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If Borrower 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 (includlrrg Lender if Lender is such an institution). Lender shall apply
<br />the Furds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />~ and applying the Funds, analyzing said acrnunt or verifying and compiling said assessments and bills, unless Lender
<br />~ pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender
<br />~ may agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower,
<br />~. and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required
<br />~ to pay Borrower any interest or eaznings on the Funds. Lender shall give to Borrower, without charge, an annual
<br />accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was
<br />~ made. The Funds are pledged as additional security far the sums secured by this Deed of Trust.
<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 to pay said
<br />taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borcower's option,
<br />either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the
<br />Funds held 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 or more payments as Lender
<br />may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by
<br />Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any
<br />Funds held by Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />the Note and paragraphs 1 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 on the Note. and then to the principal of the Note.
<br />4. Prior Mortgages and Deems of Trot; Charges; Liens. Borrower shall perform all of Borrower's obligations
<br />under any mortgage, deed of trust or other security agreement with a licn which has priority over this Deed of Trust.
<br />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid alt taxes,
<br />assessments and other chazges, fines and impositions attributable to the Property which may attain a priority ovee this
<br />Deed of Trust, and leasehold payments or ground rents, if any.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafrer 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 in such amounts and for such periods as Lender may require.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided.
<br />that such approval shall not be tmreasonably withheld. All insurance policies and renewals thereof shall be in a form
<br />acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Jxnder.
<br />Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage. deed of crust
<br />or other security agreement with a lien which has priority over this Deed of Trust.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not made promptly by Borrower.
<br />tf the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date
<br />notice is mailed by Lender to borrower that the insurance carrier offers to settle a claim for insterance benefits. Lender ..
<br />authorized to rnliect and apply the insurance proceeds at Lender's option either to restoration or repair of the
<br />Property or to the sums secured by this Deed of Trust.
<br />6. Presenatbn sad Maintenance of Property; Leaseholds; Condominlams; Plaarrcd Unit Developments. Bor-
<br />rower shall keep the Property in good repair and shall not rnmmit was[e or permit impairment ar deterioration of the
<br />Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is
<br />on a unit in a condominium or a planned unit development. Borrower shalt perform all of 8orcower's obligations under
<br />the declaration or wvenants creating or governing the condominium or planned unit development, the by-laws and
<br />regulations of the rnndominium or planned unit development, and constituent documents.
<br />7. Protectrloa of bender's Secnriq. if Borrower fails to perform the covenants and agreements contained in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />then Lender, ak Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including
<br />reasonable attorneys' fees, and take such action as is necessazy to protect Lender's interest. If Lender required mortgage
<br />insurance as a condition of making the loan secured by this Deed of Trust. Borrower shall pay the premiums required to
<br />maintain such insurance in effect until such time as the reyuirement for such insurance terminates in accordance with
<br />Borrower's and L.ender's written agreement or applicable law.
<br />Any amounts disbursed by Leader pursuant to this paragraph ', with interest thereon, at the No[e rate, shall
<br />become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borcower and Lender agree to
<br />other terms of payment, such amounts shall be payable upon notice from Leader to Borrower requesting payment
<br />thereof. Nothing contained in this pazagraph 'shall require Lender to incur any expense or take any action hereunder.
<br />8. Lsspeetion. Lender may make or cause to be made reasonable entries upon and inspections of the Property.
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />9. CasdemoaHoo. The proceeds of any awazd or claim for damages, direct or consequential, in connection with
<br />any condemnation or othee taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are
<br />hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agree-
<br />men[ with a lien which has priority over this Deed of Trust.
<br />lfl. Borrowu Not Reloosed; Forbearance By Leader Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this 1?eed of Trust granted by Lender to any successor in interest of
<br />Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in
<br />interest. Lender shat! not be required to commence proceedings against such successor or refuse to extend time for pay-
<br />ment ar otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the
<br />origins! Boaawer and Borrower's successors in interest. Any forbearance by bender in exercising any right or remedy
<br />hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of xny such right or
<br />remedy.
<br />II. Soceesson and Awlgas 13otmd; Joint and Several Liability; Co•s(gaers. 1-he covenants and agreements
<br />herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and
<br />Borrower. subject to the provisions of paragraph Ili hereof. All covenants and agreements of Borrower shall b+: }Dint and
<br />several. Any Borrower who co-signs this Deed of Trust. but does no[ execute the Note. la) is co signing this lleed of "Trust
<br />only to giant and convey that Borrower's interest in the Property ut `trustee under the *.crnts of this Decd ot'1'rust, tb) is
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