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<br />88-,'.08231
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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agrce as lollows:
<br />1. Payment of Principal and Interesl; Prepaymen1 and Late Charges, Borrower shall promplly pay when due
<br />the principal oland interest on the debl evidenced by the Note and any prepayment and lale charges doe under the NOle,
<br />Z. Funds for Taxes and Insurance, Subjeclto applicable law 0('10. written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Nole is paid in lull, a sum ("Funds") equal to
<br />one-twelfth 01: (a) yearly taxes and assessments which may attain priority over this Security Instrument, (b) yearly
<br />leasehold payments or ground rents on the Property. il any: (c) yearly hazard insurance premiums: and (d) yearly
<br />mortgnge insumnce premiums, ifany. These items arc called "escrow items," Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of fu~ure escrow items.
<br />The Funds shall be held in an institulion the deposils or accounts of which are insured or guaranteed by a lederal or
<br />stale agency (including Lender il Lender is such an inslilUtion). Lender shall apply the Funds 10 pay the escrow items,
<br />Lender may not charge lor holding and applying the Funds, analyzing the account or verilying the escrow ilems, unless
<br />Lender pays Borrower interesl 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, wilhout charge, an annual accounting oflhe Funds showing credits and debits 10 the Funds and lhe
<br />purpose lor which each debit to the Funds was made. The Funds are pledged as additional security for Ihe sums secured by
<br />Ihis Security Instrument. .
<br />If the amount 01 the Funds held by Lender, togelher wilh the luture monthly paymenls 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 />al Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments 01 Funds. 11 the
<br />amount 01 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 lull 01 all sums secured by Ihis Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. II under paragraph 19the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sale 01 the Property or its acquisition by Lender, any Funds held by Lender at the time 01
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Paymenls. Unless applicable law provides otherwise, all paymenls received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late cbarges due under the Note; second. to prepayment charges due under the
<br />Note; lhird, 10 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 lhis Security Instrument. and leasehold payments or ground rents, il any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or il not paid in lhat manner. Borrower shall
<br />pay Ihem on time directly to the person owed payment, Borrower shall promplly lurnish to Lender all notices 01 amounts
<br />to be paid under this paragraph, II Borrower makes these payments directly, Borrower shall promptly furuish 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing 10 the payment ofthe obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faitb the lien by, or delends against enlorcement of the lien in, legal proceedings wbich in the Lender's opinion operate to
<br />prevent the enlorccmenl ollhe lien or lorleiture of any part 01 the Property: or (c) secures Irom the holder 01 the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If lender detennines that any part of
<br />lhe ProperlY is subjecl to a lien which may allain priority over this Security Instrument, Lender may give Borrower a
<br />notice idenlilying lhelien. Borrower shall satisly the lien or lake one or more of the aClions set forth above within 10 days
<br />ofthe giving of notice.
<br />5, Hazard Insurance. Borrower shall keep the improvements now exisling or hereafter erected on the Property
<br />insured against loss by fire. hazards included wilhin the term "extended coverage" and any olher hazards lor 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 ch~en 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 righlto hold the policies and renew"'s. II Lender requires, Borrower shall promptly give to Lender
<br />all receipts or paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss ilnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair
<br />01 the Property damaged. il the restoration or repair is economically leasible and Lender's security is not lessened, II the
<br />restomtion or repair is not economically feasible or Lender.s security would be lesse!1ed, the insurance proceeds shall be
<br />applied to the sums secured bl' this Securily Instrument, whether or nol then due. wilh any excess paid to Borrower, II
<br />Borrower abandons the Property. or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may collect the insur!lnce proceeds. Lender may use the proceeds to repair or restore
<br />Ihe Property or to pay sums secured by this Security Instrument, w~elher 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 01 proceeds to principal shall not extend or
<br />postpone the due date olthe monthly payments relerrcd to in paragraphs 1 and 2 or change the amount ofthe payments. If
<br />under paragraph 19 the Properly is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />Irom damage to the Property prior to the acquisition shall pass to Lender to the extent ollhe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall nnt destroy, damage or substantially
<br />cbange Ihe Properly, allow the Property to deteriorate or commit waste, If this Security 1nstrumenl is on a leasehold.
<br />Borrower shail comply with lhe provisions ofthe lease. and if Borrower acquires fee title to the Property, the leasehold and
<br />feetitlc shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender'. Rights in the Properly; Morlll8ae Insurance. II Borrower fails to perform the
<br />covenants 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 35 a proceeding in bnnkruptcy, probate. for condemnation or to enforce laws or
<br />regulations). then Lender may do and pay for whatc\'cr is necessary to protect the value of the Property and lender's rights
<br />in tbe Property. Lender.s actions may include paying any sums secured by a lien which has priority over this Security
<br />_nstroment. appearing in court. paying reasonable aUomcys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to do SQ.
<br />Any amounts disbursed by Lender under Ihis paragraph 7 shan become addilional debt of Borrower secured by this
<br />Securily Instrument. Unless Borrower and Lender agree 10 other 1enns of payment, these amounts shall bear interest rrom
<br />Ihe date of disbursemen1 at the Note rate and shall be payable. with inlerest. upon nOlice from Lender to Borrower
<br />requesting payment.
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