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<br />89, 100507
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Paymeat of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Futatiti for Taxes and lasufance. Subject to applicable haw 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 ( "Funds") equal to
<br />i one•twelflh of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (b) yearly
<br />leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of Curren data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution 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 the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shaR exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay ft escrow items when due, Borrower shall pay to Lender any
<br />awxmnt necessary to make up the deficiency in one or men payments as required by Lender.
<br />Upon payment in W, eft?) sums secured by this Security Instrument, Lender shall promptly r eBmd to Borrower
<br />any Funds held by Lender. If ►ruder paragraph 19 the Property is sold or acquired by Lender, Lender sW, - fir; nee later
<br />than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lerr Wat the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Appliadoa of Payaents. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second. to prepayment chanes due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. .
<br />4. CYarm Lieas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. over this Security Instr=cnt, and leasehold payments or graamd rents, if any.
<br />Borrower shall pay these obligations in the manner peovided in paragraph 2, or if not paid in that maimer. Borrower shall
<br />pay them on time directly tug the person cawed payment Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Betrovr r makes these ps) ments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall nromntly discharrte. anv lien which has priority over this Security Instrument, unless Borrower.. (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subo rdinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security lnstrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<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" and any ether hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lander
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof 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
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sutras secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or 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 restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, airy, application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs l and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Bonowet's right to nay insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to tite extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Pten"adon and Maintenance of Properly; I.easeltoIdx . Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or occttttlit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee tithe sheath not merge unless Lender agrees to the merger in ailing.
<br />7 Peoftedon of Lender's Rights In the Property; Ma>�ge Insurance. If Borrower fails to perform the
<br />covenants arndaagreements contained in this Security Instrument.. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for cordem..Ration or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from lender to Borrower
<br />requesting payment.
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