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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 (including Lender if Lender is such an institution). Lender shall apply
<br />the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender Wray not charge for so holdi:tg
<br />and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender
<br />r„ pays Borrower interest on the Funds and applicable taw 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 he paid to Bortower,
<br />Ca 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 earnings on the Funds. Lender shall give to Borrower, without charge, an annual
<br />O 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 for the sums secured by this Deed of Trust.
<br />f If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />r..,! [he 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 [hey fall due, such excess shall be, at Borrower'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 [o pay taxes, assessments, insurance premiums and ground rents as they fall
<br />due. Borrower shall pay m 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 />[.ender, 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 [he 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 I and 2 hereot'shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borower under paragraph 2 hereof, then [o interest payable on the Note, and then to the principal of [he Note.
<br />4. Prior Mortgages and Deeds of Trash, Charges; Liens. 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 />including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes,
<br />assessments and other charges, fines and impositions attributable to [he Property which may attain a priori[}• over [his
<br />Deed of Trust, and leasehold payments or ground rents, if any.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on [he 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 [o approval by Lender; provided,
<br />[hat such approval shall not be unreasonably withheld. All insurance policies and renew•aIs 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 ro Lender.
<br />Lender shall have [he right to herd the policies and renewals thereof, subject [o the terms of any mortgage, deed of trust
<br />or other security agreement with a lien which has priorit}• 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 no[ made promptly by Borrower.
<br />If the Property is abandoned by Burrower, or it' 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 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 sums secured by this Deed of Trust.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condomin[ums; Planeed Unit Developments. Boo-
<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. if this Deed of Trust is
<br />on a unit in a condominium or a planned unit development. Borrower shall perform all of Borrower's vbligations under
<br />the declaration or covenants creating or governing the condominium yr ptannetl unit development, the bylaws and
<br />regulations of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's security. 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 />[hen Lender, at Lender s option, upon notice to Harrower, may make such appearances, disburse such sums, including
<br />reasonable attorneys' Fees, and take such action as is necessar}• 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 ns [he requirement for such insurance terminates in accordance with
<br />Borrower's and Lender's written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at [he Note rate, Shull
<br />become additional indebtedness oC Borrower secured by this Deed of 'Trust. Unless Borrower and Lender agree to
<br />other terms of payment, such amounts shall be payable upon notice from Lender «t Borrower requesting payment
<br />[herevf. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder.
<br />B. Impection. Lender may make or cause to he made reasonable entries upvn and inspections of the Property.
<br />provided that Lender shall give Borrower native prior to any such inspection specifying reasonable cause therefor
<br />related to Lender's interest in the Property.
<br />9. Condemnation. The praeeds of any award or claim for damages, direct or consequential, in connection with
<br />any condemnation ar other takingvf the Property, or part thereof ar far conveyance in lieu of condemnation, are
<br />hereby assigned and shall be paid to Lender, subject to the ternts of any nwrtgage, deed of trust or other security agree-
<br />ment with a Tien which has priority over this Deed oi'Trust.
<br />t6. Borrower Not Released; Fotbearaoce 9y !.ender Not a Waiver. Extension of rho time tar payment ar
<br />modification of amortization of the sums secured by this Deed 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 shall not be requited to commence proceedings against such suceessor ix refuse ht extend time Ibr ptty
<br />men[ or otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the
<br />original Borrower and Bortower's successors in interest Any forbearance by Lender in exercising any tight or remedy
<br />hereunder. or otherwise nfforded by applicable law, shall not he a waiver of or preclude the exercise of any such right or
<br />remedy.
<br />11. Succasars and Awlgm Bound; Joint and Several Liahility; Co-signers. '.Chc covenants and agrecntcnts
<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 ib hereof. Alt covenants and agreements of 6arnxcer shall bc,joint and
<br />several. Any Borrower who cu-signs this Decd of'frust but fires not execute the Note, lul is co•signine thin [ked of Trust
<br />onl}• to grant and convey that Borrower's interest In the Prolxrty m'fnistec under the rernts of this Ihcd of !'rust. tbt is
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