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Ut+tr+oant''CoVeNetv'rs. Harrower and LPtrder covenant and ag{a as toltows: ~ ~ "'""' 1 j ~j v ~ 1
<br />1. I s~sstsat of Prisdpd arid laaerest. Borrower Shall promptly pay 'when dtre the principal of and interest on the
<br />ittdebtedneas evidenced by the Note, prepayment and late charges as provrded in the No[e, and the principal of and interat
<br />on an Future Advances secured by this Deed of Trust.
<br />Paella isr Tanat ttari lasasastee. Subject to applicable law or to s written waiver by Leader, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Notc 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 Ttvst, and ground rents on the Property, if any, pins airs-twelfth of yearly premium installments for hazard insurance.
<br />plus Otte-twelfth of yearly premium installments-for mortgage insurance, if any, all as reascmably estimated initially and from
<br />tune to tune by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federel or
<br />state agerecy (including [.ender if Lender is such an institution). Lender shall apply the Funds to pay said razes, assessments.
<br />inuurance premiums and ground rent Lender may not charge for so holding and applying the Frtnds, analysing card account
<br />or verifying and compiling said assessments and bills, unless Lender pays Sarrower mtcrest on the Funds and apphcahlc law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Dad of Trust that interest on the Funds shall be paid to Barrov~er, and unless such agreement is made ar 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 dchhs to the Funds and the
<br />purpose for which each debit to the Funds was made. Tate Funds arc pledged as additional security for the sums seared
<br />y this Deed of Trust.
<br />[f the amount of the Funds held by Lender, together with the future momhly installments of Funds payable prior ro
<br />the due dates of taxes, asussments, insurance premiums and ground rents, shall exceed the amount required to pay -aid taxes.
<br />assessments, irtsuranee premiums and ground rents as they tall due, such excess shall be, at Borrowers n ton, either
<br />Promptly repaid to Harrower or credited to Borrower on monthly installments of Funds. If the amount of tFte Funds
<br />held 6y 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 to make up the deficiency within 30 days from the date notice rs mailed
<br />by Lander 4o Borrower requesting payment thereof.
<br />t!pon payment in full of all sums secured 6y this Dead of Trash Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragrajh 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than imtttr;dtately prier to the sale of the Property or its acquisition by Lender, any Fonds held by
<br />Lender at the time of application as a credo against the sums secured by this Deed of Trust.
<br />3. Ap~lkatlon o[ Payment. Unless applicable law provides otherwrse, all payments received by Lender under the
<br />Note and paragrapphs I and 2 hereof shall be applied by Lender firs) 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 Nae, and then to interest and
<br />priest on any Future Advance.
<br />~C6r6tx Liem. Borrower shall pay all taxes, assessments and other charges, fines and impositions aurihuta6le 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 />matttter provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly
<br />to the payee hereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the
<br />event rrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments:
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided, that Borrower shall nut be
<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 shall in goat faith contest such hen by, or defend enforcement of such lien in.
<br />legs! pprocadings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
<br />S. Nasri Isratttree. Borrower shall kttp the improvements now existing or hereafter erected on the Property insured
<br />against loss by Rrc, beards included within the term "extended coverage'", and such other hazards as bender may require
<br />and in such amounts and for such periods as Lender may require: provided, that Lender shall oat require that the amount of
<br />such coverage excad that atrrounl of coverage required to pay the sums secured 6y this Deed of Trust.
<br />The inuurance carrier providing the insuranec shalt be chosen by Borrower subject to approval by Lender. pmvideJ.
<br />that sash approval shall not be unreasonably withheld. All premiums on insurance policies shall he paid in the manner
<br />provided under paragnp6 2 hereof or, if not paid in such manner, by Borrower making paymonl, when due, directly to the
<br />irottraatx curia.
<br />All ittaurarta policies and renewals thereat shall 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 w hold the policies :end renewals thcrrnf.
<br />attd Horrowa shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of last.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Ices it nut made promptly
<br />by Hotrower.
