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<br />UNIFORM COVENANT'S. Borrower and Lender covenant and agree as follows: gq... 105005
<br />1. Payeat of PrW*d rani latesra! Pt'epayx"t rand Late (forges. Borrowers all 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. Fatness for Taxes and Inu aace. 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 acid (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 eurreat data and reasonable estimates of future escrow items.
<br />- The-Funds shall be held in an institution the deposits or Accountis ofwhich are insured. or guaranteed by a federal er-
<br />state agency (including Leader 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 s unds, analyzing the account or verif<jingg the escr.+r items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to -make suti.w :i3g� Borrower and
<br />Lender may agree Lc writing that interest shall be paid on the Funds. Unless ail. agreentrat��ia i ct applicable law
<br />requires.intemst ra-be paid, Leader shall. rm 2 be required to pay Borrower any int+ vin: ar' 0 .tom funds. Lender
<br />shalt pie ,ism? it, without charge, art; l ascourx of the Funds showing, c ity: rd s etiiits tee t�rrsnds and thr
<br />purp&e, t'txr vr`., , .:osch debit to the Funds-.wp' R=e!F ; ds are pledged as adLdi err ty for the sums secured b}..
<br />this t.
<br />La i?seemf� `: L tt tFu*i s b� {.J�k tta'E:o,. ti�gw �r asit3t tiu: t(arA m tsil, &4 im,�ejs of Funds payable prior to
<br />the dare% fites,^r iD 3srr:5 ei tsc amayi*t`..tifr <� ;4 t Li4 c rev petitsLn due, the excess shall be,
<br />at Borrower's vlr ;i utter promptly repadi.tu Borrower or credit. t,SLrurrower on monaly payments of Funds. If the
<br />amount of the Furness held by Lender is not sufficient to pay the escrow: iisems when due,. Bormawer shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by tender-, .
<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 nor 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 Payments. 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 />4. Cbargm 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 shalt
<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 the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
<br />faith the lien by, or defends against enforcfi�tnt 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 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 />S. Hazard Insurance. Borrower shall keep the improverreras now existing or hereafter erected c *e Property
<br />insured against loss by fire, hazards included within the term "extent" _d coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amum s and for the periedy that Lender requires. The
<br />insurance earner providing the insurance shall be chosen by Bo4romer subject to Lenders approval which shall not be
<br />unreasonably wiih%eld.
<br />All insurance policies and renewals shall be acceptable to Lender and s1 all include. a standard mortgage clause.
<br />Lender shall have the rioat u•o 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 p -ompt 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 rep- it
<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 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 Won a leasehold,
<br />Borrower shall comply with the provisions ,of the lease, and if Borrower acquires fee title to the Property, t he leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leg's Rights in the Property; Mortgage Insuran-m. If Borrower fails to perform the
<br />covenants and agreements cvnnanned in this Security Instrument, or there is a legal Grxe_ : ^ that may significantly affect
<br />Lender's rights in The Prope ny (rhuch as a proceeding in bankruptcy, probate. for cectciamr3tion or to enforce laws ea
<br />iep!a: ors), tinm lender may do and pay 1'cr whatever is necessary to protect the value cf d-e pcoperty and Lender's rig'.
<br />; :s
<br />in the Property. Lenders ac ?:ens may include paying .-my sums secured by alien which ba& priority n,„er this Security
<br />Instrument, ap;earrag in court, paying reascnable attorneys' fees and entering cn the Proper : a make repairs. Although
<br />Lender may takeaceion under this paragraph 7. Lender does not have to do so.
<br />Any amean -9 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 payment.
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