible or ii the security of this [aced of Trust would
<br />be impaired, the insurance proceeds shall tie applied to the sums secured by this I>eed of Trust, wdh the excess, if any, paid
<br />to Borzower. If the Property is abandoned by Borrower, or iE Borrower fails to resfxmd to Lender within 30 days from the
<br />date notice is mailed by Lender to Harrower that the insurance carrier oBers to settle a claim for insurance benefits, (.ender
<br />is authorized to collect and apply the insurance prxeeds at Lender's option etcher to restoration or repair of the Property
<br />or to the sums secured by this Dced of Trust.
<br />Unless Lerati`er and Borrower othereviss ogres :n writing, any such appltcat:ai: of prc?cr=ds to principal shall not extend
<br />or postpone the due date of the monthly installments referred u? in paragraphs I and 2 hereof or change the amount of
<br />such initallenents. If under paragraph Id hereof the Property rs acyuired by Lender, all right. tide and interest of Borrower
<br />in and [o nay insurance policies and m and to :he 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 secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />0. Prnerrntioa amd 11t>~terraace of Property; Leaseholds; Coadomiaioms; Plsotxd Unit Deve/opmeats. Borrower
<br />shat) keep the Property in good repatr ^nd chal3 not cummN w-rite or pe rn?it impairment or deteriariuon of the Property
<br />aiui shall comply with the provisions of any lease if the Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condaninitun or planixd unit development. and consuttrent documents. If a condominium or planned amt developmem
<br />rider is exouitd by Borrower and roorded together with this Deed of Trust, the rovenants and agreentems of such rider
<br />shaft w incorporated inter and shat) amend and supplement the covenant and agreement of this Deed of Trust as if the rider
<br />t[rcrc a prtt hereof. -
<br />T. PretteUoa of header's Seearily. If Borrower fads to perform the covenants and agreements mntaincd in chi.
<br />L3esd o€ Teets[, err if any action or proceeding is rnmmenced which materially affects [.ender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code enforement, or arrangements or proceedings involving a
<br />bankrupt or durodent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse wch
<br />sums artd take such action as is necessary to protect Lender's interest, including, but not limited to. dishurscnrent ,+~
<br />reaaooabte atiwrrey's fees and entry upon the Property to make repairs- If !.ender required rnortg:rge insurance a
<br />condition of making the loan soured by this Deed of Trrst, Borrower shall pav the premiums required to maintain wch
<br />iissurarice in effect un•il such time as Sere requirement for such insurance terminates in accordance with Borrower's end
<br />Lender`s writtco agreement or applicable law. Borrower shall pa} the amount of all mortgage msurancc premiums m the
<br />manner providexl utukr pa ph 2 hereof.
<br />Any atrtouats disbursed by Lender pursuant to this paragraph 7, w-nh merest thereon. shall t?r~nme additional
<br />indebtedtte~ of Harrower secured by this Deal of Trust. Unless 13!xrower and Lender acres to ether terms of oavrnent. such
<br />amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the
<br />date of disbciraeitmat at the me payable from time to time on outstanding principal under the Note tmless payment o[ interest
<br />at wch rate would be contrary to applicable law, in which event such amounts shall bear ~nierest at the highest rate
<br />permissible titrder applicable taw. Nothing contained in this paragraph 7 shall require Lender to incur any expanse c?r take
<br />say aztson hereunder.
<br />& i+rpectioe. tender may make or Gauss to ire made reawnable entries upcm and irnpect~ons of the Property, pro.-idcd
<br />the[ Lender shall give Borrower notice print to any such inspecucin specitying reasonable cause therefor related to I ender',
<br />interest in the Prooerty.
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