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<br />UNIFORM COVENA:-ITS. 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
<br />.the principal of and interest on the debt evidenced by the NOle and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or 10 a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the NOle. 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 Instrurnent: (b) yearly
<br />leasehold payments 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 of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including 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 />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. 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. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds shO\,;ng credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together \l.ith the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall e_l(ceed the amount required to pay the escrow items when due, the e.l(cess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly pa}ments 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 to 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 '0 Borrower
<br />any Funds held by Lender. If l,"der paragraph 19 the Property is sold or :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 Se<:urity Instrument.
<br />J. Application of Payments. Unless applicable law pro,;des otheT\l.ise. all payments recei,'ed by lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepa}ment charges due under the
<br />Note; third, to amounts payable under paragraph 2: fourth, to interest due; and last, to principal due.
<br />4. Charges; 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 shaH pay these obligations in the manner prO\ided in paragraph 2, or ifnol paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. &rl'Ower sball pmmptly furnish to Lender all notices of amounts
<br />to be paid under Ihis paragraph. If Borrower makes these payments directly, &rrower shall prompt I}" furnish 10 lender
<br />receipts e,idencing the pa)"Illents.
<br />Borrower shall promptly discharge any lien which has priority o'-er this Security Instrument unless Borrower: (a)
<br />agrees in writing to Ihe payment of the obligation secured by the lien in a manner 3<<qllable to lender.: (b) rontests in good
<br />faith tbe lien by, or defends against enforcemenl of tbe lien in.1egaJ proceedings which in the lender's opinion operate to
<br />prevent the enforcement of the lien or fotfeiture of 3DY part of tbe Pmperty; or (c) secures fmm the holder of the lien an
<br />agreement salisfactory to Lender subordinating the lien to Ihis Security Instrument. If lender determines that any part of
<br />the Property is subject to a lien which may attain priorit}" O\'er this Security Instrumenl, lender may gi\'e Borrower a
<br />notice identifying the iien. Borrower shall satisfy the lien or take one or more oflhe actions set forth abow \l.ithin 10 da}"S
<br />of Ihe gi,ing of notice.
<br />S. Hazard Insurance. &rrower shall keep the impflwements now e.~isting or here.iller erected on the Propeny
<br />insured against loss b)' fire, hazards included uiihin Ihe term "extended <<we rage'" and any OIher hazard~ for which lender
<br />requires insurance. This insurance shall be maintained in the amounts and fOJ: the periods thai lender requires.. The
<br />insurance carrier prO\;ding the insurance shall be chosen by Borrower subject to Lenders appro''3I which shall not be
<br />unreasonably \l.;thheld.
<br />All insurance policies and renewals shall be aoceptable to lender and shall include a slandard I1l(>rtgage cIatL'<e.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires.. Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices. In Ihe e"ent of loss., Borrower shall giw prompt notice to the insur.m~-.:
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by &rrower.
<br />Unless Lender and Borrower otheT\l.ise agree in writing, insurance proceeds shall be applied to re:!otor,llion or rep3ir
<br />of the Propert}, damaged. if the restoration or repair is economicall}' feasible and Lender's ~urity is oN lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be 1e\,'So(1Ied, the insurance pro..-eeds sh3l1 be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any ex..-ess J"3.id to Borrower, If
<br />Borrower abandons tbe Property, or does not answer l\ithin JO da}"S a notice from lender that the insuran~-.: carrier has
<br />olTered to settle a claim, then Lender may collect the insurance proceeds, Lender ma}' use the IUo..-eeds to ref'3ir or re:!otore
<br />the Property or to pay sums secured by this Security Inslrument, whether or not then due. The .m-day peril>d 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 extcnd ~'r
<br />postpone the due date of the monthl~' payments referred to in paragraphs I and .2 or change the amount <'fthe p.;l}TIlenls. If
<br />under paragraph 19 the Property is acquired by lender, Borrowers right to any insurance polici<'S and pn>ce...ds re:s.ulting
<br />from damage 10 the Property prior to the acquisition shall pass to Lender to the extent ofthe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Propert).; Leaseholds. Borrower shall nPl de:s.troy. damage or subs:antially
<br />change the Propeny. allow the Property to deteriorate or commil waste, If this Security Instrument is l'n a leasehold.
<br />Borrower shall comply with the provisions of the leal-e. and if Borrower acquires fe-e title to the Pwperty. the "..asehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7, Protection of Lender's Rights in the Propert).; ~Iortgage Insurance. If Borrow..-r f3lls '" perfornl the
<br />co\'enants and agreements contained in Ihis Security Instrument. or there is a legal proceeding that may signiticantly alf~1
<br />Lender's rights in the Property (such as a proCt.'cding in bankruptcy. probate. for condemnation l'r to enfim..... laws or
<br />regulations). then Lender may do and pay for whatner is 1lC\.'eSS3ry to protect the valu... ofth...l'roperty and l...nder', rights
<br />in the Property. Lender's actions may include paying an}' sums secured by a h...n which has priority ,'wr this St.-.:urity
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering l'n th...l'roperty 10 mak... r"'palf'.. Although
<br />Lender may take aclion under this paragraph 7. Lender does not have to do so.
<br />An}' amounts disbursed by Lender under this paragraph 7 shall become additIonal d...bl "f B<'rwwer 'e..'ur~'d hy Ihl'
<br />Security Instrument. Unless Borrower and Lender agree to other lemlS ofpaymem, Ih...", anll'lInl' ,halll>ear IIIlcr...,1 fwm
<br />the date of disbursement al Ihe Note rat... and ,hall be payahle, ,nth mt...r""t. "I,,'n I,,'IK,' fc.'m t...nd...r to B,',c.'\H'r
<br />requesting paymenl.
<br />If lender reqUITed rnorlgag... msuralll"e as a condilion of makmg Ihe loan Sl-cur,"t.l by Ihl\. S~""lInly Inslrurn...nl.
<br />1J0rrow...r ,hall ray the I'rcnllum, "'<jUlred to mamtatn Ihe lIl,ma'K'" III elTcel unlll ,udltlllle a, Ih... r~'q\lln'ml'nt f{lf Ih...
<br />in,uralKc It'rIIun,,lc, III an'onlanc... WIth Borrow...r\ and lcndc,\ \Hlllen agr,'cmenl ,Ir "!,phcahk law
<br />8. In\pt'ction. Il"IHler or U, agcntlllay makc rea\onahlc ...nlll<" upon and In'I,,-'<"III'n, ,'I' 11ll" I'ro'I"-"I\ I ,'n,1.-1
<br />,hall !!I\C Bouowl'T nolln' .lllhc Inlle of or pnor 10 an lIl'peCIH'" '(>enf) Ill!! r"'''"lIahk ,'all'l'l;" II". "1\1"-'<"1\<'11
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