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200648119
<br />871.4801
<br />together with said property (or the leasehold estate in the event this Instrument is on a leasehold) are herein referred to as the
<br />"Property".
<br />Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to deed of trust, grant,
<br />convey and assign the Property (and, if this Instrument is on a leasehold, that the ground lease is in full force and effect without
<br />modification except as noted above and without default on the part of either lessor or lessee thereunder), that the Property is
<br />unencumbered, and that Borrower will warrant and defend generally the title tot he Property against all claims and demands, subject
<br />to any easements and restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring Lender's
<br />interest in the Property.
<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 of and interest on the
<br />indebtedness evidenced by the Note, and prepayment and late charges provided in the Note and all other sums secured by this
<br />Instrument.
<br />2. FUNDS FOR TAXES, INSURANCE AND OTHER CHARGES. Subject to applicable law or to a written waiver by Lender,
<br />Borrower shall pay to Lender on the day monthly installments of principal or interest are payable under the Note (or on another day
<br />designated in writing by Lender), until the Note is paid in full, a sum (herein "Funds ") equal to one - twelfth of (a) the yearly water
<br />and sewer rates and taxes and assessments which may be levied on the Property, (b) the yearly ground rents, if any, (c) the yearly
<br />premium installments for fire and other hazard insurance, rent loss insurance and such other insurance covering the Property as
<br />Lender may require pursuant to paragraph 5 hereof, (d) the yearly premium installments for deed of trust insurance, if any, and (e)
<br />if this Instrument is on a leasehold, the yearly fixed rents, if any, under the ground lease, all as reasonably estimated initially and
<br />from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Any waiver by Lender of a
<br />requirement that Borrower pay such Funds may be revoked by Lender, in Lender's sole discretion, at any time upon notice in
<br />writing to Borrower. Lender may require Borrower to pay to Lender, in advance, such other Funds for other taxes, charges,
<br />premiums, assessments and impositions in connection with Borrower or the Property which Lender shall reasonably deem
<br />necessary to protect Lender's interests (herein "Other Impositions "). Unless otherwise provided by applicable law, Lender may
<br />require Funds for Other Impositions to be paid by Borrower in a lump sum or in periodic installments, at Lender's option.
<br />The Funds shall be held in an institution(s) the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said rates, rents, taxes,
<br />assessments, insurance premiums and Other Impositions so long as Borrower is not in breach of any covenant or agreement of
<br />Borrower in this Instrument. Lender shall make no charge for so holding and applying the Funds, analyzing said account or for
<br />verifying and compiling said assessments and bills, unless Lender pays Borrower interest, earnings or profits on the Funds and
<br />applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Instrument that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires
<br />interest, earnings or profits to be paid, Lender shall not be required to pay Borrower any interest, earnings or profits on the Funds.
<br />Lender shall give to Borrower, without charge, an annual accounting of the Funds in Lender's normal format showing credits and
<br />debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for
<br />the sums secured by this Instrument.
<br />If the amount of the Funds held by Lender at the time of the annual accounting thereof shall exceed the amount deemed
<br />necessary by Lender to provide for the payment of water and sewer rates, taxes, assessments, insurance premiums, rents and Other
<br />Impositions, as they fall due, such excess shall be credited to Borrower on the next monthly installment or installments of Funds
<br />due. If at any time the amount of the Funds held by Lender shall be less than the amount deemed necessary by Lender to pay water
<br />and sewer rates, taxes, assessments, insurance premiums, rents and Other Impositions, as they fall due, Borrower shall pay to
<br />Lender any amount necessary to make up the deficiency within thirty days after notice from Lender to Borrower requesting
<br />payment thereof.
<br />Upon Borrower's breach of any covenant or agreement of Borrower in this Instrument, Lender may apply, in any amount
<br />and in any order as Lender shall determine in Lender's sole discretion, any Funds held by Lender at the time of application (i) to pay
<br />rates, rents, taxes, assessments, insurance premiums and Other Impositions which are now or will hereafter become due, or (ii) as a
<br />credit against sums secured by this Instrument. Upon payment in full of all sums secured by this Instrument, Lender shall promptly
<br />refund to Borrower any Funds held by Lender.
<br />3. APPLICATION OF PAYMENTS. Unless applicable law provides otherwise, all payments received by Lender from Borrower
<br />under the Note or this Instrument shall be applied by Lender in the following order of priority: (i) amounts payable to Lender by
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