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<br />may. � V
<br />U'ViFO1R1<[ CGVENAN73
<br />Hgrro�rer sad i.eat(eroavenaitt and agtYe is follows: Borro �'-
<br />Z. Pat�eat o[ Priadpv astd Iata e:t )PreWT�eiot it Lste . ': wer shall w
<br />the principal oraad interest ore the debt evidenced by the Note and any promptly pay boot sue`
<br />2. Funds for Tara teal I P�Y!++�t and Iate;charges due under the Note.
<br />to Lender on the f a nixes a araaee. Subject to sWi=bk Isw or to a written waiver by tinder. Bantwer shall pay
<br />Y Y payments are due tinder the Note, until the. Kole it paid in fell!, a sum ("Funds ") equal to
<br />one-tweft of (a) Yearly tuts and its which may attain priority over this Security Instrument; (b) yearly
<br />leasehold WY�n or ground rents' an the Property, if any; (c) Yearly =2 insuraottx i
<br />mortgage insurance i preen urns; and (d) Y�Y
<br />preen ums, if any. These items are calki ..--x, -Ow itertts." Lender ntay estimate tb 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). bender shall apply the Funds to pay tae escrow items,
<br />Under may not charge for holding and applying the Fund:., aralYzing 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 array 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 Br: rower any.interest or earnings on the Funds. Lender
<br />shall gi ve 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. V ,,
<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 !o pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency' n one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrt wer
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or i .,s acquisition by Lender, any 1 un,is held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note, second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due•, and last, to principal due.
<br />4• Charges; Liens. Borrower shall pay all taxes, assessments, charges, fints and impositions attributable to the
<br />Property 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, Borrows 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 ;he obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends aga ;nst enforcerrnent of the lien in, legal proceedings which in the Leader'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. 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 other hazards for which Lender
<br />requires insurance. Thi:; 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 :vithhetd.
<br />All insurance policies and renewais 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 Len( :er 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. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Bo-.-ower 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 sums secured by this Security Instrument, whether or not then due, with any -xcess 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 procat-ds :o 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 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is scquired by Lender, Borrower's right to any insurance policies and proceals resuiting
<br />from damage to the Froperty prior to ,.he 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 Proper; Leaseholds. Borrower shall not destroy, damage or substnntially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower whall camply with the provisions oNhe lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge, unless I cede r agrees to the merger in writing.
<br />7. Priotrrtion of Lender'i Rights in the Property; ?Mortgage Insurance. If Borrower fails to perform the
<br />covenants and alree!nents containal in this Security instrument, or there is a legal proceeding that may significamly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lcndc;' may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lrider'K actions may include paying any sums secured by a lien which has priority over this Security
<br />strument, appe3nng i,i court, paying reasonable attorneys' fees and cnter:ng on the Property to make repairs. Although
<br />Lender may take action , nder this paragraph 7, Lender does not have to do ra.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt pf borrowe( secured by this
<br />Security instrument. Unless Borrowei and Lender agree to other terms of payment, these amounts shall bear interest from
<br />tae 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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