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<br />UNWORN COVMAtJ 'Borrower
<br />fS. and Lender covenant and ee as follows:
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<br />- - -. - ,�–r -- – -�?� --- •atEie."; ftrpaymnVarA Lae Cluarges. Borrower shalt promptly pay cs3ren due -
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<br />:_ t+laepriocipai of acrd interest.on the debt evideticad by the Note and any prepayment and late charges date under the Mote.
<br />2. Flan dtt forTSM attti`Iwranee Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Leader on the day. monthly payments are due under the Note, until the Note4s paid in full, a sum ("Funds',) equal to
<br />one- twelfth of (a} yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />Ieateboid payments or ground rents an the .Property. if any; (c) yearly hazard insurance premiums-,'and (d) yearly '
<br />mortgage insurartce_prertt, qms, if any. These items are called "escrow items" Lender may estimate the Funds due on the
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<br />berms ofeurrent data and reasonable estimates of future esalrow items.
<br />The Fytands 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 />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 />regaires 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,amd the
<br />purpoaefor which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this SaWdty Instrument.
<br />U the amount of the Funds held by Lender. together with the future monthly payments of Funds payable prior to
<br />the du e'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. U the
<br />amount of the Funds held by Lender is not sufficknt to pay the escrow items when due, Borrower shall pay to Lender any
<br />. amount necessary to make up the deficiency in 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 Borrower
<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 its acquisition by Lender. any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Paymata. 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 charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />C Cbats/ea; Liens. Borrower shall pay all taxes, assessments, charges, fines 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, Borrower shall
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<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Leader all notices of amounts
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<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />treceipts evidencing the payments.
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<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) sec.,res 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 />Hazard iaaunwee. 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 doverage" and any other 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 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 Leader 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 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 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 rror io the a— ClUisition shall pass to Lender to the extent of !he sums secured by this S =unit;
<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 />— Honower comply with ibe niovisinns of- the ieace: and if llarmwer acquire. fee toe to t -e ro; ert y, Ae leaseltofd'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 fails to perform the
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<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
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<br />Lender's tights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may doand pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property: Lenders-actions may include paying any sums secured by a lien'which has priority over this Security
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<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 nfat have to do so..
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
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<br />.. Se�qurity.instrument. Unless Borrower and Lender agree to other terms of payment. these amount,, shall bear interest from
<br />the date of disbursement at the Note rate and' shall be payable, with interest, upon notice from Leader to lorrower
<br />requesting payment.
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