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<br /> f3C��tRUWEP, c�%�VENANTS that 13orrower is lawfulty seized of the estqte i�ercby conveyed Ftnd has d�P;ight to grant
<br /> and cc,nvey �he Praperty a,id that d�e P�nperty is unenc�mbererf,excep;fo��encumbrances of recorr�. �vrmwer warrants and
<br /> will d4fend generulty the tide tc�the Pro�rrty a�ainst all claims an.l demt�.��ds.subject tn any encumbrances of record.
<br /> UNIFORM CU�`CNAI�'TS. .
<br /> 3. PaymP��t of Principaf,Interest and LAte Charge. Botre�uer sh�ll pay when du� the�:rincipal of,and interest on.
<br /> tl�e debt evidenc�d bv the Note and latP chazges due under the No¢e.
<br /> 2. MonUify Paymen:t of Taxes, Insurance,an� OtheP Charges. Snrmwer shall include in edieh manthly puyment,
<br /> to�cther with the �rincipal and interest r� set fortt; in the Note and any late chnrges, a su;n for (a) taxes and sperial
<br /> assessmenL� levie<i or to t�e lev�� against the Pro,�erty, (b) !easehoid payments or grour;d rents on the Property, and
<br /> (c) premiums for insurance required under Fnragraph 4. In ariy year in w�hich the t,ender must pay a mortgage insurance
<br /> prerrtium ta the Seci•etary of Housing and Urba�� veve.lopment ("Secretary"), or in any year in which such premium would
<br /> have been reyuire3 iF Lender still held the Security Ir.shument,eact� monthly pflymcnt shall also include either: (i) a sum for`
<br /> t�te annual murtga�e insurance premi�m to be paid by Lender to the Secretary,or(ii)a monthly charge instead of a mortgage
<br /> insurance pr�mium if t'�is Securiry I�strutnent is held by the Secretary, in a reasonable amount to be deternvned by the
<br /> Secretary. Except for the monthty chazge by the Serretary,these items are ealled"Fscrow Items"and the sums paid to I.cnder
<br /> are c�lled"E�crow Funds."
<br /> Lender may,at any time,cnl!ect Ftnd hold amounw for Escrow�?tems in an aggregate amount not to exceed the rr�aximum
<br /> amoitnt that may be required for Bonot�er's escrow accnr�nt under the Real Estate Settlement Procedures Act of 1974, 12
<br /> U•S.C.§ ?_501 t se . and implerr2enting regulaiions, �4 �;FR P;�rt 3500, as they may be amended from time to time
<br /> ("KESPA"), P;e�p,that the r.ushion or reserve permitted by RESPA for unanticipated dis6ursemenGs or disburseit:,.n�.s before
<br /> ehe Borrower's payments�re nvailabie in the account may nc�t be based on amounts due for tne rnortgage insurance p[emium.
<br /> If the amounts held by Lender for Fscrow Items excred the a�nounts F,ermitted to be held by RF,SPA, Ixnder shall deal
<br /> with the excess funds as required by RESPA. If the nmoun�af funds held by L,ender at any time are not sufficient to pay the
<br /> Escro«• Items when due, Lender may notify the B�nower stnd cequire Borrower to make ep the shortage or deficieney as
<br /> perniitted by RF,SPA.
<br /> The Fscrow Funds are pledged as additional securyty for �11 sums secured by this Security InsGVment. If Barrawer
<br /> tenders to Lender the full payment of all such sums, BorroWer's account shall be cceditrd widi the balance remaining for all
<br /> installnlent items (a), (b), and (c) and any rnortgage insurance premivan installment that L�ndur hus not become obligateci to
<br /> pay to t;►e Secre�ary,and Lender shall promptly refund any�xcess funds to Borrower. Immediately prior to a f�reclosure sale
<br /> of the Property or its ucquisition by L.enc�er, Borro�er's account shall be crediteti with any bF►lance remainin� for all
<br /> installmPnGs for items(a),(b),and(c).
<br /> 3. Application of F�symenk�. AI!payments under Paragraphs 1 and 2 shall be applied by Gender a�follows•
<br /> FZRST', to the mortgage insurance premium to be paid by Lender to the Secretary or to the: mvnit!ly charge by
<br /> the Secretary instead of the monthly mortgage insurance premium;
<br /> SECOND, to arry taxes, speciul assesaments, leasehold payments or gmund rents, and fi:e, f�ood and other
<br /> nazard insuranre premiums,as required;
<br /> Tf-tlRn,to interest due under the Note;
<br /> FOUK'CH,to amortizarion of the principaf of the Note;
<br /> FfFT;-I,to late charges due under the Note.
<br /> 4. ��ire,Flood and Oiher Hazard Ir�surance. Borrower shaq insure ult im�rovements on the Property, whether now
<br /> ;n existence or subsequent!y erected, against any hazards, casualties, and contingencies, including fire, for which L,ender
<br /> requires insura,�ce. T'his insur.ince shall be maintained in ttie arnounts and for the periods that I.ender reyuires. Boirower
<br /> si�al( also insure ali improvements on the Prop.:rty, whether now in existence or subsequently erectcd, ngainst loss by floods
<br /> to the e:ctent required by the Secretary: All insurance snall be carried with cumpanies approved by Lender. The insurance
<br /> �olicies and any renewais shall be held by Lender and shall include loss payAble clauses in favor of,and in a form aeceptr�ble
<br /> to,Lender.
