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<br />200702120
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<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 indebtedness
<br />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 pay to Lender
<br />on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein
<br />"Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development
<br />assessments, if any) which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus one-twelfth
<br />of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if
<br />any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable
<br />estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes
<br />such payments to the holder of a prior mortgage or deed of trust 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 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.permits Lender to make such a charge. Borrower and Lender may agree
<br />in writing at the time of execution of this Deed of Trust that interest on the Funds shall be paid to Borrower, and unless such
<br />agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any
<br />interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds
<br />showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are
<br />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 to the
<br />due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by
<br />Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower
<br />shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require.
<br />Upon payment in full of all sums secured 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, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender
<br />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 Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note.
<br />4. Prior Mortgages and Deeds of Trust: Charges: Liens. Borrower shall perform all of Borrower's obligations under
<br />any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including
<br />Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and
<br />other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and
<br />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 "extended coverage", flood 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 by 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. Lender
<br />shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other
<br />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 Lender. Lender may make proof of
<br />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 notice
<br />is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is
<br />authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or
<br />to the sums secured by this Deed of Trust.
<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 is on
<br />a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the
<br />declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations
<br />of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and 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, then
<br />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 to
<br />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 become
<br />additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of
<br />payment, such amounts shall be payable upon notice from Lender to Borrower requesting. payment thereof. Nothing
<br />contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder.
<br />8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property,
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related
<br />to Lender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with
<br />a lien which has priority over this Deed of Trust.
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