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<br />g5..w 002601
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />l: 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 inapplicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (h) 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 he held in an institution the deposits or accounts of which are insured or guaranteed by it 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 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 tender. If under paragraph 191he 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 />'.vote: third, to amounts payable under paragraph 2; fourth, to interest due: and last, (o 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 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 :ill notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to 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 Ixuder. (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 flits Security Instrument, Lender may one Borrower a
<br />or notice Identifying the lien. Brower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within (he term "extended coverage" and any other hazards for which Lender
<br />requires insurance. 'Flits insurance shall he maintained in the amounts and for the periods that Lender requires. The
<br />Insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not he
<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 u) Lender
<br />all receipts of pail premiums and renewal notices. In the event of loss, Borrower shall gt\e prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss Wool made promptly by Borrower.
<br />Unit--% 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 Lenders security is not lessened. If the
<br />restoration or repair is riot economically feasible or Lender's security would he lessened, the insurance pro cceds shall be
<br />applied to the surns 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 file insurance carrier has
<br />offered to settle a claim. then tender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by tills Security instrument, whether or not then due. The 30-day per will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not c+stend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. 11'
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to airy insurance policies and proceeds swilling
<br />from damage to the Property prior to the acgtusition shall pass to [ender tri the extent of the suois secured by this Security
<br />Instrument immediately prior to the acquisition
<br />6. Preservalion and Maintenance of Property; Leaseholds. Rorro\vrr shall not desu0y. Jamage or suhst :untally
<br />change the Property. allow the Property to deteriorate or contrnu wasic. If tills secutily I list runteut Is 011 it leasehold.
<br />Borrower shall comply with lite pi-misioni. of the lease, and it Borrowet acquucs Ice title (o the Property. the leasehold :Ind
<br />fee title shall riot merge unless Lender agrees to f tie merger 111 writing.
<br />7. Protection of L.endePs Rights in the Property; Mortgage Insurance. If' Rorrowvr falls l0 pettornl tote
<br />covenants atul agreements contained in flits Sccunly Instrutncni. or there is it legal proceednilt tllat nnay .Iguilivanth :,flirt
<br />I_cndcr °s rights in the Property (such as a pnncedmu in haukruptcy, piohale. fill ,omlcnt Flat iOlt it to enforce k1w, of
<br />regulattons). then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's i tl'hls
<br />in the Property. bender's actions Item Include paving :)ray s111110 selttretl h\ ii hcut which has 11110111) 0\0 tills 1�es:urtty
<br />lnstrunrent, appearing in court, paying reastenahlc attorneys' fern mid enieruag on the 11rol cit) III mike wpaos , llhough
<br />Lender may takeacitou under flits paral ;laph Ienderclties nor lime iodoso
<br />Any aniountsdishtlrscd by Lentier nndei this paragraph "shall lWL-i'lnc additlonal ,10111 0l llorn,wel ser;rtvd I +\ tills
<br />Sftt)rily Irtslrumcttl. Vniess Ki[rower and I_entlet agee to other nouns „1 paA mm�l. thc,0,mwmtt%sh ll licat micw,i iforat
<br />the date -4 disharticutcul 11 the N.le vile .and sh;iil
<br />he pio'lhli. +voh n Irlcsi, ,iprn n, th." Il „m I rn.1a, t., B"n„wet e
<br />fogiiesting paynn'llt
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