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<br />UNIFORM COVENANTS. Borrower and Lender covennnt and agree as follow~: 88-1 0498 Q
<br />I. Payment oC Prlndpal and Int....t; Prepayment and Lale Charges. Borrower shall promPily pay when "il,',e
<br />,he principal oCand intcr,",t on lhe deb' evidenced by the Note and any prepayment and late eharges due under the Note.
<br />2. Funds Cor Tax.. and Insurance. Subject to applicable law or '0 a written waiver by Lender. Borrower shall pay
<br />to Lender on the rtay monthly payments are due under the Note. until the Note is paid in Cull. a sum ("Funds") equal to
<br />one-twelnh oC: (a) yearly tax,", and ass..sments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Properly. 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 />ba.~is of current data and reasonable estimates offuture escrow ilems.
<br />The Funds shan be held in an institution the deposits or accounts ofwhieh are insured or guaranteed by a federal or
<br />stale 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 lhe Funds. analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interesl on the Funds nnd applicable Jaw permits Lender to make such a charge. Borrower nnd
<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 10 be paid. Lender shall nol 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 Funds are pledged os additional security for the sums ~ecured by
<br />this Security Instrument.
<br />If the amount oC the Funds held by Lender. together with the future monthly payments of Funds payable prior \0
<br />the due dalcs 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 monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient 10 pay the escrow items when due, Borrower :;hall 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 aU sums secured by this Sl."Curity 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 the sale of the Property or its ucquisilion by lender. any Funds held by Lender at the time of
<br />application as a credit against the sums secured by thili Securily Instrument.
<br />3. Application of Payments. Unless applicable law pmvides 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 />Propcrty which may attain priority, over this Security Inslrument. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligalions in the manner provided in paragrnph 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 10 Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower ~halt promptly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shalt promptly discharge any lien which has priority over this Security Instrumenl unless Borrower: (n)
<br />agrees in 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 enforcemenl of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prcvcnlthc cnforr;ement of the lien or forfeiture of any part of the Property; or (c) secures from lhe holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to Ihis Security Jnstrument. If Lender detennines thut an}' port of
<br />the Propeny is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the tien or take one or more of the actions ~et forth above within 10 days
<br />oflhe giving ofnoticc.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erecled on th~ Properly
<br />insured against loss by fire, hazard~ included within the lerm "e...tended coveragc" 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 10 Lender's approval which shalt 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 noticl:S. In the event or loss. Borrower shall give prompt nolice to the insurance
<br />carrier and Lender. Lender may make proofofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to re.'OIOTation 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 reasible or Lender's security would be lc..ssened, lhe insurance proceeds shall be
<br />applied to Ihe sums secured by this Security Instrument, whether or not then due, with nny excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within 30 days a notice from Lender that the insurll~h;e carrier has
<br />offered to seule a claim, then Lender may collect the insurance proceeds. lender may use the proceeds to rl"pair or restore
<br />lhe :'!operty or 10 pay sums secured by this Security Instrument. whether or not then due. The 30.day period will begin
<br />when lhe Dl,~ke is given.
<br />Unless Lende; ~nd Borrower otherwise agree in writing, IIn}' application of proceeds to principal shall not extend or
<br />postpone the due date of1he nll.-:.;:!hly paymenb rererred to in paragraphs I and 2 or change the amount of the paymenls. If
<br />under paragraph 19 the Property is acqUIreD iJ, :"'=~.y.r RorrQwcr'~ right to any insurunce policil..'S nnd proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to i..(;~ric:r to the e;\tent of the sums secured by this Security
<br />Instrument immedialely prior to the acquisition,
<br />6. Preservation and 1\laintenam:e orPropertYi Leaseholds. Borrowel ..hull not destroy, damage or substanlially
<br />change the Property. allow the Property to deteriorate or commit waste. If Ihis :..curity Instrument is on a leasehold,
<br />'RoTTov..er shall comply with the provisions orthe lease. and if Borrower acquires fce lith.: to the Property, the leasehold and
<br />fee title shall not merge unless lender agrees to lhe merger in writing.
<br />'7. Protection 01 Lender's Rights in the Property; Mortgage Insurance. If Bon L'wcr fails 10 perform the
<br />covenanlFo and agreements contained in this Security Instrument, or there i~ a legal proceeding thut l';"UY significantly affect
<br />lender's rights in the Propcny (such as a proceeding in bankruptcy. probate. for condemnation or \.:' enforce law!'. or
<br />regulations). then lender may do and pay for whatever is necessary to protect Ihe value orlhe Property and Lt~dcr'~ right!;
<br />in the Property. lender's actions may include paying any sums secured by a lien which ha~ priorily over 1111~ ~'H;':~lril)'
<br />Instrument, appearing in court, paying reasonable attorneys' fee!. and cOIering on the Properly 10 make n:pUlf'o. Although
<br />Lcndermay take action under this paragraph i, Lender does nol ha\'e (0 do so.
<br />Any amounts disbursed by Lender under this paragrnph 7 shall ~ome additional debt of [)lIrmwer ,c..:ureJ h~ Ihl'
<br />Security Instrument. Unless Borrower and Lender agree to other term' of pay men I. thc~e lJmounl.. ,11<111 hcal' mlcn.." fWIlI
<br />the date or dbbunc:ment al the Note rale llnd shall he payable. ".ltll ilill'r~t. upon n~IIIC't: frolll Ll."IIJCI h' Bllrftl\\"l'r
<br />requc:51ing (laymen..
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