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UNiPORM CbVENANT3. HOrrOwec aAd Laldet OOVeaaDt and sgra a3 fOlbws:
l. P~sa~t ot P~tedp~l ud Lt~+ea~ P[~¦~t a~ Lte CbarfM. Bomowa skaU promptly paY when due
the principal of and intd~est os~ the debt evidenood by the Note ~ad any Prepayment aad late charges due under the Notc.
2. I~~r~ for Tues asd I~au~uee, Subja~ to applicabk law or to a writtea wsivu by La~der. Borrower shall pay
to Leader oa the day monthly paymeats are due under the Note, unW the Note it paid in full. s sum (`•Funds") oqual to :
oae-tadfth of: (a) yeuly taxes wd assesunents which may attain prionty over thia Socurity Instruma~t; (b) Y~*~Y `
leaaebold p~yments or ground rents on We Property, if any; (c) Yesrly haurd insurancx praniums; and (d) yearly _ }
mortgage insuranoe premiwna. if any. Theae itans sn callod "escro~v itans." I,ender may estimate the Funds dut on the
basia of current dsta and rea~onsbk estimates af futw~c eacrow itans.
Ttze Funds shali be hetd in an institution the deposita or acoounts of which u+e inaurod or gwrantxd by a federal or
state agency (including I,ender if Lender is such an insiitution). Lerider shall gpply the Funds to pay the escrow items.
I.ender may not chuge for holding and applying the Funda, analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Fu~ds and applicable law permits Lender to make such a charge. Borrower and
Lender may agroe in writing that interest shall be paid on the Funds. i,Tnless an agrament is made or applicable taw
requires interest to be paid~ Lenda shall not be roquired to pay Borrower any interest or earrtings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
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s~~j~n~ jUj w'~Ii:Il ~di;Jl iii,'U~t W U~c a' ut;lia qaj iitauc. a ica, a v.asw "w'C y,=,wOw .....,,::r j~'~
this Security Instrummt. ~ ~
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payabte prior to
•:he due dates of the escrow items. shall excoed the amount roquired to pay the escrow iiems when due, the excess shall be,
at Bornowcr's option. either promptly repaid to Borrowrr or- credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by I.ender is not sufCicient to pay the escrovritems when due, Borrower shall pay to Lender any
amount nacessary to make up the deficiency in one or more payments as requirod by I.ender.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Bonower
any Funds held by Lender. If under paragraph 19 the Froperty is sold or acquired by I,ender. Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by L,ender, any Funds held by Lender at the time of
application as a crodit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by I.ender under (
paragraphs 1 and 2 shall be appliGd: first, to late charges duo under the Note; second, to prepayment charges due under the '
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and tast, to principal due.
4. Cbarges; Lieas. Borrower shall pay all taxts, assessments, chargcs, fines snd impositions attributable to the
Property which may attain priority over this Security Instrumsnt, and lessehold 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, Bonower shall
pay them on time directly to the person owed payment. Bottower shall promptly furnish to I.ender all notices of amounts
to be paid under this paragraph. If Borrawer makes these payments directiy, Bonower shall promptly furnish to I.ender
receipts 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 oblig,ation secured by the lien in a manner acceptable to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) socures from the holder of the iien an
agreement satisfactory to Lender subordinating the lien to this Socurity Instrument. If Lender determines that any part of
the Property is subjxt to a lien which may attain priority over this Security Instrument, I.ender may give Borrower a
notice identifying the lien. Bonower shall satisf~ the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. Hazard Insurance. Borcower shall keep the improvements now existing or hereafter erected on the Property
insured against Ioss by fire, hazards iacluded within the term "eatended coverage" and any other hazards for which Lender
requires insurance. T'his insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to I.ender's approval which shall not be
unreasonably withheld. ~
All insurance policies and renewals shall be acceptable to Lender and sha11 include a standard mortgage clause.
Lender shatl have the right to hoId the policies and cenewals. If Lender requires, Bocrower shall promptly give to Lender
. all receipts of paid premiums and renewal notices. In ihe event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
restoration or repair is not economically feasibie or Lender's security would be lessentd, the insurance proceads shali be
appiied to the sums secured by this Security Instrument. whether or not ihen due, with any ezcess paid to Banower. If I
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has I
offered to settle a claim, then Lender may collxt the insurance procaeds. Lender may use the procoeds to repair or restore I
the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
when the notice is given.
Uniess Le~der and Borrower otherwist agree in writing, any application of proceerfs to prineipal shall not eatend or
postporte the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by Lender, Bonower's right to any insurance policies and procceds resulting
from damage to the Property prior to the acquisition shalf pass to Lender to the extent of the sums secured by this S~ecurity
Instrument immediately prior to the acquisition.
6. Preservation and Maintenance of Praperty; Lesse6olda. Borrower shall not destroy, damage or substantially
change the Property, allow the Property ta deteriorate or commit waste. If this Seeurity Instrument is on a leasehold,
Borrower shall comply with the provisions of the fease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not merge unless Lender ag*ees to the merger in writing.
7. Protection of I.eader's Rights in t6e Property; Mortgage Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a tegat proceeding that may significantly af~'ect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
regulations), then I.ender may do and pay for whatever is necessary to protect the valu~ of the Property and I.ender's rights
in the Property. L.ender's actions may include paying any sums secured by a lien which has priority over this Security
Instrument, appearing in court, paying reasonable attorneys' fces and entering on the Property to make repairs. Although
Lender may take action under this paragraph 7, L.ender does not have to do so.
Any amounts disbursed by Lender under tt~is paragraph 7 shall become additioaal debt of Borrower secured by this
Sec~rity Instrument. Unless Borrower and Lender agree to other terms of payment, these amount~shall bear interest from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
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