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COVENANTS 200306423
<br />1. Payments. Borrower agrees m make all payments on the secured debt when due. Unless Borrower and lender silver otherwise, any payments Lender receives from
<br />Borrower or far Borrower's benefit will be applied first m any amounts Borrower owes on the secured debt exclusive of irmrest or principal, second m interest, and ten m
<br />principal. Ifpartial prepayment ofthe secured debt occurs for any reason, it will net reduce or excuse any scheduled payment until the secured debt is paid in full.
<br />2. Claims Against Title. Borrower will pay all taxes, asmssmcnG, and other charges estimates in the property when due and will defend tide m the property against
<br />any claims which would impair the lien of this dad of coo. Under may require Borrower in assign any rights, claims or defenses which Borrower may have against
<br />Wes who supply labor or materials m improve or maintain to property.
<br />3. Insurance. Borrower will beep me property insaed under terms awepable to Lender as Borrower's expense and for Under's benefit. All Ireumnce policies shall
<br />Include a standard mortgage clause in favor ofUnder. Leader will be named as loss payer or as the insured on any such i sured policy. Any insurance proceeds may be
<br />applied, within Lender's discrefice, in either the reatoodiom or repair of the damaged property or m the secured debt If Under requires mortgage insumna, Borrower
<br />spring m maintain such insurance for as Inng as Under requires.
<br />4. Property. Bemnver will keep the property in good condition and make all repairs reasonably necessary.
<br />S. Expenses. Borrower agrees in pay all Under's expenses, including reasonable a0omeys' fees, if Borrower breaks any .,met In this deed of must or in any
<br />obligation secured by this dadoftmst. Ronnwerwillpeythamemountsm Undermprovidedin Covenwt9nfdisdadofmst.
<br />6. Prior Security Interests. Unless Borrower first obegins Under's written contest, Borrower will not make or permit any changes many prior security interests.
<br />Borrower will perform WI of Borrower's obligations under any prior mortgage, dad of urger Oder security agreement, including Borrower's covenants In make puymcns
<br />when due.
<br />7. Assignment of Rents and Profits. Borrower assigns to Under tie rents and profits of the property. Unless Borrower end Under have agreed otherwise in writing,
<br />Borrower may collect and retain the rents as long as Borrower is amt t default. If Borrower defaults, Under, Under's agent, or a court appointed receiver may coke
<br />possession and manage the property and wiled the rents. Any rents Lender collects shall be applied first to den costs of mam,I, the property, including cote cuss and
<br />attomeyi fees, commissions in creel agars, and any other necessary related expenses. Do remaining amount of rens wJl then apply m payments on the secured debt w
<br />provided in Cnvenxm I.
<br />8. Unstable Condominiums; Planned Unit Developmanb. Borrower agrees to comply with thc provisions of any lease Bthis dead of tme is on leasehold. If this
<br />deed of tae is on a unit in a condominium or a plumed unit development, Removed- will perfrm all of Borrower's duties under the wvemaug, by laws, or mgulaWm of
<br />fine condominium or planned unit development.
<br />9. Authenty of Lender to Perform for Borrower. If Borrower falls to Pattern, any of Borrower's duties under this dead of trust. Under may perform the duties or
<br />cause deco to be perfumed. fender may sign Borrower's name m pay any amount if necessary for performand. If my wms dion on the pmperly is diswntinued or wt
<br />carried on in a reasonable manner, Lender may do whatever is necessary in peokct Used's among, interest in the preterit. This may Include completing de construction.
<br />Under's failure to Perform will not preclude fender from axemising any of its Oder righs under the law or this deed afore.
<br />Airy amounts paid by Under in protect Lender's security hormst will be secured by this dad attract. Such amounts will be due on demand and will bear interest boosting
<br />dam ofte payment anti) paid in full al the interest me in effect on the secured debt.
<br />10. Default and Aeeelention. If Borrower fails to make any payment when due or breaks any wvenmts under this deed ginned or tiny obligation secured by this dad of
<br />cost or any prior mortgage or deed of=t Lender may accelerant the maturity oft wwrcd debt and demand immediae payment end may invoke the power of sale and
<br />any other remedies perm med by applicable law.
<br />11. Request for Notice of Defgult. It is hereby reguesmd mal wpics ofte notices of default and seek sent en tech person who is a party herem, at the address of etch
<br />such person, as sec form herein.
