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<br />Utvriroan+ Covetvnivrs. Borrower and Lender covenant and agree as follows:
<br />L Pa7-meet of Pdneipal and Ivterest. Borrower shall 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 />on any Future Advances secured by this Decd of Trust.
<br />2. Fads for Tees and Isatace. Subject to applicable law or to a written waiver by fender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a sum (herein "Funds') equal to one-twelfh of the yearly taxes and assessments which may attain priority over this
<br />Decd of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as seasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Frmds shall 6e held in an institution rho deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Ixnder if Lender is such an institution). l..ender shall apply the Funds tv pay said taxes, assessments.
<br />insurance premiums and ground rents. Lender may not charge for so holding and :+pplying the Funds, analyzing said account
<br />or verifying and compiling said assessments and bills, unless fender pays Borrower interest on the Funds and applicable law
<br />permits Lender [o make such a charge. Borrower and Lender may agree in writing at the time ~Af execution of this
<br />Geed of Trust that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid. Lender shall not be required to pay Borrower any interest 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 sums secured
<br />by this Deed of Trust.
<br />If the amount of the Funds held try Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates bf 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 (all due, such excess shall he. at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on mvnthly 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 in make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Decd of Trust, Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. ff under paragraph 18 hereof the Property is sold nr the Property is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately prior to the sale of the Property yr its acquisition by Lender, any Funds hell by
<br />Lender at [he time of application as a credit against the sums secured by this Deca of Trust.
<br />3. Applicatlon of Payments. Unless applicable law provides otherwise, all payments received ny Lender under the
<br />Note and paragraphs 1 and 2 hereof shat! he applied by Lender first in paymcm of amounts payable to Lrnder by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nnte, then to the principal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />4, Charges; Liens. Borrower shall pay all lazes, 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. Harrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the
<br />even[ Borrower shall make payment directly, Borrower shall promptly furnsh to I-ender receipts evidencing such payments.
<br />Sorrower shall promptly dischazge any lien which has priority over this Deed of Trust: provided. that Borrower shall not he
<br />required [o discharge any such lien so long as Borrower shall agree in wasting to the payment of the obiiga«on secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest sue' Sren hy, or defend enforcement of such lien m.
<br />legal proceedings which operate [o prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Ilaaard Insnrantt. Borrower shall keep the improvements now exrsung or hereafter erected on the Property insured
<br />against loss by fire, hazards included wi[hia the term "extended coverage". and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Decd of Trust.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject to approval by I-ender: provideJ.
<br />that such approval shall oat be unr-__-asona~tly withheld. All premiums nn insurance policies shall he paid in the manner
<br />provided under paragraph 2 h~rrnf or, if nut paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance t~trier.
<br />All insurance policies a :d renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage
<br />clause in favor of and in fern acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts e:f paid premiums. in the even of ions,
<br />Bottower shall give prompt notice to the insurance carrier anJ Lender Lender may make proof of loss if not made promptly
<br />by Burrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restorativn or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible :rod the security of this Ueed of Trust is
<br />not thereby impaired. if such restoration or repair is not economically feasible or i(the security n( this Deed of Trust would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Deed of 'trust, with the excess, if any, paid
<br />tc Burrower. If the Property is abandoned by Horrvwer, ar if Borrower fails tv respond !e Lender within 3p days from the
<br />date notice is matted by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lem'er
<br />is authorized [o collect and apply the insurance proceeds a[ Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such applicatior. of proceeds to principal shall not extend
<br />or postpone the due date of [he monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph I8 hereof the Property is acquired by Lender, all right, tide and interest of Harrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to [he extent of the sums secured by this Deed of Trust immediately prior to such sale or
<br />acquisition.
<br />fi. P[eservation and Maintenance of Property; Leaseholds; Condominiums; Plamrred Uni[ Developments- Borrower
<br />shall keep the Property in good repair and shall not commit waste or pennu impairment or deterioration of the Property
<br />acrd shall comply with the provisions of any lease if this Deed cif "trust is on a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or a planned unit development, Borrvwer shall perform :dl of Borrower's obligativns under the declaration
<br />uF covenants creating or governing the condominium or planned unit development, the by-laws and regulation ut the
<br />condominium or planned unit development, and constituent documents. if a condominium or planned unit devekpmcm
<br />rider is executed by Borrvwer and recorded together with this Deed of Trust, the covenants and agreements of such rider
<br />shag be incorporated info and shall amend and supplement the covcnaNs and agreevren[s of this Deed of "Trust as if the rider
<br />were a part hereof.
<br />7. Protecliom of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Deal of Trust, or if any action or proceeding is commenced which materially affects Lender interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arr.+vgcmenis or proceedings involving a
<br />bankrupt yr decedent, then Lender at Lender's option, upon notice to Burrower, may rnake such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders interest, including, but not limited w, disbursement i ,
<br />reasonable attorney's fees and entry upon the Property tv make repairs. If Lender required mortgage insmancc as .~
<br />condi«on of making the Loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain weir
<br />insurance in effect unit such «me as the requirement for such insurance terminates in accordance with Borrower's and
<br />Lender's written agreement or applicable law. Borrower shall pay the amount ut all mortgage insurance premiums ur the
<br />maruter provided under parsgraph 2 hereof.
<br />An' amvunts disbursed by Lender pursuant to this paragri ph 7, wash interest thereon, shall tx enure addmonai
<br />indebtedness of Borrower secured by this Deed of Trust. Unless Burrower and Lender agree to other term of paynreni, vieh
<br />amounts shalt be payable upon notice from Lender W Borrower rcyuesting payment thercvf, and shall hear interest tram the
<br />dace of tiisburstment at the rate payable from time tv time on outstanding principal under the Note.uniess payment of interest
<br />at such rate would be contrary to applicable law, in which even[ .uch amvunts shall hear interest :u the highest rate
<br />permissible under applicable taw. Nothing contained in this paragraph '? shall require i-ender to incur any expense ur take
<br />any action hereunder.
<br />& laaptetion. Lender may make or cause to he rustic reasonable entries upon anti ,npcarom of the Pcopeit}, pun nicd
<br />that Lender shelf give Borrower notice prior to any such inspection specifying reasonable cause iharetnr related is Lendct\
<br />interest in the ProDeriv.
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