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UN1FORM COVENAtvTS. 8orrower and Lender covenant and agrce as follows:
l. Payrxet of Prl~tipal aad Istues~ Prep?ymeat aad Late Char~es. Borrower shall promptly pay when due
the principal of and interest on the debt evidenad by the Note xnd any prepsyment and tate charges duc under the Note. ~
2. F~nd~ tor Taxe~ ~d I,~wraace. Subjoct to applicabk law or to a written waiver by Lender, Borrower shall pay
to Lcnder on the day monthly paymtnts are due under the Note. until the Note is paid in full, a sum ("Funds") equa! to
ono-twelfth af (a) yearly ta~ces and asse.ssments which may attain priority over tAis Socurity lnstrument; (b) yearly
kasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurana premiums, if any. These items are callod "escrow items." I.ender may estimate the Funds due on the
basis of current data and reasonable esticnates of futurc escrow items.
The Fu~ds shall be held in an institution the deposits or socounts oC vrhich are insured or guaranteed by a fedcral ar
state agency (including Lender if Lrnder is such an institution). Lender shall apply the Funds to pay the escrow items.
Lender may not charge for holding snd applying the Funds, analyzing the acxount or verifying the escrow items. unless
L.ender pays Borrower interat on the Funds and applicablt law permits Lender to make such a charge. Bonower and
Lender may agret in writing that intenxt~ stiall be paid on the Funds. Unlesc an agreemrnt is made or applicable law
rcquires interest to be paid, Lrnder shall not be raquirod to pay Borrower any interest or earnings on the Fund~. I.ender ~
shall give to Borrowtr, without charge, an annual accounting of the Funds showing crodits and dcbits to thc Funds and the ~
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums sccured by
this Security Instrument. ~
If the amount of the Funds held by Lender. tagether with the future monthly payments of Funds payable prior to
the due dates of the escrow items, shall eacood the amount rcc~uired to pay the escrow items when due, the excess shall be,
at Borrower's option. either promptly npaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds htld by I.ender is not su~'icient to pay the escmw items when due, Borrower shall pay to l.ender any
amount necessary to make up the deficiency in one or more payments as required by Lender. -
Upon payment in full of all sums secured by this Security Instrument, Lender shall prompily refund to Borrower
any Fands hdd by Ltnder. If under paragraph 19 the Property is sold or acquired by Lender, I.,ender shall apply, no later ~
than immediately pripr to the sale of the Property or its acquisiiian by Lender, any Funds held by I.ender at the time of ~
application as a credit against the sums secured by this Sxurity Instrument.
3. Application of Payments. Unless applicable law provides otherwise, atl payments received by Lender under
paragraphs 1 and 2 shail be applied: 6rst, to iate charges due under the Notc; second, to prepaymeai charges due under the
Note; third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Clurgex Liens. Borrower shall pay all ta~ces, assessments, charges, fines and impositions attributable to the
Property which ma} attain priority over this Socurity Instrument, and leasehold payments or ground rents. if any.
Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Bonower shall promptly furnish to I.ender all notices of amounts
to be pa.id under this paragraph. If Borrower makes ~hese payments directly, Borrower shall promptty furnish to Lender
rectipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligation securod by tho lien in a manner acczptable to Lender; (b) contests in good
faith the lien by, or defends against rnforcement of the lien in, tegat proccedings which in the Lender's opinion operate to
prevent the enforcement of the iien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
agrcemtnt satisfactory to Lender subordinating the Gen to this Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Security Instrument, I.ender may give Bonower a
notice identifying the lirn. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
~ of the giving of notice.
S. Nat~rd Iosurance. Borrower sha11 keep the improvements now existing or hereafter erected an the Property
insured against loss by 5re, hazards included within the term "extended wverage" and any other hazards for which I.ender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance c,~rrier providing ihe insurance shall be chosen by Borrower subject to I..ender's approval which shal! not be
unreasonably withheld.
All insurance policies and renewals shatl be acceptable to Lender and shall include a standard mortgage clause.
Len~er shal! 6ave ihe right to hold the policies and renewals. 1f Lender requires, Borrower shall promptly give to I,ender
all uceipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. I.ender may make proof of loss if not made promptly by Bonower.
Uniess Lender and Bonower otherwise agrce in writing, irtsurance procceds shall be applied to restoration or repair
af the Property damaged, if the restoration or repair is economically feasibie and I.ender's security is not lessened. If the
restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds 3ha11 be
applied to the sums se~ured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has ~
offered to stttl~ a claim, then Lender may colleet the insurance proceeds. Lender may use the proceeds to repair or restore '
the Property or to pay sums secured by this Sxurity Instrument, whether or not then due. The 30-day period we!! begin '
when the notice is given.
Unless Lender and Borrower otherw+i~e agree in writir~g, any application of proceeds to principal shali not extend or
postpc~ne the due date of the monthly payments refened to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by I.ender, Borrower's right to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shaii pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Preservatioa and Maintenance of Property; I.ease6olds. Borrower shall nat destroy, damage or substantially
change the Property, aliow the Property to deteriorate or commit waste. If this Security Instrument is on a teasehold, -
Borrower shall comply with the provisions otthe lease, and it'Borrower acquires fe~ title to the Property, the leasehold and
fce title shall not merge unless Lender agrees to the merger in writing.
7. Protection of Leader's Rig6ta tn tt~e Piroperty; Mortgsge Iasuraace. If Borrower fails to perform the
covenants and agrcements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Property (such as a procceding in bankruptcy, probate, for condemnation or to enforce laws nr
regulations), then Lender may do and pay. for whatever is necessary :o protect the vafue of the Property and Lender's rights
in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
[nstrument, appearing in court, paying ~easonable attorneys' fees and entering on ihe Property to make repairs. Although
Lender may take action undee this paragraph 7, Lender does not have to do so.
Any amounts disbursed by L.ender under this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
the date of disbursement at th~ Note rate and shall be payable, with interest, upon notice from L.ender to Borroa•er
requesting payment.
B(~lt~~'t3GE
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