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<br />UN1f :O m CoYc- "N,Fs. ; Borrower and Lender covenant and agree as fol lows:
<br />104775
<br />!. 8,ayeRettt aF lrj'fnc111a! and intesrest; Prepayment aad Tate Chturgm. Borrower shall promptly pay when due
<br />the principal of and itmare`i.on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds forTaxes mad 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 ( "Fundse) equal to
<br />one'twelfth af, (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payment: 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 afeurrent dwa end reasonable estimates of future escrow items.
<br />The Furto snail be held in an institution the deposits or accounts of which ate insured or guaranteed by a federal or
<br />state agency (iticltiding 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 />L ender res tttay agree in. writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requi interest. to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to L;orroi,ger, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for whiab.eaah debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security 14struaytent.
<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 Borrewces 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 Lender any
<br />amount necessary tc 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 Ex der: If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no fats. -
<br />than immediately prior to the sale of the Propperty or its acquisition by Lender. any Funds held by Lender at the tirne:uf
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Paymeets— . V rum applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall) be applied-..fm, fm latec:harges due under the Nate; second, to prepayment charges due under they
<br />Note; third, to amounts payable undim parags4,,qb� 2; fourth, to interest due; and last, to principal. drxc_.
<br />4. Qtarm Liens. Bmrawer shall pay all taxes, assessments, charges, fines.and impositions attributable to the
<br />Property wfiich may attain pri:•or . over this Security lmumment. and leasehold payments or. ground rents, if any.
<br />Borrower shall pay these obligaxi Y in the manner proti;:ded in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay them on time dim oly to the person owed rr *ment. Skerrower shalt promptly fumish to Lender all notices of amounts
<br />to be paid under the Onagraph. If Borrower =; es these payments dfm---tly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly i�charge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment! T-ttze 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 enforcerent of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an '
<br />agreement satisfactcrr co Lender subordinating the lien to this Security instrument. If Lender determines that any part cf
<br />the Property is. rµ ltc:'to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice i&V- fYvk-4 Ob.- lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 d3ys
<br />of the giving cif nct:;�a--
<br />S. Hazard Insurance. Borrower shall keep the 7,provemeri 1s aw existing or hereali:ctt erected on the ProNM.y
<br />insured against loss by fire, hazards included within the term,.' extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained ir the amounts and far Ve periods that Lender.. requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject " 3: T, der's approval wh:di shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a srt~;lard rrwrtgage clause
<br />Lender shall have the right to hold the pe liccies. and renewals. If Lender requires, &F-1 ower sF.:& promp:ly :ii.4 to Lender '
<br />all r=— ilst:s of paid premiums and renewal notices. in t hr-_ went of loss, Borrower !d%; it give prompt notice ro:I:I;.L insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrow,.-r.
<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 Lender's security is not lessened. If Old;
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall Lre
<br />applied; to the sums secured by this Security Instrument, whether or not then d;;(. , with any excess paid to Borrower. If
<br />Borrower' abandons the Property, or does not answer within 30 days a notice frcm. Lender that the insurance carrier has
<br />offeredco 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 er,Vication 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'rig1,-,t to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Leander 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 titlesball 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
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may srgnifirant ty 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 Lender may do and pay for whatever is nece4sary to protect the value of the Property and Lendcr's rights
<br />in the Property. Lenders 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 7. Lender does not have to do so.
<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 paymcrnt, 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 payment.
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