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4OU0 1656
<br />Any rider ( "Rider ") attached hereto and executed of even date is incorporated herein and the covenant and
<br />agreements of the Rider shall amend and supplement the covenants and agreements of this Deed of Trust, as if the
<br />Rider were a part hereof.
<br />Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the
<br />Property, and that the Property is unencumbered, except for encumbrances of record. Borrower covenants that Borrower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of
<br />record.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness
<br />evidenced by the Note and late charges as provided in the Note. This Deed of Trust secures payment of said Note according
<br />to its terms, which are incorporated herein by reference.
<br />2. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note
<br />and paragraph 1 hereof shall be applied by Lender first to interest due on the Note, second to the principal due on the Note,
<br />and then to late charges due on the Note.
<br />3. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations, under
<br />any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including
<br />Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other
<br />charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold
<br />payments or ground rents, if any.
<br />4. Hazard Insurance. a) Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage ", and any other hazards, including floods or flood,
<br />for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which
<br />shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option,
<br />obtain coverage to protect Lender's rights in the Property in accordance with paragraph 6.
<br />b) All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt to the insurance carrier and Lender.
<br />Lender may make proof of loss if not made promptly to Borrower.
<br />c) Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30 -day period will begin when
<br />the notice is given.
<br />d) Except as provided in subparagraph 4(e) below, should partial or complete destruction or damage occur to the Property,
<br />Borrower hereby agrees that any and all instruments evidencing insurance proceeds received by Lender as a result of said
<br />damage or destruction, shall be placed in a non - interest bearing escrow account with Lender. At Lender's discretion, Lender
<br />may release some or all of the proceeds from escrow after Borrower presents Lender with a receipt(s), invoice(s), written
<br />estimates(s) or other document(s) acceptable to Lender which relates to the repair and/or improvements of the Property
<br />necessary as a result of said damage and/or destruction. Absent an agreement to the contrary, Lender shall not be required to
<br />pay Borrower any interest on the proceeds held in the escrow account. Any amounts remaining in the account after all
<br />repairs and/or improvements have been made to the Lender's satisfaction, shall be applied to the sums secured by this Deed
<br />of Trust, Deed to Secure Debt, or Mortgage. Borrower further agrees to cooperate with Lender by endorsing all, checks,
<br />drafts and/or other instruments evidencing insurance proceeds; and any necessary documents. Should Borrower fail to
<br />provide any required endorsement and/or execution within thirty (30) days after Lender sends borrower notice that Lender
<br />has received an instrument evidencing insurance proceeds, or document(s) requiring Borrower's signature, Borrower hereby
<br />authorizes Lender to endorse said instrument and/or document(s) on Borrowers behalf, and collect and apply said proceeds at
<br />Lender's option, either to restoration or repair of the Property or to sums secured by this Deed of Trust, Deed to Secure Debt,
<br />or Mortgage. It is not the intention of either party that this escrow provision, and/or Lender's endorsement or execution of an
<br />instrument(s) and/or document(s) on behalf of Borrower create a fiduciary or agency relationship between Lender and
<br />Borrower.
<br />e) Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 16 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument.
<br />5. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />230792 (Rev 07) / ' ^ Page 2 (01/97) NE FR/ARM/PEL Deed
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