|
8~~ 0013'5
<br />Uxttronnt CovexeNrs. Borrower and Lender covenant and agree as fellows:
<br />1. !>ptmeot of Priaclpal sed IMereat. Borrower shall promptly pay when due the principal of and interest nn the
<br />indebtedness evidettred by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Dced of Trust.
<br />Z. Fads I!®r Ta>RS ad Irartomaace. Subject to applicable law or to a written waiver by Lender, E.;rrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the No[e is paid in full.
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Deed of Trus4 and ground rents Pr. the Property, if any, plus one-twelf ih of yearly premium installments fur hazard insurance.
<br />plus otte-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and 6iBs 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 or
<br />state agetR;y (txlttding Lettdez if Lear is such an institution}. Lender shall apply the Funds to pay said taxes, assessments.
<br />ittsurartce premiums amt ground Batts. Lender may not charge for so holding and applying the Funds, analyzing said account
<br />or vettifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender [o make •s :.h a charge. Borrower and fender may agree in writing at [he time of execution of this
<br />Deed of Text that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires s• ~h interes: to be paid. [_ender shall not 6e required to pay Borrovrer any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of *.he Funds showing credits and debits to the Funds and the
<br />putgoae for which each debit to the Funds was made. The Funds are pledged as additions! security for the sums secured
<br />by this Dced of Trust.
<br />[f the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dales of taxes, assessments, insurance premiums and ground rents, shag 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 />prattptly repaid to Borrower or credited [o Borrower on monthly installments of Funds. If [he amount of the Funds
<br />held by Lender shag trot 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 Lender to Borrower regtesting payment thereof.
<br />Upon payment in full of all sums secured by [his Deed of Trust, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender Lender
<br />shall apply, no later than tmmediately prior to the sale 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 secured by this Deed of Trust.
<br />3. ApPlicstHOa of Payments. Unless applicable law provides otherwise, all payments received by I_euder under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by !_ender 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 Notc, and then [o interest and
<br />principal on any Ftrture Advances.
<br />4 Charges; Liens. 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 />maaaer 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 famish 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 evidenrng such payments.
<br />Borrower shall promptly discharge any Tien 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 of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shat! in good faith contest such lien by, or elefend enforcement of such lien in.
<br />legal pproceedings which operate [o prevent [he enforcement of the lien or forfeiture of the Property or any pan thereof.
<br />5. Beard Iasttraatt. Borrower shall keep the improvements now e.xaung or hereafter erected on the Property insured
<br />against lose by 5re, hazards included witfiiri [he term "extended coverage°, and such other hazards as 1_ender may require
<br />and in such amounts and for such periods as Lander may require: provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of wverage required to pay the sums secured by this peed of Trtst.
<br />The itsurance carrier providing the insurance shat! tx chosen by Borrower subject to approval by Lender, provided.
<br />that sorb approval shall not be unreasonably withheld. Ail premiums on insurance policies shall be paid in the manner
<br />provided [trader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance t:arrier.
<br />All insurance policies and renewals thereof shalt 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 Borrower shag promptly furnish to Lender all renewal notices and alt receipts of paid premiums. In the event of loss.
<br />Borrower shag give prompt notice to the insurance carrier and Lender. Lender may make proof of toss iC not made promptly
<br />by Borrower.
<br />Unless 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 rs economically feasible and the security of this Deed of Trust is
<br />no[ thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would
<br />be impaired, the insurance proceeds shag be applied to the sums secured by this Decd of Trust, w;ih the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 3!) days from the
<br />date notice is mailed by Leader [o Borrower that the insurance carrier offers to settle a claim for insurance beneF.ts. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to rector<tion or repair of the Property
<br />or to the sums secured by this Deed Pf Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principa! shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. if under paragraph 18 hereof the Property is acquired by I_cnder, all right, title and interest of Borrower
<br />m and to any insurance polictes and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition she?I pass to Lender to the extent of the sums secured ts} this Deed of Trust immediately prior to such sale or
<br />acgtsisition.
<br />6. Prtttiervatba and hlttiateeaace of Property; Leaseholds; Condominiurtts; Planned Unil Developments. Borrower
<br />shat) keep the Property in goad repair and shall not cummrt waste or permu impairment or deterioration of the Property
<br />and shat! comply with the provisions of any lease if this Decd of Test 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 8orrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the b}'-laws and regulatium of the
<br />eottdomiaitrm or planned unit development, and constttuent documents. If a condominium or planned unit developmem
<br />rider is executed by Borrower and recorded together with this Deed of "trust, the covenants and agreement of such rider
<br />she!! be incorporated into and shat! amend and supplement the covenants and agreements of this Deed of "trust as if the rider
<br />were a part hereof.
<br />7. Prelectioa of Leader's Security. If Borrower fads w perform the covenants and agreements contained in this
<br />Dced of Trust, or if any action or ptoxetling is commenced which materially affects Lender's interest in the Property,
<br />including, but trot limited to, eminent domain, Insolvency, code enforcement, Pr arrangement or proceedings involving a
<br />bankrupt or d¢cedent, then Lender at Lender's option, upon notice to Borrower, ma}' make such appearances, disburse such
<br />sums and take such action as is nectssary to protect Lender's imerest, including, but not limited to, disbursement of
<br />iesiouab?z attorr,cy's fE2s a6d curry upon tt~e Ptupett} to nlsne tepsirs. tf Lender required mortgage insurncc as a
<br />condition o[ making the Foan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such
<br />:zstarattce in ef,rxt ua'if such lime as the requirement for such insurance terminates in accordance with Borrower's and
<br />L¢ad¢r's written agreement or applicable taw. Borrower shall pat the amount of a{I mortgage insurance premiums m the
<br />manner provided utttYxr paragraph 2 hereof.
<br />Anyy amPtlnLS disbumed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional
<br />ittdebledntss of Borrower secured by this Dced of 't'rust. Unless Borrower and lender agree to other terms Pf payment, such
<br />amounts shag 6e payable upon nruice from Lettd¢r to Borrower requesting payment thereof, and shall h¢ar interest from the
<br />date of disburtt¢tneot at rite rate payable from time to time on outtanding principal under the Note unless payment of interest
<br />at such taro would be contrary to applicable law, in whtch event such amounts shall ricer utterest a[ the highest rate
<br />petmisaibl¢ under applicable law. Nothing contained in this paragraph ?shall require lender to incur any expense or take
<br />any action herewtder.
<br />g• IatlpecfiDa. [.ender may make or ,souse ro be made reasonable entries upvn and inspecuons of the Property. pnwided
<br />that l.xnder shall giro Borrower notice prior tP any such inspn:tlun sp¢cifying reasonable ~.:auu tiscrefor retateef to Icnder~s
<br />+ntetCa[ in the PiPt3t:ziv.
<br />
|