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� � 99•s�s32s
<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
<br /> the Property, and that the Property is unencumbered, except for encumbrances of record. Bonower covenants that
<br /> Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to
<br /> encumbrances of record.
<br /> I
<br /> UNIFORM 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
<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
<br /> option,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
<br /> receipts of paid premiums and renewal notices. In the event of loss,Bonower shall give prompt to the insurance carrier and
<br /> Lender. Lender may make proof of loss if not made promptly to Bonower.
<br /> c) Unless Lender and Borrower othetwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the 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
<br /> when 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,
<br /> Lender may release some or all of the proceeds from escrow after Borrower presents Lender with a receipt(s), invoice(s),
<br /> written estimates(s) or other document(s) acceptable to Lender which relates to the repair and/or improvements of the
<br /> Property necessary as a result of said damage and/or destruction. Absent an agreement to the contrary, Lender shall not be
<br /> required to pay Borrower any interest on the proceeds held in the escrow account. Any amounts remaining in the account
<br /> after all repairs and/or improvements have been made to the Lender's satisfaction, shall be applied to the sums secured by
<br /> this Deed of Trust, Deed to Secure Debt,or Mortgage. Bonower further agrees to cooperate with Lender by endorsing all,
<br /> checks,drafts and/or other instruments evidencing insurance proceeds;and any necessary documents. Should Borrower fail
<br /> to provide any required endorsement and/or execution within thirty (30) days after Lender sends borrower notice that
<br /> Lender has received an instrument evidencing insurance proceeds,or document(s)requiring Borrower's signature,Bonower
<br /> hereby authorizes Lender to endarse said instrument and/or document(s) on Borrowers behalf, and collect and apply said
<br /> proceeds at Lender's option,either to restoration or repair of the Properiy or to sums secured by this Deed of Trust,Deed to
<br /> iecure Debt, or Mortgage. It is not the intention of either party that this escrow provision,and/or Lender's endorsement or
<br /> execution of an instrument(s)and/or document(s)on behalf of Borrower create a fiduciary or agency relationship between
<br /> Lender and 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 pazagraph 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 (OI/97)NE FR/ARM/PEL Deed
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