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<br />003411
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<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pay when due
<br />Ihe principal of and interest on Ihe 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 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 laxes and assessments which may attain priority over Ihis 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 peonits Lender to make such" 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 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 I 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 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 Securi. '"strument, and leasehold payments or ground rents, if any,
<br />Borrower shall pay these obligations in the manner prov., _J 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 />to be paid under this paragraph, If B0rrower 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 Lender; (b) contests in good
<br />failh the lien by, or defends against enforcement of tbe lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent Ihe 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, Lender may give Borrower a
<br />notice identifying the lien. Borrower 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 erecled on the Property
<br />insured against loss by fire, hazards included within the teon "extended coverage" and any 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 shaIl be chosen by Borrower subject to Lender's approval which shall nol be
<br />unreasonably withheld.
<br />All insurance policies and renewals shaIl 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 givetoLender
<br />all receipts of paid premiums and renewal notices, In the event of loss, Borrower shall give prompt notice to Ihe insurance
<br />carrier and Lender, Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shaIl be applied to resloration 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 be lessened, the insuranceproceedsshaUbe
<br />aDnlied to the sums secured bv this Securitv Instrument, whether or not then due. with anv 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 settie a claim, then Lender may collect the 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 nOt then due. The 30-day period 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 extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 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 shali 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; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deleriorate or commit waste. If this Security Instrument is on a leasehold;
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Properiy, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />7, Protection of Lender's Rights in the Property; Mortgage Insurance, If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property, Lender's actions may include paying a.flY sums secured by a lien which has priority over this Security
<br />Instrument, appearing 10 court, paying reasonable attorneys' fees and entenng on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does nol have to do so.
<br />Any amoums disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by tblS
<br />Sccurit)' Instrument. Unless Uorrower and Lender agree to other terms of payment, these amouuts shall bear interest from
<br />the date of disbursement at t.he Note fate and shaH be payable. with mlerest. upon notice from Lender to Borrower
<br />requestIng payment.
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