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<br />shall deem necessary to protect any of the liens or security interests of Lender covered by this Instrument ( "Other
<br />Impositions "). Unless otherwise provided by applicable law, Lender may require Funds for Other Impositions to be
<br />paid to Lender by Borrower in a lump sum or in periodic installments, at Lender's option.
<br />The Funds shall be held by Lender or, at Lender's option, in another institution, the deposits or accounts of
<br />which are insured or guaranteed by a federal or state agency. Lender shall apply the Funds to pay said taxes,
<br />assessments, insurance premiums and Other Impositions as they become due provided that Borrower is not in breach
<br />of any covenant or agreement of Borrower in this Instrument. Lender shall make no charge for so holding and
<br />applying the Funds, analyzing said account or for verifying and compiling said assessments and bills, unless Lender
<br />pays Borrower interest, earnings or profits on the Funds and applicable law permits Lender to make such a charge.
<br />Unless applicable law requires payment of interest, earnings or profits on the Funds to be paid, Lender shall not be
<br />required to pay Borrower any interest, earnings or profits on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds, in Lender's usual format, showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are hereby pledged as additional security for the
<br />indebtedness secured by this Instrument.
<br />If the amount of the Funds held by Lender at the time of the annual accounting thereof shall exceed the
<br />amount deemed necessary by Lender to provide for the payment of taxes, assessments, insurance premiums, and
<br />Other Impositions, as they fall due, such excess may be refunded to Borrower following such audit or may be
<br />applied by Lender at its option to payments due in the future. If at any time the amount of the Funds held by Lender
<br />shall be less than the amount deemed necessary by Lender to pay taxes, assessments, insurance premiums, and Other
<br />Impositions, as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within
<br />thirty days after written notice from Lender to Borrower requesting payment thereof.
<br />Upon Borrower's breach of any covenant or agreement of Borrower in this Instrument, Lender may apply,
<br />in any amount and in any order as Lender shall determine, in Lender's sole discretion, any Funds held by Lender at
<br />the time of application (a) to pay taxes, assessments, insurance premiums and Other Impositions which then are due,
<br />or (b) as a credit against any indebtedness secured by this Instrument. Upon payment in full of all sums secured by
<br />this Instrument, Lender shall promptly refund to Borrower any unapplied Funds held by Lender.
<br />Lender hereby agrees to waive its right to require payment of the Funds so long as Borrower does not
<br />default under the Note, this Instrument, or any other instrument securing the Note or other Loan Documents
<br />provided that Borrower provides Lender with timely evidence satisfactory to Lender that all taxes, assessments,
<br />premiums and, if requested by Lender, Other Impositions have been paid in full prior to delinquency. If such a
<br />default occurs or if Borrower does not provide such evidence, Lender may revoke its waiver at any time thereafter
<br />by giving written notice thereof to Borrower.
<br />3. APPLICATION OF PAYMENTS. Unless applicable law requires otherwise, all payments
<br />received by Lender from Borrower under the Note or this Instrument shall be applied by Lender in the order of
<br />priority as determined by Lender in its discretion.
<br />4. CHARGES; LIENS. Borrower shall pay all taxes, assessments, premiums, and Other
<br />Impositions attributable to the Property at Lender's option in the manner provided under Paragraph 2 hereof or, if
<br />not paid in such manner due to a waiver by Lender, by Borrower making payment, when due, directly to the
<br />appropriate payee thereof, or in such other manner as Lender may designate in writing. Borrower shall promptly
<br />furnish to Lender all notices of amounts due under this paragraph and, in the event Borrower shall make payment
<br />directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly
<br />discharge any lien which has, or may have, priority over or equality with, the lien of this Instrument, and Borrower
<br />shall pay, when due, the claims of all persons supplying labor or materials to or in connection with the Property.
<br />Without Lender's prior written consent, which may be withheld in Lender's sole and absolute discretion (unless
<br />specifically provided to the contrary in this Instrument), Borrower will not permit or allow any lien inferior to this
<br />Instrument to be perfected against the Property.
<br />5. HAZARD INSURANCE. Borrower shall keep the improvements now existing or hereafter
<br />erected on the Property insured by carriers at all times satisfactory to Lender against loss by fire, hazards included
<br />within the term "extended coverage," rent loss for not less than one year's gross income from the Property, and such
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