|
<br />UNtwonnt Covetvettrs. Borrower and Lender covenant and agree as follows:
<br />!. i!kyrset of Pr[ncep~ cad feNeeesf. Harrower shall promptly pay when due the principal of and interest an the
<br />irtdebtetincss evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances stxured by this Deed of Trust.
<br />`- ~• )Raede tee Tiaes and ifarsraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lendee on the day monthty installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a coin (herein °Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trust, and grouted rents on the Property, if any, plus one-twelfth of yearly premium installments fer hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />utete to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />- The Funds shall be held in an irotitution the deposits or accounts of which are insured or guaranteed by a Federal or
<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 trnts. Lender may not charge for sa 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 />ppeerrmmits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Dced of Trust that interest on the Funds shat! fie paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall no[ be required to pay Borrower any interest or earnings on the Funds. (,ender
<br />shall give to Borrower, without charge, an annual accounting of the Funds shawrng credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds aze pledged as additional security for the sums secured
<br />by this Dced of Trust.
<br />If the amount of the Furrds held by Ixnder, together with the future monthly installments of Funds payable prior to
<br />the dtte 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 fall due, such excess shall be. at Borrower's option, either
<br />promptly repaid to Borrower or credited [o Borrower on 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 Leader any amount necessary to make up the deficiency within 30 days from the date notice is maileJ
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust. [_ender shall promptly refund to Borrower 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 cater than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held b}•
<br />Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br />3. Applk~Ioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 her~f 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 Advanrxs.
<br />4. Chargrs; Lints, 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 not paid in such manner, by Borrower making payment, when due, directly
<br />to the payce 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 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 he
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment aF the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defenJ enforcement of such lien in.
<br />legal pproceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hrit'ard ie:teraace. 8orrowe- shall keep the improvements now existing ar hereafter erected on the Property insured
<br />against Loss by fire, hazards indttded within the term "extended coverage", anJ such other hazards as 1_ender may require
<br />:.ltd in such amounts and for such periods es [_ender may require; provtded, that [.ender shall not require that the amount n(
<br />lush coverage exceed that amount of coverage required to pay the sums secured by thts Deed of Tnust.
<br />The insurance carrier providing the insurance shat! be chosen by Borrower subject to approval by Lender: pn>v?deJ.
<br />that such approval shaiJ not be unreasonably withheld. All premiums on insurance policies shall he paid in the manner
<br />provided leader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />ttasitrauce cattier.
<br />AB insurance policies and renewals thereof shall tx in form acceptable to t_enJer and shall include a standard mortgage
<br />datrse in favor of and in form acceptable to Lender. [_ender shall have the right to holJ the policies and renewals thereof.
<br />acid Borrower shall promptly furnish to Lender all renewal notices and all receipts of pail premiums. in the event of loss,
<br />Borrower shalt give prompt notice to the insurance carrier and Lender. Lender may make proof of loss i( not made promptly
<br />by Borrower.
<br />Unietu Lender and Harrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair Is economically feasible and the security u( thls DeeJ of Trust is
<br />not thereby impaired. If such restoration ar repair is not economically feasible or d the security of this De; d of "Lnist would
<br />be impaired, the irtstrrance proceeds shall be applied to the sums secured by this Decd of Trust, wnh the e~.cess, if any, paid
<br />to Borrower. If tlee Property is abandoneJ by Borrower, or if Eorrower fails to respunJ to Lender wither: 30 days from tfic
<br />date notice is mailed by Lender to Borrower that the insurance canter offers to settle a claim (or insurance benefits. Lender
<br />is authorized to co!la..et arm apply tt>w insurance pro::eecfs at Lender's option eitfier w restoration or report of the Property
<br />or to the sums secured by this Dced oC Trust.
<br />Unless Lender and Borrower otherwise agree in wn:mg, any such application of proct~eds to princtpai shall not extend
<br />or postpone the due date o[ tlfe rttonthl}' instalhreents rcferreJ to in paragraphs i and 2 hereof or change the amount of
<br />suchh Installments. ff under paragraph !R hereof the Propert} ~s acquired by Lender, all right, title and interest of Borrower
<br />in alai to any insurance poiicia artd in and to the proceeds thereof resulting tram damage to the Property poor to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured h} this [lied of Trust immediately prior to such sale ar
<br />acgtitsitian.
<br />Cr. Pirservafian and Mtdateoaace of Property; Leaseholds; Coadotniatiunns; Planned C;nit Ikveiapmeots. Borrower
<br />shall keep the Property' m guoJ report and shalt not aunnut waste ,:r perms[ impmrn?cnt ..r +irtenorauoa of the Property
<br />and shall comply with the provisions of any tease i€ this (teed of Truest is nn a leasehold. If this ^eeJ of Trust is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform, ail of Borrower's obligations under the declaration
<br />or covenants creating ar governing the .urdommium or planneJ umt development, the h}-laws and regulations of the
<br />condominium or planned unit development, artd consntuent documents. It a condominium ar planncJ unit development
<br />rider is executed by Borrower and recorded together with thu Deed tit Trust, the covenants and agreements of wch rider
<br />shall be inwrporaied into and shall amend and supplement the ..xenanh anJ agreements of ihts Recd of "Crust as if the rider
<br />were a part hereof. ,
<br />T. Ptoteetioa of Leader's Smcuritp. if Borrower fads to furform the covenants anJ agreements contained in this
<br />Deed of Trust, or if any action or proceeding is comneerrccd which rtraterially affects !_caJcr's interest in the Property,
<br />including, but not limited ta, eminent domain, insolvency, cede enforcement, or arrangements ar proctxJings invoking :.
<br />bankrupt or decedent, then Lender at Leader's option. upon notice to Borrower. nta}' make such appearances, diahurse such
<br />arms 2nd t2kc st.~h areinn as is necessarry to protect C.enJer's .ntercst. mludine, but not limited tu. Jisbunement I+1
<br />reasonable attorney's fees and entry upon the Property rvr ma6e repairs If Lender reyuireJ mortgage insurance as a
<br />candiGon of making the loan secured by this DceJ of Trust, Borrc+wrr shall pa}' the premiums required to n?aintain wch
<br />insurance in effect un~il such time as the requirement for such insurance terminates tit accordance with Aorrower's anJ
<br />Lender's wtiL.wt agrcemertt or applicable law. Borrower shalt pa} tfie amount of alt mortgage insurance premiums u? the
<br />manner provided under paragraph 2 hereof.
<br />_ Any amounts dishtused 6y Lender pursuant to this paragraph 7, with interest thereon, shall heconre ndditionui
<br />iltdebi tress of Harrower secured by this Decd of Trust Unicss Borrower and 1 cteJer agree to other terms of psynunt, such
<br />amotttRS shat! fie payable upon native from !..ender io Borrower requesting payment thereof, and shall hear interest from the
<br />date of disbursement at the race payable from time to time on outstanding principal under the tiote unless pay'mcnt of interest
<br />at such rate wouht isc contrary to applicable law, in which event such amounts shall hear interest at the highest rate
<br />permisaibk under applicable taw. Nothing contained in this paragraph 7 shall require Lc.+der to ins ur any expense or take
<br />any action htretmdtr.
<br />ll. Iaspcetian. tinder may make or cause to fie made real.+nablc emries upon anJ mspeinons of the Pre?Ix rty, ix;,s tJiJ
<br />ihxt Lender shall give Borrawex notice prior to any such inspection specifying reasonahle cause therefor rrl:ueJ to 1 enJc~r'+
<br />iMCrest in t}te Praatrty.
<br />
|