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' KEVIN SCHULTE 9 9 �O y p 0� 102723 07/30/1999
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<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
<br /> iudebtedness evidenced by the Note and late charges as provided iu the Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall pay to
<br /> Leiider on the day monthly payments of principal and iuterest are payable under the Note, until the Note is paid in full, a
<br /> sum (herein "Funds") equal to one-twelftli of the yearly taxes aud assessments (including condominium and planned unit
<br /> development assessments, if any) wl�ich may attain priority over this Deed of Trust, and ground reuts on the Properry, if
<br /> any, plus one-twelfth of yearly premium installments for hazard insurauce, plus oue-twelfth of yearly premium installments
<br /> for mortgage insurauce, if any, all as reasonably estimated initially and from time to time by Lender on the basis of
<br /> assessmevts and hills and reasouable estimates tl�ereof. Borrower shall not be obligated to make such payments of Fuuds
<br /> to Lender to the extei�t that Borrower makes such paymeuts to the holder of a prior mort�age or deed of trust if such holder
<br /> is an institutional leitder.
<br /> If Borrower pays Fuuds to Lender, the Funds shall be held in an institution the deposits or accounts of wliicli are
<br /> insured or guaranteed by a Federal or state agency (iucluding Lender if Leuder is such an institution). Lender sl�all apply
<br /> the Funds to pay said taxes, assessments, insurance premiums and grouud reuts. Lender may not charge for so holding and
<br /> applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays
<br /> Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree
<br /> in writing at the time of execution of this Deed of Trust tl�at interest on tl�e Funds shall he paid to Borrower, aud unless
<br /> such agreement is made or applicable law requires such interest to be paid, Lender shall uot be required to pay Borrower
<br /> any interest or earnings o❑ the Funds. Lender shall give to Borrower, without charge, an annual accouuting of die Funds
<br /> showing credits aud debits to the Funds and tl�e purpose for which each debit to the Funds was made. The Funds are
<br /> pled�ed as additional security for the sums secured by this Deed of Trust.
<br /> If the amount of tl�e Funds held by Lender, together with Che future monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessmeuts, iusurance premiums and ground revts, shall exceed the amount required to pay said
<br /> taxes, assessmeuts, insurance premiums and ground rents as tl�ey 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 tlle amount of the Funds
<br /> held by Lender sl�all not be sufficient to pay taxes, assessinents, insurance premiums and ground rents as they fall due,
<br /> Borrower shall pay to Lender any amount uecessary to make up the deficiency in one or more payments as Lender may
<br /> reyuire.
<br /> Upou payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds
<br /> lield by Lender. If under paragrapli 17 l�ereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> sl�all apply, no later than immediately prior to the sale uf the Property or its acquisition by Leuder, any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br /> 3. Application of Payments. Uiiless applicable law provides otherwise, all payments received by Lender under the
<br /> Note aud paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> under paragraph 2 l�ereof, then to interest payable on the Note, aud tl�en to tl�e principal of the Note.
<br /> 4. Prior Mortgages and Deeds of Trust; 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 /> i��cludin� Borrower's co�-e�iants to n�tke payuients wl�en due. Borrower shall pay or cause to be paici all taxes, assessme►rts
<br /> and otlier cl�arges, fines and impositious attributable to the Property which may attain a priority over this Deed of Trust,
<br /> and leasehold paymeuts or grouiid rents, if any.
<br /> 5. Hazarcl Insurance. Borrower shall keep the improvements now existing or hereafter erected on die Property
<br /> insured against loss by fire, hazards included witl�in the term "exte�ided coverage", and such other hazards as Lender may
<br /> reyuire and in sucli ainounts and for such periods as Lender may require.
<br /> The insurance carrier providing the insurauce shall be chosen by Borrower subject to approval by Lender; provided,
<br /> tl�at such approval shall not be uiu-easonably witl�lield. All insurance policies and renewals thereof shall be in a form
<br /> acceptable to Le�ider and sliall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender
<br /> shall have the right to liald die policies and renewals thereof, subject to the teruis of any mortgage, deed of trust or other
<br /> security agreeinent witl� a lien which lias priority over this Deed of Trust.
<br /> In the eveut of loss, Borrower sliall give prompt notice to the insurauce carrier and Lender. Lender may make proof
<br /> of loss if not made protnptly by Borrower.
<br /> If the Property is abandoned by Borrower, or if Bormwer fails to respond to Leuder witl�in 30 days from the date
<br /> uotice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benetits, Lender is
<br /> autl�orized to collect aud apply the insurauce proceeds at Lender's option either to restoration or repair of the Property or
<br /> to the sums secured by this Deed of Trust.
<br /> 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
<br /> Borrower shall keep the Property iu �ood repair and shall not commit waste or permit impairment ar deterioration of the
<br /> Property and sl�all comply with the provisions of airy lease if this Deed of Trust is on a leasehold. If this Deed of Trust is
<br /> ou a unit in a condomiuium or a plamied unit development, Bormwer shall perform all of Borrower's obligations under the
<br /> declaration or covenants creating or governing the coudominium or planned unit development, the by-laws and regulations
<br /> of tl�e condominium or plamieu unit development, and constitueut documeuts.
<br /> 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreeuients coutained in this
<br /> Deed of Trust, or if auy action or proceeding is comi7�enced which materially affects Lender's interest in the Property, tl�en
<br /> Lender, at Lender's uption, upon notice tq Borrower, may make sucl� appearances, disburse such sums, including
<br /> reasonable attorueys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage
<br /> insuravice as a condition of ttiaking the loan secured by this Deed of Trust, Borrower shall pay the premiums required to
<br /> maintain such iusurauce in effect until such time as tl�e requirement for such insurance terminates in accordance with
<br /> Borrower's a�id Lender's written agreement or applicable law.
<br /> Aiiy amouuts dishursed by Lender pursuaut to this paragraph 7, with interest thereon, at the Note rate, shall beco�ne
<br /> additional indebtedness of Borrower secured by this Deed of Trust. Utiless Borrower and Leuder agree to other terms of
<br /> paymeut, sucl� a�nounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing
<br /> contained in tl�is paragrapl�7 shall require Lender to incur any expense or take any actiou hereutider.
<br /> 8. Inspection. Leuder may make or cause to be made reasonable entries upon and inspections of the Property,
<br /> pravided tl�at Leuder sl�all give Borrower itotice prior to any such inspection specifying reasouable cause therefor related to
<br /> Lender's interest in tl�e Property.
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