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` , � �� �O " v �� LOAN #: 6360035015
<br /> Borrower covenants that Borrower is lawfully seised 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.Bonower covenants that Borrower warrants
<br /> and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record.
<br /> ITNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br /> 1.Payment of Principal and Interest.Bonower shall promptly pay when due the principal and interest indebtedness evidenced
<br /> by the Note and late charges as provided in the Note.
<br /> 2.�nds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender,Borrower shall pay to Lender on
<br /> the day monthly payments of principal and interest are payable under the Note,until the Note is paid in full,a sum(herein``Funds")
<br /> equal to one-twelfth of the yearly taxes and assessments(including condominium and planned unit development assessments,if any)
<br /> which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premium
<br /> installments for hazard insurance,plus one-twelfth of yearly premium installments for mortgage insurance,if any,all as reasonably
<br /> estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.Borrower
<br /> shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of
<br /> a prior mortgage or deed of trust if such holder is an institutional lender.
<br /> If Borrower pays Funds to Lender,the Funds shall be held in an institution the deposits or accounts of which are insured or
<br /> guaranteed by a federal or state agency(including Lender if Lender is such an institution).Lender shall apply the Funds to pay said
<br /> taxes,assessments,insurance premiums and ground rents.Lender may not charge for so holding and applying the Funds,analyzing
<br /> said account or verifying and compiling said assessments and bills,unless Lender pays Borrower interest on the Funds and applicable
<br /> law permits Lender to make such a charge.Bonower and Lender may agree in writing at the time of execution of this Deed of Trust
<br /> that interest on the Funds shall be paid to Borrower,and unless such agreement is made or applicable law requires such interest to
<br /> be paid,Lender shall not be required to pay Borrower any interest or earnings on the Funds.Lender shall give to Borrower,without
<br /> charge,an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds
<br /> was made. The Funds are pledged as additional security for 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 the due dates
<br /> of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments,
<br /> insurance premiums and ground rents as they fall due,such excess shall be,at Borrower's option,either promptly repaid to Borrower
<br /> or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay
<br /> taxes,assessments, insurance premiums and ground rents as they fall due,Borrower shall pay to Lender any amount necessary to
<br /> make up the deficiency in one or more payments as Lender may require.
<br /> Upon payment in full of all sums secured by this Deed of Trust,Lender shall promptly refund to Borrower any Funds held by
<br /> Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender,Lender shall apply, no
<br /> later than immediately prior to the sale of the Property or its acquisition by Lender,any Funds held by Lender at the time of application
<br /> as a credit against the sums secured by this Deed of Trust.
<br /> 3.Application of Payments.All payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied
<br /> by Lender first to any charges I owe other than principal and interest,then to interest that is due,and finally to principal that is due.
<br /> 4.Prior Mortgages and Deeds of Trust;Charges;Liena Borrower shall perform all ofBorrower's obligations under any mortgage,
<br /> deed of trust or other security agreement with a lien which has priority over this Deed of Trust,including Borrower's covenants to make
<br /> payments when due.Borrower shall pay or cause to be paid all taxes,assessments and other charges,fines and impositions attributable
<br /> to the Property which may attain a priority over this Dced of Trust,and leasehold payments or ground rents,if any.
<br /> 5.Hazard Insurance.Bonower shall keep the improvements now existing or hereafter erected on the Property insured against
<br /> loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such
<br /> amounts and for such periods as Lender may require.
<br /> The insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender;provided,that such approval
<br /> shall not be unreasonably withheld.All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include
<br /> a standard mortgage clause in favor of and in a form acceptable to Lender.Lender shall have the right to hold the policies and renewals
<br /> thereof,subject to the terms of any mortgage,deed of trust 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 of loss if
<br /> not made promptly by Borrower.
<br /> If the Property is abandoned by Borrower,or if Bonower fails to respond to Lender within 30 days from the date notice is mailed by
<br /> Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits,Lender is authorized to collect and apply the
<br /> insurance proceeds at Lender's option either to restoration or repair of the Properiy or to the sums secured by this Deed of Trust.
<br /> 6.Preservation and Maintenance of Property;Leaseholds;Condominiums;Planned Unit Developments.Borrower shall keep
<br /> the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
<br /> provisionsofanyleaseifthisDeedofTrustisonaleasehold.IfthisDeedofTrustis onaunitinacondominium oraplannedunit development,
<br /> Bonower shall perform all of Borrower's obligaUons under the declaration or covenants creating or governing the condominium or planned
<br /> unit development,the by-laws and 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 Deed of Trust,
<br /> or if any action or proceeding is commenced which materially affects Lender's interest in the Property,then Lender,at Lender's option,
<br /> upon notice to Borrower,may make s�zch appearances,disburse such sums,including reasonable attorneys'fees,and take such action
<br /> as is necessary to protect Lender's interest. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Deed of Trust,Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for
<br /> such insurance terminates in accordance with 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 the Note rate,shall become additional
<br /> indebtedness of Borrower secured by this Deed of Trust.Unless Borrower and Lender agree to other terms of payment,such amounts
<br /> shall be payable upon notice from Lender to Borrower requesting payment thereof.Nothing contained in this paragraph 7 shall require
<br /> Lender to incur any expense or take any action hereunder.
<br /> 8.Inspection.Lender may make or cause to be made reasonable entries upon and inspections ofthe Property,providedthat Lender
<br /> shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest inthe Property.
<br /> 9.Condemnation.The proceeds of any award or claim for damages,direct or consequential,in connection with any condemnation
<br /> or other taking of the Property,or part thereof,or for conveyance in lieu of condemnation,are hereby assigned and shall be paid to Lender,
<br /> subject to the terms of any mortgage,deed of trust or other security agreement with a lien which has priority over this Deed of Trust.
<br /> 10. Borrower Not Released; Forbearance By Lender Not a Waiver.Extension of the time for payment or modification of
<br /> amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest of Borrower shall not operate
<br /> to release,in any manner,the liability of the original Borrower and Borrower's successors in interest.Lender shall not be d ;
<br /> Initialss�
<br /> Form 38281/SO Page 2 of 4 NE30 E
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