|
200202948 (Page 2of5)
<br />TOGETHER with all the improvement, nor: or hereafter erected on the property, and all easements, rights,
<br />appurtenances and rents (subject however to the rights and authorities given herein to Lender to.pollect and apply such
<br />rents), all of which shall be deemed to be and remain a part of the property covered by this Deed of Trust; and all of the
<br />foregoing, together with said property (( 1 ' the leasehold estate if this Deed of Trust is on a leasehold) are hereinafter
<br />referred to as the "Property."
<br />Borrower covenants that Borrower is Iawiully seised 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. Borrower covenants that
<br />Borrower warrants and will defa: d generally the title to the Property against all claims and demands, subject to
<br />encumbrances of record.
<br />UNIFORM COVENANTS. Borrower and ienm;r covenant into agree as follows:
<br />1. Payment of Principal and Interest. Burrower shall promptly pay when due the principal and interest
<br />indebtedness evidenced by the Note, including any variations resulting from changes in the contract rate, and other
<br />charges as provided in the Nate.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds ") equal to one twelfth of the yearly taxes and assessments (including condominium and planned
<br />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 the yearly premium installments for hazard insurance, plus one - twelfth of yearly
<br />premium installments for mur.gage insurance, if any, all as reasonably estimated initially and from time to time by
<br />Lender on the basis of assc_smenti and bills sne reasonable estimates tnorevf. Borrower shall not be obligated to make
<br />such payments of Funds ul Lcutler to the lance! .;:at iorrower makes such payments to the holder of a prior mortgage
<br />or deed of trust if such holder is a,,, ilstitutional Inndcr.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
<br />insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply
<br />the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding
<br />and 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 pormits Lender to make such a charge. Borrower and Lender may
<br />agree in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower, and
<br />unless such agreement is made or applicable law requires such interest to be paid, fender shall not be required to pay
<br />Borrower any interest or earnings on the Ivnds. Lender shall give to Borrower, without charge, an annual accounting of
<br />the Funds showing credits and debits to [flu Funds and the purpose for which each debit to the Funds was made. 'the
<br />Funds are pledged as additional se 'urtty for the noes secured by this Decd of Trust.
<br />If the amount of the Funds held by Lender, together with the fnterC monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shrill exceed the amount required to pay said
<br />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 />may require.
<br />Upon payment in full of all sums scoured by this Deed of 'Trust, Lender shall promptly refund to Borrower any funds
<br />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 bender, any Funds
<br />held by Lender at the time of appC:aadutl as a cred.l against the sums scoured by This Deed of Trust.
<br />3. Application of Payments. Unless appliwulu law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
<br />Borrower under paragraph 2 llereo:, then to interest payable on the Note at the applicable contract rate, and then to the
<br />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 secumy 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,
<br />assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this
<br />Deed of Trust, 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 indl'.ed within the term "extended coverage," and such other hazards as Lender
<br />may require and in such amounts :wd for suci ;,e'icls as Lender may require.
<br />'The insurance carrier providing the insurance shall be chosen by the Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a
<br />form 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 Deed of Trust.
<br />In the event of loss, Burrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Properly damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration ur repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the Sums secrrc:d by .hr :mcurl y Lnotrt tae u, )Octh r or not then due, wife any excess paid to Borrower. If
<br />Borrower abandons the Property, ur 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
<br />feature the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30 -day period will
<br />begin when . the notice is givc't1.
<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 Burrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the
<br />Property or to the sums secured by this Deed of Trust.
<br />01 -01 -00 DOT NE007942
<br />IIIIIIII Ill 1111111111 TO III, VIII Ell 11111111111 III �1111111IINII X11111 H 11111IIIh 111111111111 IN IIII INII IINI dill 11 VIII 111111111111111
<br />- R219A459CK5700T9000NE00 19420' *RFFO OR I G I SAL
<br />
|