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<br />06 - 100256
<br />UNIFOttst Ctwt=.NAN rs Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest; Prepayment and Late 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 />2. Funds for Taxes and Insurance. Subject to applicable law or to a writtc:: t.. %c r by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid i,, full, a sum ( "Funds ") equal to
<br />one - twelfth of: (a) yearly lazes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the PropeRy, 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 />basis of current data and reasonable estimates of future 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 />shall apply the Funds to pay the escrow items.
<br />state agency (including Lender if Lender is such an institution). Lender
<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 Funds are pledi<;ed as additional security for the sums secured by
<br />this Security instrument.
<br />if the amount of the Funds held by Lender, together with 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 monthly payments of Funds. If the
<br />amount of 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 ttie deficiency in one or more payments as required by Lender.
<br />Upon payment in fuN 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 the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and'-) shall be applied: first, to amounts payable under paragraph 2; second, to interest
<br />due; and last. to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, lines 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 />ragraph. If Borrower makes these payments directly• Borrower shall promptly furnish to Lender
<br />to be paid under this pa
<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 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 (_) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property 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 lien or take one or more of tile actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements r w existing or hereafter erected on the Property
<br />insured against loss by tire, hazards included within the term "extended c wcrage" and ally 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 he chosen by Borrower subject io 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. In the event of (oss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss 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 he lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security 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 settle a claim, then Lender may collect ,lie insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pav sums secured by this Security Instrument, whether or not then due. I'he 30 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds tot principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and _' 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 and 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. Preservation and `Maintenance of Property; I.easehulds. Borrower shall not dcstn y. damage or suhsauitt.dly
<br />change the Property, allow the Propcity to deteriorate or commit waste if ibis Security Instrument a nn a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acgwres tee title to the Property, the leasehold and
<br />fee title %hall not merge unless Lendcr agrees to the merger in writing.
<br />7. Pruteetion of Lender's flights in the Property; Mortgage Insurance. If Bonower fails to perform the
<br />covenants and agreements contained nt this Security Instrument, or there Is a legal proccedmg that niay significantly affect
<br />o versa t rights r rile Pn,ptrrty (such as a proceeding tit bankruptcy, probate. for condenuuition or to enforce laws or
<br />regulations), then Lendcr may do and pay for whatever is necessary to protect the %;title nl the lhoperty and Lcuder's right,
<br />In the Property lender's actions may Include paying any sums secured by a 1!cn winch has pnonry over this Secwrty
<br />Fa
<br />Instrurnrnt, allpx.anng nt court, tmyucg rowo !able attorncps' fees mid entcIllig on the Properiv to make rcp:urs ,Nithcnihh
<br />bender may take acnou undcv this p:n ay,rtph Lender does not have to do su
<br />Arty anu,ususdishurscd by Lcndcf it.
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