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<br />UNIFORM COVENANTS. Borrower and Lender covenant ol1d agree as follows: B8-
<br />1, Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pay wh'ln due the
<br />principal of and Interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for TaKes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender
<br />on the day monthly payments are due under the Note, until the Note Is paid In full, a sum ("Funds") equal to one-twelfth of: (a) yearly
<br />taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the
<br />Property, If and: (c) yearly hazard Insurance premiums: and (d) yearly mortgage Insurance promlums, II any. The items are called "escrow
<br />items," lender may esllmate the Funds due on the basis of current data and reasonable est1mates of future escrow items.
<br />The Funds shall be held In an Instllutlon the deposits or accounts of which are Insured or quaranteed by a federal or state agency
<br />(Including lender If lender is such an Instltullon). lender shall apply the Funds to pay the escrow Items. lender may not charge for hold,
<br />Ing and applying the Funds, analyzing the account or ,jerifylng the escrow Items, unless Lender pays Borrower Interest on the Funds and
<br />appllcablo law permils Lender to make suoh a oharge, Borrower and Lender may agrcp. In writIng that Inlerest shall be paid on the Funds,
<br />Unless an agreement Is mado or appllcable law requires Interest to be paid, Lender shall not be required 10 pay Borrower any Illterest or
<br />earnings on the Funds, Lender shall give to Borrower, wllhout charge, an annual accounting of the Funds showing credits and debits to
<br />the Funds and the purpose lor whIch each debIt to the Funds was made. The Funds arc pledged 8S additional security for the sums
<br />secured by thIs Security Inst/1..lment.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the
<br />esorow items, shall exceed the amount required to p<:y the escrow items when due, the excess shall be. at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount 01 the Funds held by lender is not
<br />sufficient to pay the escrow Items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or
<br />more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund 10 Borrower any Funds held by
<br />Lender. If under paragraph 19 the Property Is sold or acquired by Lender, Lender shall apply, no later than Immedlalely prIor to the sale
<br />of the Properly or Its acquIsition by lender, any Funds held by lender at the time 01 application as a credit against the sums secured by
<br />this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides othelWise. all payments received by Lender under paragraphs 1
<br />and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, 10 amounts
<br />payable under paragraph 2; fourth, to interest due; and last. to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, firms and Impositions attributable to the Property which
<br />may attain priority over this Security Inst/1..lment, and leasehold payments or ground rents, if any, Borrower shall pay these obligations in
<br />the manner provided In paragraph 2, or if not paid In that manner, Borrower shall pay them on time directly to the person owed payment,
<br />Borrower shall promptly furnish to the Lender all notices 01 amounts to be paid under Ihis paragraph. If Borrower makes these payments
<br />directly, Borrower shall promptly hJrnlsh to Lender receipls evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Insl'llment unless i3orrower: (a) agrees in writing to the
<br />payment of the obligation secured by Ihe lien in a manner acceptable to Lenoer: (b) contests In good failh the lien by, or defends against
<br />enforcement 01 the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement 01 the lien or lorieiture of
<br />any part 01 the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien 10 this Security
<br />Instrument. II Lender determInes that any part of the Property Is subject to a lien which may attaIn priority over this Security Instrument,
<br />Lender may give Barrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above
<br />within 10 days of the giving 01 notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
<br />loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. ThIs
<br />insurance shall be maintained In the amounts and for the periods that Lender requires. The Insurance carrier providing the insurance shall
<br />be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to the Lender and shall include a slandard mortgage clause. Lender shall have
<br />the right to hold the policies and renewals. If Lender requires, Borrower shall prompl1y give to Lender all receipts 01 paid premiums ar,d
<br />renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />los5 if not made promptly by Borrower.
<br />Unless Lender and Borrower othelWise agree in writing, Insurance proceeds shall be applied to restoration or repair of the Property
<br />damaged, il Ihe restoration or repair is economically feasible and Lender's security is not lessened. II the restoralion or repair is not econ-
<br />omically feasible or Lender's security would be lessened, the insurance proee.eds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, wilh any excess paId to Borrower. If Borrower abandons the Property. or does not answer within 30
<br />days a notice from Lender thaI the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds, Lender
<br />may use the proceeds to repair or restore the Properly or to pay sums secured by this Security Instrument, whether or nol then due. The
<br />3o-day period wUl begin when the notice Is given.
<br />Unless Lender and Borrower oihelWise agree In writing, any application of proceeds to principal shall not extend or postpone the due
<br />date of the monthly payments referred to in paragraph 1 and 2 or change the amount of the payments. If under paragraph 19 the Property
<br />is acquired by Lender, Borrower's right to any insurance policies and proceeds resultiflg from damage to the Properly prior to the acquis,
<br />itlon shall pass to Lender to the extent of the sums by this Security Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially chan[le
<br />the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall comply with
<br />the provisions of the lease. and if Borrower acquIres lee title to the Properly. the leasehold and fee title shall not merge unless the Lender
<br />agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. II Borrower fails to pertorrn the covenants
<br />and agreemeflts contained in this Security Instrument, or there is a legal proceeding that may sIgnificantly affect the Lender's right in the
<br />Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or regulations), then Lender may do and pay
<br />for whatever Is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any
<br />sums secured by a lien which has prlority over this Security Instrumant, appearing in courl, paying reasonable attorneys' lees and entering
<br />on the Property to make repairs. Although Lender may take action under paragraph 7, Lender does not have to do 50,
<br />Any amounts disbursed by lender under paragraph 7 shall become additional debt of Borrower secured by this Security Instrument.
<br />Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from date of disbursement at the Note
<br />. rate and shaU be payable, upon nolice from Lender to Borrower requesling paymc-nt.
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<br />* "A charge assessed by Lender in connection with Borrower's entering into this Security
<br />Instrument to pay the cost of an independent tax reporting service shall not be a charge
<br />for purposes of the preceeding sentence." -} ~
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