<br /> In the cvent of loss, Borrower shall give Lender immedidte notice by mail. L,ender may make proof of loss if not made
<br /> prornptly by Borrower. Each insurance:company conr.erned is hereby authorized and directed to malce pa��ment for such loss
<br /> directly to Lender, instead of to Borrower and to Lender joindy. Al! or any part of the insurm�ce proceeds may be applied by
<br /> Lender, at its opt:on, either(a; to the reduction of ttte indebtedness under the Note and this Security Instrument, first to any
<br /> delir:quer,t amoun�s appliecl in thP order in Paragr�ph 3,und then to'Frepay�nent of vrincipal,ur�b)to the restoration or repair
<br /> of'the dacnaged property. Any upplication of the proceeds to the principal shal� nut extend or postpone the due date of the
<br /> monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insuruncc
<br /> pr��ceeds over an arnaunt reyuired to pay aii.outstanding indebtedness under the Note and this Security lnstrument shnll be
<br /> paid to the entity•legally entided d�erete.
<br /> In the event of foreclosure of t4is Securiry lnstrumen: or other transfec of title to the Property that extinguishes the
<br /> indebtedness,al1 right,title and interest of Bnrrower in and t��insi►rance policies in force shall pnss te the purchaser.
<br /> 5. Uccupancy, Preservation, MaIntennnce And �'rotection o[ the Property; I3orrower's Losan� At�pltcation;
<br /> Leaseholds. Borrower shall occupy,establish,and use the Px•o}�erry us Borrower's priflcipal residence within sixty duys after
<br /> the execution of this Securiry Instrument an�i shal} continue to occupy the Fro�rerty s�,s Borrower's principuE r+:sicience for a�
<br /> least one year after the date of occapancy, unless the SP.cretary deternfines thts requirement will eause undue hardship for
<br /> Borrower,or unless extenuating circumstances exist wh;ch are beyond$orrower's contml. Hort�ower shall n�tiFy Jxuden of
<br /> any extenuating circumstances. Borrower shall not ca�tunit wt►.ste�-destroy,damAge or substanually ch:tnge a,c ['roperty or
<br /> a11ow the Property to deteriorate, reasonable wenr and tear excepted. Lender may inspect the Property if die Fropert; i.
<br /> vacunt or abandoned cr the loan is in c�efault. Lender may take rensonnble nction to protect and pceserve such viicunt or
<br /> abandoncd Property. Borrowcr shall ulso be in defuult if Borrvwer,during the loan appLcntion process,gnve mAtervally fulse
<br /> . or inaccurate information or statements to Lender (or €ailed to provide Lender with any rnt►terial informution) in rnnnrction
<br /> with the loan evidenced by the Note, including, but not l�mite� to, represent�uons concerning Borrower's occupuncy of the
<br /> Pr�perty as a prineipai res�dence. lf this 5ecunty Instrument is on a leusehold,Bormwer shall comp)y with the provisions of
<br /> the lease. tf Sorrower ncquires fee tiUe to thie Property,the ler�.sehold und fce dde shall not be merged unless Lender agrees to
<br /> the merger in writing.
<br /> 6. ChArges to Borrower aeui i rotccHon of Lender's �2lghts In the Property. Barrower shnll pny all governrnent��l
<br /> ar municipal charges, tine� and impositions that urc not included in Puragraph 2. Borrowcr �hi�l! pny these ohligutions on
<br /> tirne direct(y t� the entity which iti ouied U�r ���yrnent. 'F failure to pay would E�dversely uffect Lender's interext in thr
<br /> Propert�,upo� [snder's reyuest Borrower shali prc�rtintly fumisli to[.e�der receipts evicJencing thc;e payrnent�.
<br /> If' E3orrowcr fails tc; muke thess: paymencs or the pnyments rcquired by Purugruph 2, or fnil�. ta perform i►ny uthrr
<br /> ce�venants and a�reement5 contained in this Secirrit�+ lnstrumeni, or there is u legui procerding thut mxy significuntly nt'fect
<br /> l�ndrr's righGti in the F'rupCrty (such uc a praceeding in bnnkruptcy, I'or condcrnn�don or to enforce (nws or regulaticmti),
<br /> then L.cnder may do and pay �vhatever is nt�:cssary to Protect thc vAlue of the Property nnd l.cnder's rights in the F'ro�x�i�ty,
<br /> including pi�yment of taxcs,huzard insurunce And other uemv mCntioned in ParaFruph 2.
<br /> Any um��unts disbursed by Ixndcr under this PAragruph shull t�ecome nn ndclitionnl debt uF Borrnwcr and bc serurcd hy
<br /> this ;ecurity Instrument. Thesc amounG9 vhall bear intcrest from the dute of dlsbunement, nt the Note rate, and at the option
<br /> of ixnder,ghnll bc irrun-diutcly duc r.nd pr�yablt.
<br /> i Pugr 1 nj4�xtgra)
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