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<br />004017
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal and Interest; Prepa)'ment and Late Charges, Borrower shall promptly pay when due
<br />the principal of andinlerest 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 written waiver by Lender, BorroWer shall pay
<br />to Lender on the day monthly payments are due under Ihe Note, utitil 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 Instrurnent; (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 offuture 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. thees~r~w itellls.
<br />Lender may not charge for holding and applying the Funds, analyzing!he account or verifyingtheescrowitellls,ut\less
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender 10. makesuchacharge,Borro\\'erand
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicableJaw
<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 oftheFunds 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 securityfonhesums secured by
<br />this Securily 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 crediled to Borrower on monthly payments of Funds; If the
<br />amount of the Funds held by Lender is not sufficient 10 pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up th~ :1eficiency in one or more payments as required by -Lender.
<br />Upon payment in fuli 01 all sums secured by this Security Instrument, Lender shall promptly refuml 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 undenhe'
<br />Note; third, to amounts payable under paragraph 2; fourth. 10 interest due; and last, to principal due,
<br />4. Cnarges; Liens. Borrower shaH pay ali taxes. assessments. charges. fines and.impositions attributable-to'the_
<br />Property which may anain 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 -. or if not paid in that manner; Borrower shaU
<br />pay them on time directly to the person owed payment. Bbrrower shall p' C.lptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower mMes the 'ayments 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 />faith the lien by, or defends against enrorcement of the lien .n, 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 Ihe 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 lhe 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 wHhlO the term "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 />insur:mce carrier providmg the insurance shall be chosen by Borrower subjecl 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 clallS<l,
<br />Lender shall have the right to hold the poliCIes and renewals. If Lender requires, Borrower shall promptly give 10. Lender
<br />all receipts of paid ptemiums and renewal notices. In the event of loss.. Borrower shall give prompt notice, to the insurance
<br />carrier and Lender, Lender may make proof of loss ifMt made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or, repair
<br />of tbe Property damaged. if the restoralion or repair is economically feasible and Lender's security is nOllessened, If the
<br />restoration or repair is nOI economIcally feasible or Lender's security would be lessened. the illSurance proceeds shall be
<br />applied to the sums secured by this Se.:u:ity [nstrument. whether or not then due, wilh 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 sellle a claIm. then Lender may collect the insurance proceeds, Lender may use the proceeds to repair or restore
<br />the Properly or to pay sums secured by this Security Instrumenl, whether or not then due. The 3o-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwIse agree In writing. any appllcauon of proceeds to principal shall not extend or
<br />postpone the due dale of the monthly payments referred to In paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 tbe Property is acquired by Lender, Borrower's right to any IOsurance 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 Securlly
<br />Instrument immediately prior to the acquisition.
<br />6, Preservation and Mainteoanee of Property; Leasebolds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste, If Ihis Secunty Instrument is on a leasehold,
<br />Borrower shall comply with Ihe pnwisions oflhe lease, and if Borrower acqUires fee title fO the Property, the.leasehold and
<br />fee titleshaU not nlerge unless Lender agrees to the merger in wntlng,
<br />7, Protection or Lender's Rights in the Property: Mortgage Insurance, [f Borrower fails to perform the
<br />COVenants and agreemenl> conta.ned in this Se.:unty [nstrument, or there is a legal proceeding that may significantly affect
<br />Lender', oghts In the Property (such as a proceeding in bankruptcy, prohate, for condemnation or 10 enforce laws or
<br />regulauoos), then lender may do and pay for whatever is nC<'essary 10 protect the .-alue of the p,,'perty and Lender'> nghts
<br />'n the Property. Lender's actions may include paying any sums secured by a hen wh,ch hll' prlOoly (Wer thIS Security
<br />Instrument, appearing in court, pay'ing reasonable aflomey's fees and enleong on the Property to make repairs. Allhough
<br />Lender may take ac'ion under ,his paragraph 7, Lender does nol have to do so.
<br />Any amounts dll\hursed by Lender under th.. paragraph 7 sbaH bewme addulo".1 deb, of Borrower ;ecured by thIs
<br />So:Urll)' Ins.tnut\ent Unleu Borrower and lender agr<< to other term~ of payment. these at1\ount'!; shull bear Ill1ere.Sl from
<br />tbe dau of dlSbu_I~t\ent at tbe Nl1-tt ratt and !!<haiJ hoe payable. with HUer~1. up,,-n llotH.:(' from lender tl) Borrnw(,f
<br />'CllUelitlD& payment
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