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99 1U9373 �
<br /> Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant
<br /> and convey the Property,and that the Property is unencumbered,except for encumbrances of record. Borrower covenants
<br /> that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to
<br /> encumbrances of 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
<br /> indebtedness evidenced by the Note and late charges as provided in the Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall
<br /> pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid
<br /> in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and
<br /> planned unit development assessments,if any) which may attain priority over this Deed of Trust, and ground rents on the
<br /> Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium
<br /> installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the
<br /> basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments
<br /> of Funds to Lender to the e�ent that Borrower makes such payments to the holder of a prior mortgage or deed of trust
<br /> 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
<br /> are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall
<br /> apply the Funds to pay said taaces, assessments, insurance premiums and ground rents. Lender may not charge for so
<br /> holding and applying the Funds,analyzing said account or verifying and compiling said assessments and bills,unless Lender
<br /> pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender
<br /> may agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower,
<br /> and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to
<br /> pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower,without charge,an annual accounting
<br /> of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br /> 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
<br /> to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay
<br /> said taxes, assessments, insurance premiums and ground rents as they 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 the amount of the �
<br /> Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall
<br /> due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender
<br /> ;
<br /> may require. �
<br /> Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any �
<br /> Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender,
<br /> Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds
<br /> held by Lender at the time of application as a credit against the sums secured by this Deed of Trust.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br /> Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal cf 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 /> including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes,assessments
<br /> and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust,
<br /> and leasehold payments or ground rents, if any.
<br /> 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, hazards included within the term "eactended coverage," and such other hazards as Lender may
<br /> require and in such amounts and for such periods as Lender may require.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;provided,
<br /> that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form
<br /> acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender.
<br /> Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust
<br /> or other security agreement with a lien which has priority over this Mortgage.
<br /> In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br /> proof of loss if not made promptly by Borrower.
<br /> If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date
<br /> notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> or to the sums secured by this Mortgage.
<br /> 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
<br /> Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the
<br /> Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust
<br /> is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under
<br /> the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and
<br />! regulations of the condominium or planned unit development, and constituent documents.
<br /> 7. Protection of Lender's Security. If Borrower fails to perfarm the covenants ar;d agreements contained in this
<br /> Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br /> tnen Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including
<br /> reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage
<br /> insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required
<br /> to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with
<br /> 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
<br /> become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other
<br /> terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof.
<br /> Nothing contained in this paragraph 7 shall require Lender to incur any e�ense ar take any action hereunder.
<br /> Form 3828 1/80 (Page 2 of 5 Pages)
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