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200206520 (page 2 of 5)
<br />TOOE'I1IER with all the improvements now or hereafter erected on the property, and all easements, rights,
<br />appurtenances and rents (subject to the rights and authorities givto Lender to collect and apply such rents) all of which
<br />shall be deemed to be and remain a part of the property covered this Deed of Trust; and all of the foregoing is referred
<br />to in this Security Instrument as the "Property."
<br />Borrower Covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and
<br />convey the Property, and that the Property is unencumbered, except for encumbrances of record. Borrower covenants
<br />and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of
<br />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, including any variations resulting from changes in the contract rate, and late charges
<br />as provided in the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum (herein "Funds ")
<br />equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development
<br />assessments which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus
<br />one-twelfth of the yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments
<br />for mortgage insurance, if any, all as reasonably esinitially and from time to time by Lender on the basis of assessments
<br />and bills and reasonable estimates thereof. Borrow shall not be obligated to make such payments of Funds to Lender to
<br />the extent that Borrower makes such payments to of a prior mortgage or Deed of Trust if such holder is an institutional
<br />lender.
<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 bender is such an institution). Lender shall apply
<br />the Funds to pay said taxes, assessments, insurance premium and ground rents. Lender may not charge for 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
<br />agree in writing that interest be paid on the Funds. Unless an agreement is made or applicable law requires interest to be
<br />paid, lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower,
<br />without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which
<br />each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Deed of
<br />Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said
<br />taxes, assessments, insurancepremiums 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 premuims and ground rents as they
<br />fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as
<br />Lender 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 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 the
<br />Note and paragraphs 1 and 2 hereof shall be applied by bender first in payment of amounts payable to Lender by
<br />Borrower under paragraph 2 hereof, then to interest payable on the Note at the applicable contract rate, and then to the
<br />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 />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. IIazard 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 "extended coverage," and such other hazards as Lender
<br />may 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
<br />trust or other security agreement with a lien which has priority over this Deed of Trust.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and bender. 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
<br />Property or to the sums secured by this Deed of Trust.
<br />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
<br />payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums
<br />secured by this Security Instrument immediately prior to the acquisition.
<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
<br />the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of
<br />Trust is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's
<br />obligations under the declaration or covenants creating or governing the condominium or planned unit development,
<br />the by-laws and regulations of the condominium or planned unit development, and constituent documents.
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