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<br />,UNIFORM COVENA Nib. Borrower and Lender covenant and agree as follows: 89— 100903
<br />1t. Payment of Principal and Iatereat; Prepayment and Late Charges. Borrower shall promptly pay when ue
<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. 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 ( "Funds ") equal to
<br />one-twelfth of- (a) yearly taxes and assessments which may attain priority over this Security Instrulnent,, (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (e) 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 ofcurrent 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 > runds 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 anal debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional sera' Cur the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly paymet;'3s 4 F i=ds. payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or creli.ted to Borrower on men m', ti . k Hof Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the es- =w items when due, s,. n pay to Lemdirrany
<br />:^,:ttra.unt necessii: t W !bake up the deficicanym' oneer were payin=tsas requiredby Lender
<br />Upon pa ; ectr in ft3J1; of all sump secured by ¢his Security l �,s�* �u t; Lmder sha`.� � *artf p �w i .° �i ,cl so ]t?i='tc�.
<br />y Funds held de Ifsmder parr y-rph 19 the Property is � l5,br: k4a *ed by Len iLe4= s"arsll.app ;�, n,& Izter
<br />than immediate : 7r""" "' +�' {ate of t!te.Lr?-operty or its aCq�ti_�3ti r Ry L Frm-49 b!�Ifd by Lender at the r�^e .n
<br />application as a,��a�asrt-'r�sur,- ssecrired by this.Security:insfimiim- ent.
<br />3. Apgii �aa of E ni s.' Uiitess applicable law t oV des othervirfs all pay amils'received by LM&r Iii' &'er
<br />V= *sphs 1 a:.' Z shall he applied., firs. bz late charges due under the Note; second, to prepa3 =ent chargres due undeT the
<br />Nett bird, to ru.munts payable under paragraph 2; fourth, to interest due; and last, to print al due.
<br />4 tlrarps; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Ptuperty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any 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 subordinating 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 Instrument, 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. Mari! 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 other hazards for which Lender
<br />requires insurance. This insurance sh2ff be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the irs;rsance 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 inclwu ea standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If L=der requires, promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of Ocss, Borrower sk g�s-e prompt notice to the insurance
<br />Gsminerand Lender. Lender may make; proofof loss if not made promptly by Ba>raooer.
<br />Unless Lender and Borrower otherwise a f(r. in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or rep. a tr is economically feasible and Lenders security is not lessened. If the
<br />restoration or repair is not economically f� ib!cr or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums 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, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property. allow= the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />- Harrower shall comply Willi-fl2a provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />- Ceetitle shall not merge unless Lender agrees to the m•rrger in writing.
<br />7. PmM:ectlon of Lender's Rights In that ft*4erty; Merf)mge Ins+:mrice. If Borrower fails to perforTn the
<br />CovenantsV.,f,' "ements contained in this Security tn;irumenr, cr there is a (ega! proceeding that may s;gaificanA) .A.-ct
<br />F,autdees rig[; +'a ::n the Prof -mrty (such as a proceedings. in bankruptcy, probtt;,: for condemnation or to, enforce laws or
<br />r� WsWio tho,Lea -dw. maV do and pay for wl;at1:v,ar z necessary to protect Ott: value oftl:e Property- aid. Lender's rights
<br />ill! the Property,':• 'f.rauLr's actions may include payirg any sums secured by a lien which hit; priority over this Security
<br />Instrument, appearrrtg in court, paying reasonable attorneys fees and entering on the Proreity 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 he payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument.
<br />Harrower shall pay the premiums required to maintain the insurance in effect until such trine as the requirement for the
<br />in%urancetermrnates in accordance with lkirrower sand i.enderswritten agreement or applicable late
<br />-, S. Inspection. Lender or its agent may snake reasonable entries upon and rnspceuons of the Property I ceder
<br />*. {hall gis a Nurrtm,er notice at the time cif or prior to an inspection specifying reasonable came for the m%pertI'll
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