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if Harrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency dincluding Lender if Cender is such an institution). Lender shall apply
<br />the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />and agplyiog the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lander
<br />gays Borrower interest on the Funds and applicable law permits Cinder to make such a charge. Borrower and Lender
<br />~ may agrce in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower,
<br />acrd unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be'required
<br />~ to I>ay Borrower any interest of earnings on the Funds. Gender shall give to Borrower, without charge, an annual
<br />~ mc~trnting of the Fins she>wirg credits atstt debits to the Funds al!d the purpose for which each debit to the Funds was
<br />° made. The Funds are-pledged as additional security for the sums secured by this Deed of Trust.
<br />~ tf the amount of the Funds beld by Lender, together with the ftrttrre 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
<br />-~f taxes, assessments, insurance premitutrs and ground rents as they fall due, such excess shall be, at Borrower's option,
<br />either promptly repaid to Borrowu ar credited to Borrower on monthly installments of Funds. If the amount of the
<br />Funds heW by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall
<br />due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one of more payments as Lender
<br />may require.
<br />Upon payment in foil of all sums scrotal by this Deed of Trust. Lender shall promptly refund to Borrower any
<br />Funds held by Cender. If under paragraph 1? hereof the Property is sold or the Property is otherwise acquired by
<br />Lendtt, Lender shall apply, fro later than immediately prior to the sale of the Property or its acquisition by Linder, any
<br />Funds held by Lender at the time of application as a ctaiit against the sums secured by this Deed of Trust.
<br />3. Applitxrtlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />the Note acrd paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borrower under pazagraph 2 hereof, then to interest payable an the Note, and then to the principal of the Note.
<br />4. Prfor Mortgage and Deeds of Trost; Charges; Lies. Borrower shall perform all of Borrower's obligations
<br />under any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust,
<br />inc}trding 8orrowet's covenants to make payments when due. Borrower shall pay or cause to be paid ail taxes,
<br />assessments and other chazges, Hues and impositions attributable to the Property which may attain a priority over this
<br />Decd of Trust, and leasehold payments or ground rents, if any.
<br />5. Hazard Ins~te. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term °extended coverage". and such other hazards as Lender
<br />may require and is such amounts and for such periods as lender may require.
<br />The inswance carrier providing the inswance shall be chosen by Borower subject to approval by tender, provided.
<br />that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form
<br />acceptable [o [.ender and shall include a standazd mortgagi clause in favor of and in a form acceptable to Gender.
<br />Lender shalt have the right to hold tin policies and renewals thereof, subject to the terms of arty mortgage, deed of trust
<br />or other security agreement with a lien which has priority over this Deed of T: use.
<br />In the went of Ioss. Borrower shall give prompt notice to the insurance carrier and Linder. Linder may make pttn„
<br />of loss if trot made promptly by Borrower.
<br />If the P r^r.e..~ is abanrlct rd by Borrewtr. ar if Ba.^. Vwtr fails to respond to Linder within 30 days from the daft
<br />notice is mailed by Lender to Borrower that the inswance carrier offers to settle a claim for insurance benefits. Lender is
<br />authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
<br />Property or to the scans sectrred by this Deed of Trust.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominia~; Planned Unit Derelopmeats. Bor-
<br />rower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the
<br />Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. It this Deed of Trust is
<br />on a unit in a candomirtium or a planned unit development. Borrower shall perform all o€ Borrower's obligations under
<br />the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and
<br />regulations of the condominium or planned unit development, and constituent documents.
<br />7. Ptotettlon of Condo's Seeadty. If Borrower fails to perform the covenants and agreements contained in this
<br />Deaf of Trust, or if any action or proceeding is commenced which matertialiy affects Cinder's interest in the Property.
<br />then L.endu, at Lender's option, upon notice to Borrower, may make such appearances, disbwse such sums, including
<br />reasonable attorneys' fees, and take such action as is necYSSary to protect Lender's interest. If lender required mortgage
<br />inswance as a eoadition of making the loan secwed by this Deed of Trust, Borcower shall pay the premiums requirai to
<br />maintain such inswance in effect until such time as the requirement for such insurance terminates in accordance with
<br />Borrower's and Condo's written agreement or applicable law.
<br />Any amounts desburscd by Lender gutstrant to this paragraph 7, with interest thereon, at the Note rare, shall
<br />become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to
<br />other terms of payment, such amounts shalt be payable upon notice from Lender to Borrower requesting payment
<br />thereof. Nothing rnntained in this pazagraph "shall require Lender to incur any expense or take ang~ action hereunder.
<br />8. iespeciba. Lender may make or cause to be made reasonable entries upon and inspections of the Property.
<br />provided that Lander shall give Borrower notice prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />4. Camiemwtion. The proceeds of any award or claim for damages. direct or consequential, in connection with
<br />any condemnation of other taking of the Property, ar part thereof. or for conveyance in lieu of condemnation, are
<br />hereby assigtred and shall be paid to Linder, subject to the terms of any mortgage, deed of trust or other security agrce-
<br />ment with a lien which hss priority over this Deed of Trust.
<br />1Q. Boeaovru N~ Released; Forbearance By I.eadec Not a Waivu. Extension of the time for payment or
<br />modificatipt of amortization of t}re sums secured by this Deed of Trust granted by Louder to any successor in interest of
<br />Botrotver shall oot operate to release, in any manner, the liability of chi original $orcower and Borrower's successors. is
<br />interest. Lzrtder shall trot be required to commence proceedings against such successor or refuse to extend time for pay-
<br />ment or otherwise modify amortization of the sums secured by this Decd of Trust by reason of any demand made by the
<br />original Borrower and Borrower's successors in interest. Any forbearance by Linder in exercising any right or remedy
<br />htreurtdtr. or otherwise affardai by applicable law, shall not be a waiver of or preclude the exercise of any such right or
<br />remedy.
<br />1L. Snots sad Asslgpes Bomtd; 3otot sad Several Liablllty; CasLQneo. The covenants and agreements
<br />herein catttaitied s6a11 bind, and the right;, htreundtr shall inure to, the respective successors and assigns oFiittder and
<br />Borrower, snbjest to the provisions of paragraph Ib hereof. All covenants and agreements of B;rrower shall be joint and
<br />scvual. Arty Borrower who co-xiyns this Died of Trust, but does nett execute the Notc, la} is cu-signing this Deed cf Trust
<br />only to grant and convey that Borcowzr's interest in the Property to Trustee under the t•_rms of this Ih~ed .+!"frost. tb i.
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