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UNiFORM COVEN~NTS B.~rrower and Lender covenant and agree as ~ollows: . y u
1, Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptiy pay when due
the principai of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
2. Funds far Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shali pay
to Lender on the day monthly payments are due under the Note, unti! the Note is paid in full, a sum 1"Funds") equal to
one-twelfth of: (a) vearly taxes and assessments which may attpin priority over this Security lnstrument; (b) yrarly ±
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, itany. These items are called "escrow items." Lender may estimate the Funcis due an the ~
basis of current data and reasonable estimates of future escrow items. ~
The Funds shall be held in an institution the deposits or accounts of which are insur.~ or guaranteed by a tederal or
state agency (including Lender if Lender is such an institution). Lender shalt apply tfie Funds to ray the escrow items.
Lender may not charge for holding and appiying the Funds, analyzing the account or verifying the cs:.row items, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or ap~licable law
requires interest to be paid, Lender shall not be required to pay BorroWer any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
this Security (nstrument. i
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shalt be,
at Borrower's option, either promptly repa~d to Borrower or credited to Borrower on munthly payments of Funds. If the
amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
amount necessary to make up the defici.ncy in one or more payments as required by Lender. ~
Upon pay~ment in ful) of ali sums secured by this Sec~rity Instrument, Lender shall promptly refund to Bo~rower
any Funds held by' ender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, an}• Funds held by Lender at the time ot~
application as a credit against the sums sec:ured by this Security lnstrument.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrow•er shall pay~ all taxes, assessments, charges, fines and impositions attributable to the
Property~ which may attain priority over this Securit}~ [nstrument, 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 pa~~ment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. I( Borrc~w•er makes these papments directly, Borrower shall promptly furnish to Lender _
receipts evidencing the payments. x
Borrower shall promptly discharge an}~ lien w~hich has priority over this Secunty lnstrument unless Borrower: (a) ~
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable ro Lender; (b) contests in good
faith the lien by, or defends against enforcement ~f the lien in, legal proceedings which in the Lender's opinion operate to ~
prevent the enforcement of the lien or forfeiture of an}• part of the Property; or (c) secures from the holder of the lien an " ~
agreement satisfactory to Lender subordinating the lien to this Securit}~ Instrument. If Lender determines that any part of
the Property~ is subject to a lien w~hich mav auain priorit}~ over this Securit}• Instrument, Lender may give Borrow~er a ~
notice identifying the lien. Borrower shall satisf~• the lien or take one or mare c1f the actions set forth above w~ithin 10 days ,
, of the gi~-ing of notice. ~
5. Hazard Insurance. Borrower shall keep the impr~vements now existing or hereafter erected on the Property
insured against loss by fire, hazards included w~ithin the term "extended c~~~•erage" and any other hazards for w~hich Lender
reyuires insurance. This ;nsurance shall be maintained ~n the amountti and f~r the periods that Lender requires. The
insurance carrier pro~iding the insurance shall be choun b} Bc~erou•er subject to Lender's appro~~al w~hich shall not be
unreasonably withheld.
AU insurance palicic~ and reneuals shall be acceptable to Lender and shaU ~nclude a standard mortgage clause.
Lender shall have the right to hold the ~licieti and rene~~~als. If Lender reyuirrs, Borro~~er shall promptl~~ gi~e to Lender
all receipts of paid premiums and renew~al notires. In the e~ent of loss, Borro~tier shal! gi~•e ~rompt notice to the insurance
f carrier and Lender. Lender may~ make proof of I~tic if not made promptly by BurroN•er.
Unless Lender and Borrow~er otheruise agree in w~riting, insurance prcxeeds shall be applied to restoraiion or repair ,
~ of the Propert}~ damaged, if the restoration or repair is economically feasible and Lender's securit}~ is not lessened. If the _
' re3torati~~n or repair is not economicall~• teasible or Lender's securitp w~ould be lessened, the insurance proceeds shatl be
~ applied to the tiums secured by this Security~ Ins!rument, whether or not then due, with an~~ excess paid to Borrow~er. If
Borrc~wer abandons the Property, or doe~ not ansa•er within 30 days a notice from Lender that the insurance carrier has
~ offered to settle a claim, then Lender ma}~ rnllect the insurance proceeds. Lender may use the proceeds to repair or restore
~ the Property ar to pay~ sums secured b}~ this Securit~ Instrument, whether or not then due. The 30-day ~riod w•ill begin
s when the ~otice is gi~~en.
~ l`nless Lender and Borrow~er otherw~ise agree in w~riting, any- application c,f prcxeeds to principal shall not extend or
~ ~st~ne the due date of the monthly payments referred to ~n paragraphs 1 and 2 c~ change the amount of the pa~~ments. If
undrr paragraph 19 the Property is acquired b}~ Lender, Borrower's right to any insurance policies and prcx~eds resulung
F fram damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b} this Securit}~
~ Instrument immediately prior to the acquisition.
~ 5. Preservation and Vlaintenance of Property~; Leaseholds. Borrow•er shall not destroy, damage or substantiall}~
change the Property, a(low the Property ta deteriorate or commit waste. If this S~curity Instrument is on a leasehold,
~ Bormwer shall comply with the provisions of the lease, and if Borrow~er acquires fee title to the Propert}•. the leasehold and
€ fee title shall not m2rge unless Lender agrees ro the merger in w~riting. ,
~ 7. Yrotection of Lender's Rights in the Property; :~iortgage Insurance. If Borroaer fails to perform the
; covenants and agreements contained in ihis Security Instrument, or there is a legal proceeding that may significarulS~ afiect
F Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce iau~s or ~
regulations), then Lender may do and pay for whatever is necessary to protect the value of tne Propeny and Lender's rights '
in the Property. Lender's actions may include paying any sums secured by a lien w•hich has priority o~~er this Security~
; Instrument, appearing in court, p3ying reasonable attorneys' fees and entering on the ProFerty to make repairs. Although
~ Lender may take action under this paragraph 7, Lender dces not have to do so. '
~ Any amounts disbursed by Lender under this paragraph 7 sha11 become additional debt of Borrow~er 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 the Note rate and shall be pay~able, with interest, upon notice from Lender to Borrower
~ requesting payment.
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