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<br />101120
<br />U- QFORM. COVENA%rs. Borrower and Lender covenant and agree as follows:
<br />1. payment of Principal and Interest; Prepayment and Late Charges. Borrovtcr 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. Funds for Taxes and Insurance. Subject to applicable law or to a written wain er 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 sun' (,'Funds") equal iti
<br />1 one-twelfth of: (a) yearly taxes and assessments which may attain priority over thix Security in+trtunent: (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 current 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, unlem
<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, shall 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 the escrow items when due, Borrower shall pay to Lea der any
<br />amount necessary to make up the deficiency in oneor more payments as required by Lender.
<br />Upon payment in full of all surts� =this this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under pair,,' 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sate of ei�yroperty or its acqui .i
<br />t% t-,T1 by Lender. any Funds held by Lender at the time of
<br />application as a credit against tine sums st i:Urcd b-. tbis SecuriW'Ir
<br />3. Application of Payments. Unless aprti Jst !as' f�. ,� t;rw� rr;s;� wise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first. to late c2t;.-s uue. +:aa° ?re ante second, to prepayment charges due under the
<br />Note; third. to amounts payable under paragraph 2; fcarth, to. fm,6 ,mot due: and last, to principal due.
<br />4. Charges; Llens� = Borrower shall pay alt'taxes, aa ,sznents. charges, fines and impositions attributalate.to the
<br />Z'ttaperty which may diblill priority. over this Set:iin, instrument. and leasehold payments or ground rents; if any.
<br />E ri»wer shall pay these.'fjWigations in the manner ps Aded in paragraph 2, or if not paid in that mart.>;er, Borrower shall
<br />l�:rir. them on time directly to the person owed payment.. Borrower shall promptly furnish to Lender all notices of amounts
<br />O'be paid umier this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to E� des
<br />t✓:ceipts evidtitt-'ing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrevr,_ : Gt
<br />agrees in writing to the P- 4)rnent of the obligation ix.:ured by the lien in a rnamier acceptable to Lender; (b) contests in gaol
<br />faith the lien by, or deft ids against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enfiirreml erit'of the lien or forfeiture of any part of the Property: or (c) secures from the holder of the lien an
<br />agreement s:t;i---hicaary to Lender subordinating the lien to this Security Instrument. If finder determines that any part of
<br />Cite Property is salsjecr ux a lien which may attain priority over this Secur. -t;l 1;tsiriment. Lender may give Borrower a
<br />notice identifying the lir;n. Borrower shall satisfy the lien or take one or more of tflc �t:iOrts set forth above within 10 days
<br />iJfVie giving, of notice.
<br />5.. Card Insurance. Borrower shall keep the improv�:ments nil t �x: rig at hereafter en +=i on the, Property
<br />insured agaihi;t loss by fire, hazards included within the term "ectcended c0t� age' and a.m; other haxat d Gar which Lender
<br />r wires insurance. This insurance shall be maintained in the amounts' altd for the periods that Under requuires. The
<br />insurance carrier providing; the insurance shall be chosen by Borrower. 4ubject to Lender's approval. hich shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a stand 'rd mortgage claut.e.
<br />Lender shall have the right to hold.l:lie policies and renewals. If lender requires, Borrower shall promptly give to Lender
<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. Larder may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied li-i <wruration or repair
<br />of the Property damay.d. if the restoration or repair is a - A)nomically feasible and Lender's security ts.ntl1 lessened. If the
<br />restoration or repair is riot economically feasible or Lender,, w:i:urity would be lessened, the imurai w pmet cds shall be
<br />applied to the sums sccureA by this Security Instrument, whether or not then due, with any excess p..id to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from lender that the-imurance carrier has
<br />offered tosettle 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 pruccedv to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 ur change the amount of the pay ments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to auy 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 />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower falls to perform the
<br />covenants and agreements contained to this Security instrument. or there is a legal procceding that may vgnificantiv affect
<br />Lender's rights to the Property (such as a proceeding in bankruptcy, probate. for cmidemnation or to enforce laws or
<br />regulatiorsl. thee: Linder may doand pay for wbateveris necessary to prrtect the saluc of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a Iten which has priority over this Security
<br />L Instrurnew, appearing in court. paying reasonable attoritcys fees and entering on the Property to make repairs Although
<br />1 ender inay take action under this paragraph 7, lender does not Katie to dal co
<br />An) amounts disbursed by Lender under this paragraph 7 shall become adcht utna1 debt of It, i miser secured by III 7s
<br />Security Instrument ltnleys Hortoaer and i ender agree to other tettrsof 11% Welt. these at oat,. oh;tll hear n;s, tot fr+,so
<br />the date of dtsburccnient at tl,e time rate and shall he payable. with Inlet 0t. upon nntwc train I cudcr in It,uroacr
<br />requesting payment
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