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<br />101503
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<br />UNIFORM COVENANTS, Borrower and Lemler covcnant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Lute Charges. Borrower shall prompt]y pay whcn due
<br />the principal of and interest on the debt cvidenced by the Note and any prepayment and latc charges due under the Note,
<br />2. Funds for Taxes and Insunlnce, Subjeclto applicable law or to a \\Tillen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments arc due under the Nute, untillile Note is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessmenls which may attain pf10rity over this Security Instru/nenl; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c} yearly hazard insurancc 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 est imates of fUlllre 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 showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The FUrids 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 wilh the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on 1110nthly payments of Funds, If the
<br />amount of the Funds held by Lender is nol 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 paymenl 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 or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to Ihe sale of the Property or its acquisition by lender, any Funds held by Lender at the time of
<br />apphcation as a crcdit against the sums secured by this Security Instrument.
<br />3. Applitation of Payments. Unless applicable law provides otherwise, all payments received by lender under
<br />paragraphs I 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. 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 shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />10 be paid under Ihis paragraph. If Borrower makes these payments directly. Borrower shaH promptly furnish to lender
<br />receipts evidencing the payments.
<br />Borrower o;hall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees III 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 enforcement 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 dete,mincs that any part of
<br />the Property is subjecl to a lien which may allain priority over this Sf'Curity Instrument, lender may give Borf0wer 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 />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance, This insurance shall be maintained in the amounts and for the periods that lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to lender
<br />all receipts of paid premiums and renewal notices, 111 the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<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 Securily 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 sellle a claim. then Lender may collecl the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay slims 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 I 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 ane: 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, Presenation and Maintenance of Propert)'; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is 011 a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless lender agrees to Ihe merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Bon'ower fails 10 perform the
<br />covenanls and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Pro~rty, Lender's actions may include paying any sums secured by a lien which has priority mw Ihis Sl'Curity
<br />Instrument, appearing in COUr!, paying reasonable attorneys' fees and entering on the Property to makc rcp,IIfS, Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbur'icd by Lender under this paragraph 7 shall become additional debt of Borrowcr s'..'Clm:d by 11m,
<br />Security Instrumenl. Unk~s Horro.....er and Lcnder agree 10 other terms of paymellt. Ihese amounts shall bear IIllcrest from
<br />the e1alc of disburscmcnt at the Nolc rate and shail he paY<lhlc, wllh Illtere'it. upon notKe fl"()m I.ender In Borrower
<br />rt"qucsting p:.ymcnt,
<br />If Lt'ndcr required mortgoge insufUl1I.:e as a conditlOlI of making the loan secured hy IllIs SCl'lInly Inslrument.
<br />BO/ rowcr slHlII pay lhe prcnuums requir(~ to l1lainlain the insuroncc III e1Tl'Ct until such lime as the reqllln'llIen. for the
<br />IflSlIfilnCc tCflllInatcs III ill'l'ludance wilh lIorrower'~ and Lcnder's wnllen lIgfl'CI1l('1I1 (lr al'ph".lbk law
<br />8. In\pl't'llon. I.crulct nr it~ agenl ma)' rnllke reasonable l'lIIrll~ u)lon alllllml'\'rIIPIl~ ", Ihe 1'1"l'l'lt\ 1"lHkr
<br />,hall gll'l' norw.....rr IItHIl'" :tllhe lillle or or prlllt to lln il1~)ll'j,'liOI1 SI>cclfY\ll~n..a\'lIli\hk \;111'" !PI 1 he m~I'\('dh'l\
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