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<br />106989
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<br />UNifORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I, Paym.nt of Princ:1pa1 and Interest; Pr....ym.nt and Lat. Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note
<br />1. Funds for Tax.. and Insuranc.. Subjeclto applicable law orto a wriuen waiver by Lender, Borrower shall pay
<br />10 Lender on the day monthly payments are due under Ihe Note, until the Note is paid in full, a s"m ("Funds") equal 10
<br />one. twelfth of: (a) yearly taxes and assessments which may attain priorilY over this SecunlY Instrumenl; (hj yearly
<br />leasehold payment' or ground rents on the Property, if any: (c) yearly hazard inscr..nce 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 />blisis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be beld in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />slale agency (including Lender if Lender is sucb an in:titution). Lender shall apply the Funds tt' pay the escrow items.
<br />Lender may not charge for bolding 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 agreemenl is made or applicable law
<br />requires interest to be paid, Lender sball not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />sball give to Borrower. without charge, an annual accounling oftbe Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds Was mad.. The Funds are pledged as additional security for tbe sums secured by
<br />this Security Instrument.
<br />If the amounl of Ihe Funds beld by Lender, together with the future monthly payments of Funds payable prior to
<br />the due daleS oflhe 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. Ifthe
<br />omount of the Funds held by Lender is not sul6cienlto pay the escrow items wben due, Borrower sha1I 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 to Borrower
<br />any Funds held by Lender. If under paragraph 19 tbe Property is sold or acquired by Lender, Lender sball apply, no later
<br />than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by Lender at the time of
<br />applicalion as a credit against the sums secured by tbis Security Instrument.
<br />3, AppUc:atloa of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragrapbs I and 2 shall be applied: fint, to late charges due under the NOle; second, to prepayment charges due under the
<br />Note; tbird, to amounts payable under paragrapb 2: fourtb, 10 interest due; and last, to principal due.
<br />4. Cbarpa; liens. Borrower sball pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property wbich may attain priority. over this Security Instrument, and leasebold 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 sha1I
<br />pay them on time directly to the penon owed payment. Borrower shall promptly furnisb to Lender all notices of amounts
<br />10 be paid under this paragraph. If Borrower makes these payments directly, Borrower sball promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promplly discbarge any lien wbich bas priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (h) contests in good
<br />faith the lien by, or defends :against enfon:ement of Ibelien in, legal proceedings wbicb in the Lender's opinion opetate to
<br />prevent the enforcement of the lien or forfeiture of any part of tbe PropertY: or (c) secures from the bolder of the lien an
<br />a~t satisfactory to Lender subordinating the lien 10 this Security Instrument. If Lender determines that any pan of
<br />the Property is subject to a lien whicb may attain priority over this Securily Instrument, Lender may give Borrower a
<br />notice identifying tbelien. Borrower sball s:atisfy the lien or take one or more of the actions set forth above witbin 10 days
<br />of the giving ofnotice.
<br />S, HaDnI bIaarance. Borrower sball keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within tbe term "extended coverage" and any other hazards for wbich Lender
<br />requires insurance. This insurance shall be mainlained in thc amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance sball be chosen by Borrower subjecl to Lender's approval whicb sball not be
<br />unreasonably witbbeld.
<br />AU insurance policies and renewals sball be acceptable to Lender and sball include a standard mortgage clause.
<br />Lender aha1I have the right 10 bold the policies and rencwa1s. If Lender requires. Borrower sball promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower sball give prompl notice 10 tbe insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower olherwi&c: agree in writing. insurance proceeds shall be applied to restoration or repair
<br />of the Properly damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If tbe
<br />restoration or repair is not economically feasible or Lender's security would be lessened. Ibe insurance proceeds shall be
<br />applied 10 the sums oa:ured by Ibis Security Instrument, wbether or not then due, with any excess plIid 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 />oll'ered 10 !eltle a claim, then Lender may collcclthe insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or nOlthen due. The.lO-day period will begin
<br />when the notice is gi.en,
<br />. 'rJess Lender and Borrower otherwise agree in writing. any application of proceeds 10 principal sball not extend or
<br />postpone the due date of the monlhly payments referred 10 in paragraphs I and 2 0< change the amount oflhe payments. If
<br />under paragraph 19tbe Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Properly prior 10 the acquisition shall pass to Lender to the ex.enl oflhe sums secured by Ihis Security
<br />Instrument immediately prior to Ibe acquis'lion.
<br />6. PreocnaIloa and MalnlelWlCe of ProperJl'; Leueboldl. Borrower shall not destroy, damage or substantially
<br />change the Properly. allow the Property to deteriorate or commit waste. If this Security Instrumenl is on a leasehold,
<br />Borrower sball comply with tbe provisions oflhe lease. and if Borrower acquires fee title 10 the Properly, the leasehold and
<br />fee litle shall not merge unl... Lender agrees to the merger in writing.
<br />7. ProIeeIIoa of Leader's RJabb In lb. Property; Mortgqe Insurance, If Borrower fails to perform the
<br />covenants and agreements contained in this SecurilY Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's righls in tbe Property (sucb as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), Ihen Lender may do and pay for whatever is necessary to protecllhe value oflhe Property and Lender's rights
<br />in the Property. Lender's actioos may include paying any sums secured by a lien which has priority over this Security
<br />Instrumenl, appearing in court. payinS reasonable allomcys' fees and entering on the Property 10 mike repain. Allhough
<br />Lender may take action under Ihis parasraph 7, Lender does not have to do so.
<br />Any amounlS disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Inllrument. Unless Borrower and Lender agree to olher terms of payment, these amounts shall bear interesl from
<br />the date of disbursement al the Note rate and shill be payable, wtth inlerest, upon notice from Lender 10 Borrower
<br />requestins payment.
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