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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree us follows:
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<br />1. Payment of Principal and Interest; Prepayment and Late Charges. 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 />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 instrument; (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, unless
<br />i 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 git'e to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />pwxpase IZ-r which each debit to the Funds was made. The Funds are pledged-as additional security for the sums secured by
<br />fhia.Sm, dty 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, shnl3: exceai the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly r id te. 6drrower or credited to Borrower on monthly payments of Funds. If the
<br />auiount of the Funds held by Lender is not sufficient to pay the escrow iteitts, when due. Borrower shall pay to Lender any
<br />amount neoessary to make up the deficiency in one or more payments as regtured by. Lender.
<br />Upon payment in full of all sums secured by this Secuiity Instrument, kez1•de¢� *i5u11 promptly refund to Eor wer•
<br />any Funds held by Leader. If under paragraph 19 the Property L-, sold or acquireii-by Lender, Lender shall apply, no later
<br />than immediately pricer to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time olf
<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 undef
<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 d ue.
<br />4. Clltarges; Lfeaa. Borrower shall pay all taxes, assessments, charges, fines attd 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 is 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 fumish 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 />1 agrees to writing to the payment of the obligation secured by the lien in u iuftiuicr acG2fstIIbfc lc. L..wttdV i, (l;) wt:twto :: a
<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 />agreeznf-nt satisfactory to Lender subordinating the lien to this Security instrument. if lender determines that goy part of
<br />I the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give 1orrower a
<br />notice identifying the Hem 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 />S.. Kazard 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 />i 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 Lender 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 Lenders 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 />1 Borrower abandons the Property, or does riot 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, Borrowers 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 />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; %fortpge insurance. if Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly atfect
<br />Lenders rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the %slue of the Property and Lenders rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority o%cr this Secunty
<br />instrument, appearing in court. raying reasonable attorneys' fees and entering on the Property to make repairs Although
<br />Lender may take action under this paragraph 7. Lender does not has a to do so
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Bormµer secured by this
<br />Securtty Instrument. Unless Borrower and Lender agree to other terms of pa} ment. thoc amount.ohall bear u:terem from
<br />the date of disbursement at the Note rate and shalt he payable. µ11h mtcre %t. upon notice from Ixndet tr It,1rr1•ucr
<br />requoting piiynrent
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