<br />12. Power of Sale. If de Undtt Invokes the power of sale, me Trmme shall tarot record in the affa nfde rcgismr of deeds of each county wherein the trust protest or
<br />some part or parcel thereof is simaled a notice of default containing the information required by low. The Trustee shall also mail wpics of the notice of demuh in the
<br />Borrower, m each person who is sporty hens, and to other persons as prescribed by applicable law. Not less Nan one monm otter the Tmstee records de no6ce of default,
<br />or awn months link cost property is not in any incorporated city or village and Is used in fanning operations carried on by the tsusror, the Trustee shall give public notice of
<br />sale m the persons and in the marmer prescribed by applicable law. Testa, wihoa damund ce Borrower, shall sell the property al public ruction to the highest bidder, if
<br />required by the Perm Homesmad Protection Ac4 Trustee shall offer me property t two sepses sales m required by applicable law. Tmsme army postpone sale of all or any
<br />pawl nfine property by public ennornament at the rime rod plea of any previously scheduled sale. Under or its designee may purchase the property W ary sale.
<br />Upon receipt of payment of the price bid, Trustee shall deliver m the purchaser Tmsms's dad werveying the property. The recitials wnmined ul Trustee's deed shall be
<br />prima facie evidienw of the tram of the aaements wnmined therein. Trustee shall apply the proceeds of the sale in the following order; (a) wall expenses ofte sale,
<br />including, but not limited m, reasonable Trusses fees, reasonable moomrys fees and unnatatemwt fees; (b) malt sums secured by this dad ofwst and (c) me balance, if
<br />any, no the persons legally entitled m receive it.
<br />13. Foreclosure. At Lender's option, die dad oftrust may be foreclosed in the manner provided by applicable law fm fnralosute of mortgages on real property.
<br />14. Isepediet. Under may enter to property to aspect it if Under gives Borrower notice beforehand The mace must arum to ma nahle cause for Undei s
<br />inspection.
<br />15. Corecers toss. Borrower assigns m Lender den proceeds of any award or claim for damages connected wit a condemne6on or other taking of ell or any Pan ofthe
<br />proatry . Such proceeds will be applied as provided in Covenant 1. This assignment is subject to the terms of sty prior security agrament.
<br />16. Waiver. By exercising any remedy available to Under, Lender does vet give up any rights m later sea any other remedy. By not exercising tiny remedy upon
<br />Borrower's default, Lender does not waive any right to lamr consider the event a defsuft if it bappem again.
<br />17. Joint and Several Llabllity; Co- Agmers; Suaetwrs and Assign Bound. All duties under this dad of must arejoint and several. Any Borrower who w�aigps Nis
<br />dad of must but does not w -sign the underlying debt insiromrns(s) does w only m grant and convey thal Bormwer's intereat in the property an the Trustee under names
<br />of mis dead ofoust. In addition, such a Borrower agrees that me Under and any other Borrower under this dad ofwst may waved, modify or make any other changes to
<br />the arms ofthis dad oftmst or the secured debt without that Borrower's consent and will releasing mat Borrower from the mane ofthis dead orator
<br />The duties and benefits ofmis dead ofwst shall bind and benefit the e.g.m and assigns of Under and Borrower.
<br />18. Notice. Unless otherwise required by law, any notice in Borrower shall be, given by delivering it or by mailing it by mortified mail addressed to Bonowtt W the
<br />property address or any other address the Borrower has given to Lender. Borrower will give tiny rmfia to Lender by certified mail to Under's address on page 1 of this
<br />deed of fist, or to any Omer address, which Lender has Jesigremd. Any other notice m Under shall be scat to Lender's address as mention page 1 ofmis dad oftmst.
<br />Any notice shall be deemed in have been gives m Borrower or Lender when given in the manna stated above.
<br />19. Transfer of the Property or a Beneficial Interest in the Borrower. Bell or any pan ofthe property or eery interest in it is gold or traasfendl without the Under's
<br />prior written consent, Under may demand immediate payment of the secured debt. Under may alw demand immWiam payment ifthe Borrower Is not a namrai p con and
<br />a beneficial merest in de Borrower is sold or omsfened. However, Under may not demaad payment in the above situations if it is prohibited by federal law as of the data
<br />of cols deed oftrust.
<br />30. Recomveyaaee. When the obligation wcmad by mis deed atonal has been paid, and Lender has no further obligation to make advances under the insirumetns or
<br />agreements soured by this dad ofutus, the Truster shall, upon written request by the Under, reconvey the trust property. The Lender shall deliver to the Borrower, or in
<br />Borrower's successor in intaresl, the trust deed and me nom or other evidence ofthe obligation an misfied. Borrower mall pay any recordation ones.
<br />31. Successor Trustee. Lrnder, U Under's option, may remove Toaster and appoint a successor trustee by first, mailing a copy of the substation of Wake as required
<br />by applicable law, and man, by filing the substitution oforstee for record in the off. of the register of dads of each county in which the trust property, or come pan
<br />thereof is situated. The mceeawr taster, without wnvryance ofthe property, shall succeed m all the power, duties, authority and tide ofte Testa named in the deed of
<br />Mgt and of any successor trustee.
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