<br />Unless Lander and Borrower otherwise agra in writing, insurance proceeds shall he applied to restoration nr repair of
<br />the Property damaged, provided srxh restoration or repair is economically Ieusible :end the security of this Decd of Trust is
<br />rWt thereby impaired. if such ratoration or repair is na economically feasr6le ur if the security of this feed of Trust would
<br />be impaired, the insurarree proceeds shall be applied to the sums secured by this Decd of 'trust, with the izcess, if any, paid
<br />lo. Borrower. 1t the Property rs abartdotted by Borrower, or if Borrower trite to respond «r Lender within 30 days tram the
<br />date notice is rrutikti by Lender to Borrower tha4 !hc insurance terrier afters to settle a alarm tar tnsutan4e I~nefits, Lander
<br />is authorized to calker and apply the insurance proceeds at 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 m writing, soy such application uC proceeds to prnicipal shall nut extend
<br />or postpone the due data of the monthly installments referred io in paragraphs I and 2 hereof ar change the amount of
<br />sash mstallrttents. If under paragraph IS hereof the Property is acyuired by Leader, all right, title and interest ui Borrower
<br />in and to any insurance policies and in and in the proceeds thereof resulting from damage to the pru{xrty prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Deed of 'Crust immediately prior to such sale ar
<br />aegYltillOa.
<br />6. Presarvatfoa sled tAlalatewaace of Psgresty; LeasetwMk; Condominiums; Planned Unit Developments. Ban+wcr
<br />shall keep the Properly in gaud repast and .hall nut comma caste ur permit impairment ur deterioration o1' the Properly
<br />rttd shall comply with the provisions of any lease if this Deed of Trust is un a leasehold. If this Deed of Trust is on a unit in a
<br />condominium or u planned unit development, Borrower shall pcrlorm all tit Borrower's obligations under the declaration
<br />ur covenants creating or governing the cnndomimun. ur planned unu development, the by-laws and regulations of the
<br />cardomiaium or planned unit development, acrd constnuem documents. If a amdnminiunr or planned unit development
<br />rim: is executed by Borrower and recorded together with this Deed of Trust, the covenants and agrcemenls of such rider
<br />slwll be incorporated iron and shalt amend and supplement the covenants and agrccntenu of this Deed of 'trust ns tf the rider
<br />stare a putt heraaf.
<br />?. Ikogetioa of Leader's 5ecudty. If Borrower fads to perform the coverants and agreentcnts contained in this
<br />Geed of Trost, or iE any action or proceeding is commenced which materially affects Lenders interest is the Properly,
<br />iosltrdittg, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or prucecdings involving a
<br />battkrtapt or decadent, then Candor at Lender's option, upon notice to Borrower, may make such appearances, dishunc such
<br />sums and take sash action as is necessary to rotect Lender interact, including but not limited to, dishurscntcm of
<br />teaweable attorney's fees and entry upon the Property ar make repairs, [f Lender required mortgage in>urtncr' as .s
<br />eot~ition of tttaking the loan secured by this Dad of Trust, Harrower shall pay the premiums required to meat«un arch
<br />irtsptattse in effect un'i) stub limo as the requirement [or such insurance tcrmmates in accordance with Bnrrowcrti and
<br />Leotbt's written agreement or ap icable law. Borrower shall pay the amount of all mortgage insurmrcc premiums in the
<br />rnaitaer provided under {aaragra 2 hercaf.
<br />Mp amounts disbursed by Lender pursuant to this paragraph 7, w°ith interest thereon, shall t+ccome additional
<br />indabtedrtess of Borrower ucured by this Dad of Trust. Unless Borrower and tender agree to other terms of payment, uich
<br />aittpunts shall be paygbk upon notice from Lender to Burrower requesting payment thereof, and shall toes' interest Rum the
<br />date of disMrnemeat at tbe rate payable from time to time on outstanding principal under the Nee unless payment of interest
<br />at inch rate would 6e contrary to applirabft law, in which event such amounts shall bear mtcrest at the highest rate
<br />pecmiw~bk tinder apptisabk law. Nothing contained in this paragraph 7 shalt require Lender to incur any expense ur take
<br />aey actiwt htreundor.
<br />L ltsnpeetisa. Letttfer may make or cause to be made reasonable enures opera and inspacuons of the Property, pruc rded
<br />that Lender than give Borrower notice prior W any such inspection specifying rcawnable cause therefor related ro Lender'+
<br />imettat in rite Protterty.
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