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<br /> . COVENANTS. Borrowers and Lenrfer covonant and agree as follows: ^�_ �t t�.��3 I L
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<br /> ' 1. Payment of Prinaipal and Interest; Prepayment and Late Chargea. Borrowers shall � `. "
<br /> promptly pay when due the princfpal of and interest on tha debt evfdenced by the Note and any
<br /> prepaymant and lata charges due under the Note.
<br /> �': .� 2. Funds for Taxes and Insurance. Subject to applicabte law or to a written waiver by , . .
<br /> --�• Lander, Bor�owers shall pay to tha proper authoritfes whan due(e) yearly taxes and assessments which
<br /> �� may attain prfarity over this Security Instrument; (b)year�y leasehold payments or ground rents an the + ,...
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<br /> Property,if any;(c)yearly hazard insurance premiums;and(d) yearly mortgage insurance premiums, if any. " _:���;;�:_
<br /> If the raquired payments are not made, Borrowers shall pay to Lender any amount necessary ta make up � •tiK,��__
<br /> the deficiency in one or more payments as required by Lender. .;,,.=•.'�;:_- _
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<br /> � 3. Charges; Liens. Borrowers shall pay all taxes, ass�ssments, charges, fines, and `":;-;,
<br /> , impoaitions attributable to the Property which may attain priority over this Security Instrument and
<br /> Ieasehold payments or ground rents,if any. Borrowers shall pay these obligations in tha manner provided :=:�;
<br /> in paragrapti 2,or if not paid in that manner, Borrowers shall pay them on time directly to the person owed .•�r°, '��`°-
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<br /> payment. Borrowers shall promptly fumish to Lender all notices of amounts to be paid under this �"►x,�ii_.
<br /> paragraph. If Borrowers make these payments directty,Bnrrowers shall promptly furnish to Lender receipts :,•�r-;
<br /> evidencing the payments. :•�:r��
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<br /> Borrowers shall promptly discharge any lien which has priority over this Security Instrument unless . '��
<br /> ti Borrawers:(a)agree in writing to the payment of the abligation secured by the Ilen in a manner acceptablo x+�•�
<br /> to Lender; (b) contest in good faith the lien by, or defend against enforcement of the lien in, legal ��''"
<br /> �� proceedings which in the Lender opinion operate xo prevent the enforcement of the lien or forfeiture of any r:_{�t��
<br /> .` part of the Property; or (c) secure from the holder of the lien an agreement satisfactory to Lender -.-
<br /> � subordinating the tien to this Security Instrument. If Lender determines that any part of the Property is ;�!
<br /> y subjact to a lien which may attain priority over thia Security Instrument, Lender may give Borrowers a �--
<br /> � notice identifying the lien. Borrowers sha01 satisfy the lien or take one or more of tha actions set forth �y_�
<br /> above within ten (10) days of the giving of notice. _-
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<br /> � 4. Hazard Insurance. Borrowers shall keep the improvements now existing or hereafter �
<br /> � erected on the Property fnsured against loss byfire,hazards included within the term "extended coverage" ��=
<br /> • � and any other hazards for which Lender requires insurance. This insurance shall be maintained in the �-; -_
<br /> amounts and for the periods that Lender requfres. The insurence carrier providing the insurance shall be �-••
<br /> t� chosen by Borrowers subject to Lender approval which shall not be unreasonably withheld. _ ��_
<br /> �� All insurance polfcies and renewals shall bo acceptable to Lender and shall include a standard
<br /> mortgage clause. Lender shall have tho right to hold the policies and renewals. If Lender requires, :.�.»_-
<br /> �; Bo►rowers shail promptly give to Lender all receipts of paid premiums and renewal notices. In the event _.
<br /> r� of loss, Borrowers shall give prompt notice to the insurance carrier and Lender. Lender may make proof _
<br /> *• of loss if not made promptly by Borrowers. —
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<br /> � Unless Lender and Borrowers otherwise agree in writing, insurance proceeds shall be applied to � ..---�—
<br /> �� restoration or repair of the Property damaged, if the restoration or repair is economically feasible and
<br /> 'k Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's
<br /> ;�° security would be lessened, the insurance proceeds shall be applied to the sums secured by this Securlty :_�
<br /> Instrument, whethar or not then due, with any excess paid to Borrowers. If Borrowers abandon the _.__
<br /> . Property or do not answer within thirty (30) days a notfce from Lender that the insurance carrier has -
<br /> '' offered to settle a claim,then Lender may collect the insurance proceeds. Lender may use the proceeds - ___
<br /> to repair or restore the Property or to pay sums secured by this Security Instrument,whether or not then �"�'�"—=-°'
<br /> due. The thirty(30)day period will begin when the notice is given. Y ���
<br /> Unless Lender and Borrowers otherwlse a ree in writin ,any application of roceeds to princi al �� �
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<br /> shall not extend or postpone the due date of the yearly payments referred to in paragraphs 1 and 2 or • :'=� '• ;
<br /> � change the amount of the payments. If under paragraph 18 the Property is acquired by Lender, Borrowers' �''``, �' �`-,a?:-���� �
<br /> right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition ��`-��
<br /> shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the -
<br /> Iacquisition. '�
<br /> � 6. Preservation and Maintenance of Property; Leaseholds. Borrowers shall not destroy,
<br /> ; damage or substantially change the Property, allow the Property to deteriorata or commit waste. If this
<br /> ' � 5ecurity Instrument is on a leasehold,Borrowers shall comply with the provisions of the lease, and if
<br /> � Borrowers acquire fee title to the Property, the Isasehold and fee title shall not merge unless Lender agree I
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<br /> 6. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrowers fail to �
<br />_ perform the covenants and agreements contained in this Security Instrument or there is a lagal proceeding �
<br /> that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate,
<br /> for condemnation ar to enforce laws or regulationsl, then Lender may do and pay for whatever is necessary �
<br /> to protect the value of the Property and Lenddr's rights in the Property. Lender's actians may include �
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