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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and lateral; 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 />1. Fund for Taxes aad Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />j to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
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<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, 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 />state 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 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 pledged 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 tip 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 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 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 principai due.
<br />4. Chiirgim Liras. Borrower shall pay all taxes, assessments, charges, fines 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 Ihat 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 />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish In 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 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 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 (c) 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, Lcnder may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more ofthe actions set forth ahovc within 10 days
<br />of the giving of notice.
<br />S. Hartird lasurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and tilt the pkrnxls that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Nirrower 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 right to !told 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 loss, Borrower .shall give prompt notice to the insurance
<br />carrier aad !.ender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or reptar
<br />of the Property damaged, if the restoration or repair is economically feasihh: and Lender's security is not lessened. If the
<br />restoration tr repair is not economically feasible or Lender's security would be icsseried, the insurance proceeds shall he
<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 />oftred to settle a claim, then Lcnder may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to prey sums secured by this Security instrument, whether or not then due. The 30•day period will begin
<br />when Ile notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. any application of pro cceols to principal shall not extend or
<br />postpone the due date of the monthly payments referred to fn paragraphs I and 2 tit 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 estenl of the wins secured by this 5ectimy
<br />instrument immediately prior to the acquisition.
<br />i. Preservatlom sad Maiatmwe of Property; i,easeholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property In deteriorate or commit waste. If this Securnv Instrtunent is on it leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires Ice title I.. the Property, the leasehold and
<br />fectttle shall not merge unless lender agrees to the merger in writing.
<br />7. Protectiom of Lender's ltip(!►ht in the Property; Mortgage insurance, If Ilorrowcr Bails to perform the
<br />coventorii s and agreements contained in this Sci urity Instrument, or iltere 1s a legal litmeet ing i hat Inay significantly affect
<br />I i s tight% in the Property (such as a proceeding to bankruptcy, probate, for condemnation or to enforce laws err
<br />replulatnns), then Lender may dot and pay for whatever i% necessary to protect the value ot'the Property and Lender's riphis
<br />in the Property, lender's actions may include paying any wins secured by a lien which has ptiorii% over this Security
<br />In"rurnent, appeating III coat, paying reaseutahle attorneys' fees and entering on the I'rolvttd to make iepatt% Althotigh
<br />t_coder may take action under this paragraph 7, Lender doles not have to dta so
<br />Any amdotunts disbursed by I.emder mlder this ItatagrNph 7 shall become additional debt 11 Borro %er %o, utedd by plus
<br />'tufty InWiment. I. unless llo ttrower and Lender agree to other tetra %,1f pily'oIC01, She %e att111111t1 %.hail IVAt 1111eles1 t'r11n1
<br />the Irate (4 41191s411'writent at the N"Ie into and %hall IV pavallle, with ttth"TeNt. i);1011 III11hT PIOM I , n/lrl N1 114111 %Vt a
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