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<br /> iJNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br /> principal of and interest on the debt evidenced by the Note and any prepayment and late chazges 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 to
<br /> Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and
<br /> assessments which may attain prioriry over this Security Instrument as a lien on the Property; (b)yearly leasehold payments or ground
<br /> rents on the Properry, if any; (c)yearly hazard or property insurance premiums; (d)yearly flood insurance premiums, if any; (e)yearly
<br /> mortgage insurance premiums,if any;and(�any sums payable by Borrower to Lender,in accordance with the provisions of paragraph 8,in
<br /> lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and
<br /> hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's
<br />' escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.§ 2601 et
<br /> seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold
<br /> Funds in an amount not to exceed the lesser amount. Lender may estimate the amaunt of Funds due on the basis of cunent data and
<br /> reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the
<br /> Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br /> verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a
<br /> chazge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by
<br /> Lender in connection with this loan, unless applicable law provides otherwise. 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. Borrower and
<br /> Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an
<br /> annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was
<br /> made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to
<br /> Bonower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at
<br /> any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case
<br /> Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more
<br /> than twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund ro Borrower any
<br /> Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of
<br /> the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this
<br /> Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> pazagraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under
<br /> paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all tu�es, 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. Borrower shall
<br /> pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time
<br /> directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this
<br /> paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br /> 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 faith
<br /> the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or(c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this
<br /> Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this
<br /> Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of
<br /> the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire,hazards included within the term"extended coverage"and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br /> requires. The insurance carrier providing the insurance shall be ehosen by Bonower subject to Lender's approval which shall not be
<br /> unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option,obtain coverage to
<br /> protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br /> paid premiums and renewal notices. In the event of loss, Bonower shall give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof of loss if not made promptly by Borrower.
<br /> Form 3028 9/90 (page 2 0}'8 pages)
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