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<br />COVENAKM Borrower and Lender covenant and agree as follows:
<br />L Payamt of Pdadpal od lateresq Prepaytaatt tad Lte Chuges. 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 />A Foads for Taxes tad law=ce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly paymom an due under the Notes until the Note is paid in full, a sum ("Funds!) equal to
<br />one - twelfth of: (a) yearly taxis arid: assessments which may attain priority over this Security Instrument; (b) yearly
<br />toehold payments or ground aetittt. on the Property, if any; (c) yearly hazard insurance premiums, and (d) yearly
<br />mortgage insurance pnemittmse- W611 . These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of eurmt. data and realm ebtac;timates of future escrow items.
<br />The Funds shall be Bold iit:an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (facluding Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leader may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Leader 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 theFunds showing credits and debits to the Funds and the
<br />purpose for whiab.aeh debit te. ilia Funds was mach The Funds are pledged as additional security for the sums secured by
<br />thisSecurity Instrument .
<br />If the amount of thit Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow itcars, shall aceed the amount required to pay the escrow items when due, the excess sbdl be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on rr -a-aft payments of Funds;. the
<br />amount of the Funds held ky-Lender is not sufficient to pay the escrow items wh= d ,a-- Bomwer shall pray to Lecsr any
<br />amount necessary to make up the deficiency in one or more payments as required b3. Wider. :
<br />Upon payment in full of all sutras secured by this Security Instrument: Lcjw.er shall promptly mind to 56wtue.r.
<br />any Funds hold by Lender. If under paragraph 19 the Property is sold or acquired t' , Lender shall apply, MO L -:e
<br />than immedifttdst prior to the sale of the Property or its acquisition by Lender, as gu. -Eneld by Lender at the 0=-- of
<br />application.aua cMAL- against the sums secured by this Security Instrument.
<br />3. Appliiuttfon" of Flaymeats. Unless applicable law provides otherwise, z�! ra3ments received by Lender under
<br />paragraphs l and 2 shad: be applied: first, to late charges due under the Note; seoaa3r rt (i epayment charges due under the
<br />Note; third, to amountu payable under paragraph 2; fourth, to interest due, and L a rd, Bee al due.
<br />4. Charges Liens. ' Borrower shall pay all taxes, assessments, charges, fines anti: impositions attributable to the
<br />Property which may attain priority.ever this Security Instrument, and le&sehold payments or ground rents, if any.
<br />Bomwer shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay-th m on time directly to the persga.awed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />tote 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 Insim. -anent unless Borrower. (a)
<br />sees g payment of the Deli lion secured b the lien in a manner
<br />in within to the obligation y acceptable ev .ender, (b) contests in good`
<br />frith 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 subordim ins the lien to this Security Instrument. If Leader 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 s1741 satisfy the lien or take one or more of the actions set forth above within 10 days
<br />ofthegivingofnotice.
<br />S. Hw and lasara>tee. Borre"r shall keep the improvements now existing or hereafter erected on the Property
<br />is
<br />irsumd against less by fire, hazards incltui ed within the term "extended coverage" and any other hazards for which Lender
<br />requires insurmr: e. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
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<br />insurance dander &Tivkhng the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />um aaonably withbeld:
<br />All insurance polities and renewsh 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. Borrowa shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give ps4mpt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
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<br />Unless Lender and Borrower otherwise agree in waiting,. insurance proceeds shall be applied to restoration or repair
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<br />of the Property damaged, if the restoration or repair is. exm.=.ajally feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's .-sty would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, %tether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 drays a notice from Lender th.-r the insurance carrier has
<br />offered to settle a claim. them Lender may collect the ins - usance proceeds. Lender may use the prdcmds to" repair or restore
<br />the Property or to pay sums secured by this Securiry instrument, whether er not thews due. Tree 304iiy period will begin
<br />when the notux is given.
<br />Unless lender and Borrower of berwise agree in writing, stay application of proceeds to principal shall not extend or
<br />Postpone the due date of the monthly payments referred to in parzgraphs 1 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. Presmatlon and Maintenance of Proper; 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 Propfr(A #sd#asehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leader's R10ts In the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may signifleantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />resukt:.o=s), thrrs Lender may doand pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in
<br />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 T. Lender does not have to do so.
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<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
<br />payment.
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