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<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
<br /> the 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
<br /> the Property, and that the Property is unencumbered, except for encumbrances of record. Borrower covenants that
<br /> Bonower warrants and will defend generally the title to the Property against all claims and demands, subject to
<br /> encumbrances of record.
<br /> iJ1VIFORM 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
<br /> according to its terms, which aze incorporated herein by reference.
<br /> 2. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and paragraph 1 hereof shall be applied by Lender first to interest due on the Note, second to the principal due
<br /> on the Note, and then to late chazges due on the Note.
<br /> 3. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Bonower'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 Bonower'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 the Property which may attain a priority over this
<br /> Deed of Trust, and leasehold payments or ground rents, if any.
<br /> 4. Hazard Insurance. a) Borrower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, hazazds included within the term "extended coverage", and any other hazards, including
<br /> floods or flood, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the
<br /> periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Bonower subject to
<br /> Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above,
<br /> Lender may, at Lender's option,obtain coverage to protect Lender's rights in the Property in accordance with pazagraph
<br /> 6.
<br /> b) All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires, Bonower shall promptly give to
<br /> Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt to the
<br /> insurance carrier and Lender. 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
<br /> of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If
<br /> the restoration or repair is not economically feasible or Lender's security would be lessened,the insurance proceeds shall
<br /> be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower.
<br /> If Borrower abandons the Property or does not answer within 30 days a notice from Lender that the insurance carrier
<br /> has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair
<br /> or restore the Property or to pay sums secured by this Security Instrument,whether or not then due. The 30-day period
<br /> will begin when the notice is given.
<br /> d) Except as provided in subpazagraph 4(e) below, should partial or complete destruction or damage occur to the
<br /> Property, Bonower hereby agrees that any and all instruments evidencing insurance proceeds received by Lender as a
<br /> result of said damage or destruction, shall be placed in a non-interest bearing escrow account with Lender. At Lender's
<br /> discretion, Lender may release some or all of the proceeds from escrow after Borrower presents Lender with a
<br /> receipt(s), invoice(s), written estimates(s) or other document(s)acceptable to Lender which relates to the repair and/or
<br /> improvements of the Property necessary as a result of said damage and/or destruction. Absent an agreement to the
<br /> contrary, Lender shall not be required to pay Borrower any interest on the proceeds held in the escrow account. Any
<br /> amounts remaining in the account after all repairs and/or improvements have been made to the Lender's satisfaction,
<br /> shall be applied to the sums secured by this Deed of Trust, Deed to Secure Debt,or Mortgage. Borrower further agrees
<br /> to cooperate with Lender by endorsing all, checks, drafts and/or other instruments evidencing insurance proceeds; and
<br /> any necessary documents. Should Bonower fail to provide any required endorsement and/or execution within thirty(30)
<br /> days after Lender sends bonower notice that Lender has received an instrument evidencing insurance proceeds, or
<br /> document(s) requiring Borrower's signature, Borrower hereby authorizes Lender to endorse said instrument and/or
<br /> document(s)on Borrowers benalf, and collect and apply said proceeds at Lender's option,either to restoration or repair
<br /> of the Property or to sums secured by this Deed of Trust, Deed to Secure Debt, or Mortgage. It is not the intention
<br /> of either party that this escrow provision, and/or Lender's endorsement or execution of an instrument(s) and/or
<br /> document(s) on behalf of Borrower create a fiduciary or agency relationship between Lender and Bonower.
<br /> e) Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly payments refened to in pazagraphs 1 and 2 or change the amount of the
<br /> payments. If under paragraph 16 the Property is acquired by Lender, Borrower's right to any insurance policies and
<br /> proceeds resulting from damage to the property prior to the acquisition shall pass to Lender to the extent of the sums
<br /> secured by this Security Instrument.
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