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<br />003276
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<br />UNIFORM COVENA!'ITS. 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 toapplicable law orto a written waiver by Lender, B<lrrowet' silallpa.y
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full; a sum ("Funds';}eq)i8fto
<br />one-twelfth of: (a) yearly taxes and assessments which may attain pri<lrity over this See~rity Instrnmem;'~Yyearly
<br />leasehold paymenls Or ground rertts on the Property, if any; (cjyearly hazard insurance;premrums}mld{d)YearlY
<br />mortgage insuranceprerniums, if any, These items are called "escrow items." Lender' may estimate the Fundsllue Oluhe'-'
<br />basis of currenl data and reasonable estimates offuture escrow items, "
<br />The Funds shall beheld in an institution the deposits or accounts ofwhichare insured or guaranteed oy a fedeial Of'
<br />stale agency (illClnding Lender if Lender is such an institution), ,Lender shall apply theFlIndstopaythe~ro\\,itel\)s;,
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying theescro\Vi~s,lJilI~
<br />Lender pays Borrower interest on the Funds and applicable law penuits Lender to make such a eharge. B9rrOWer/lInd'
<br />Lender may agree in writing that interest shall be paid cn the Funds; Unless an agreement is ll:iadeor applicable-liIw
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or ""mings on the Funds, Lender .
<br />shall give to Borrower, without charge, an annual accounting oftheFunds showing credits and debits to the f'unds 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. s.halJ exceed the amount reauired to ru~v th~ ~r~w it~m5-u,rhen d!ie, the ex!:ess-sha!! be;
<br />at Borrower's option, either promptly repaid to Borrower or ~redited 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 shaUpay to Lendeiafiy
<br />amount neces.<;ary 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 BQiTower
<br />any Funds held by Lender, If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply. no laler
<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 />applicatiOl>aS a credit against the sums secured by lhis Security Instrument.
<br />3. Application of Payments, Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, w late charges due under the Note; second, to prepayment charges due uuderthe.
<br />Note; third, to 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 />Properry wh:ch may attain priority over this Security Instrument, and leasehoid paymentS or ground rents. ii any;
<br />Borrower shall pay these obligations in the ~ner provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay them on time directly to the person OW"" <""ymen!. Borrower shall promptly furnish to Lender all notices of amounts
<br />lobe paid under this paragraph. If Br i'fl'wer makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any !len which has pnonty over this Security Instrument unless Borrower: (a)
<br />agrees 10 wnting 10 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 agalDSI enforcemenl of the !len in, Iogal proceedings whIch in the lender's opinion operate to
<br />prevent the enforcement of the hen or forfetlure of any part of the Property'; or (cJ secures from the holder of the lien an
<br />agreement satisfactory to lender subordmatmg the lien to this Security Instrument. If Lender determines thatany part of
<br />the Property is subject 10 a lien which may aUam priority over thIS Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall sallsf)' the lien or lake one or more of the actions set forth above within 10 days
<br />of the giving of nOllce.
<br />S, Hazard Ill.5urance, Borrower shaJJ keep the Improvements no'" existing or hereafler erected on the Property
<br />insured against loss by fire, hazards !Deluded withinlhe term "extended coverage" and an)' other hazards for which Lender
<br />requires insurance" This Illsurance shall be maintained H1 [he amounts and for the periods that Lender requires. The
<br />msurance carrier prm':lding the insu.rance shall be chosen by Borrow~f subject to Lender's approval which shall not be-
<br />unreasonabl y ...it hheld.
<br />An insurance polIcies and renewals shaH be' acceptabie 10 Lender and shaH lnciude a standard_ mortgage, ciause,
<br />Lender sball have the fight to hold the pobcies and renewals. If Lender reqUires, Borrower shall promplly give to Lender
<br />all receipts of paid premiums and renewal nOllees, In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and lender. Lender may make proof of loss If n01 made promptly by Borrower.
<br />Unless Lender and Borrower otherWIse agree in writmg, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. i( the restoration or repair is economically feasible and Lender's security is nOllessened, If the
<br />restoration or repair is not economically feasible or Lender's secunty would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or nol then due, with any excess paid to Borrower, If
<br />Borrower abandons the Property, or dQ<.'S not answer within .lO days a notice from Lender that the insurance carrier has
<br />offered to sellIe a claim. then Lender may colleclthe insurance proceeds. Lender may use the proceeds to repalf or resLOre
<br />the Property or to pay sums secured by this Security Instrument, whelher or not then due. The 30-day period wiJ! begin
<br />when the notice IS gIVen,
<br />Unless lender and- Borrower -otherwise agree in writing, any applicanon of proceeds to principal shaH not extend or
<br />postpone the due dale of the monthly paymems referred to in paragraphs I and 2 or change the amount of lhe payments, If
<br />under paragraph 19 the Property IS acquired by Lender, Borrowers right to any IIlsurance poliCies and proceeds resulllng
<br />from damage to the ProperlY prior to the acquisition shall pass to Lender to the exlent of the sums secured by this Security
<br />Ins!!uIUe!"H imm~J!ate!y prior to the acquisition.
<br />6. Preservation and Maintenance of Property'; Leaseholds. llorrower shall nOt destroy, damage or substantially
<br />ehange the- Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehuld.
<br />Borrower shall comply With Ihe provtsions of the lease. and If Borrower acquires fee ntle 10 the Propefl)', the leasehold and
<br />fee title shall nOl merge unless lender agrees 10 the merger in writing,
<br />7, Protection of I",nder's Rights in the Property; Mortgage Insurance. If Borrower tails to perform the
<br />covenants fin,d. agreem-ents, contained in this Security In_strumenr, or there is a legal procc,tdlng thai may significantly atfecl
<br />under's rig.hts. in the Property {such a~ a pr~ding in bankruplcy, probate, for .:ondemnation or to enforCe 13\\.'s ~)r
<br />regulatu,lns.). th('u Lendc_f may do and pay for whatever is neces,sary 1f1 protcI;l the \'il.lue oflhe Property and Lender's nght!.
<br />In the. Property, Lender's actious may indude paying any sums ~cured by a lien whj(.h ha~ pn(>f1ty (Wer this Secunty
<br />lmtrument. appearing in court. "''lying reasonable attorneys' fees and clHt:nng on the Properly to rnake rcpalfS. Although
<br />Lender ~y take action under thl' paragraph 7, Lender does not ha"e to do '0,
<br />A.IIY amounh disbursed by' Lender under thlS paragraph 7 shall ~ome addltlOnaI debt of Borrowt;:r ~("urcd by tlus
<br />Sca.."Urity In5:trumctR UnlCJ.a Borrower and Le:ndcr agree to other term~ of raImem, these anHJurH\ shi.-tll bear Hlfi;?-rt'-:.t from
<br />t-be dat.e of d-i$bufsenlenl at the Note fate Clnd shaH.be payable, with mtertsL upon nOlice from LcnJ(:t !t.~ Borrower
<br />teq-rltlg payment.
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