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UNIFORM CovEN~NTS. Borcower and Lender covenant and agroe as follows:
i. Paymeec oi Prtncip•1 aed Iacerear, Pr~eparmeac and Lace ~arees. Borrower shal! promptly pay whtn due
the principal of and interest on the debt evidenced by the Note and any prepayment and Iate charges due under the Note.
2. ~nds for Tues and Iawranee. Subjoct to applicable law or to a written waiver by Lender. Bo~rrower shall pay
to Lender on the day monthly paymrnts are due under the Note. until the Note is paid in fult, a sum ("Funds") equal to f
one-tweffth of: (a) yearly taues and assessments which may attain priority over this Security lnstrument; (b) ycarly ;
leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance prcmiums; and (d) yearly ~
mortgage insurance premiums, if any. Thae items are calle~ "escrow items." Lender may estimat~ the Funds due on tne ~
basis of curnnt data and reasonable estimates of future escrow items. " ~
The Funds shall be held in an institution the depruits or accounts of which are insurcd or guarantred by a feaerai or '
state agency (inciuding I.onder if Ltnder is such an institution). I.ender shall apply the Funds to pay the escrow items. ~
Lender may not charge for hotding and applying the Funds, anaiyzing the account ar verifying the escrow items, unless ~
Lender pays Borrower interest an the Funds and applicable law permits Lender to make such a charge. Borrower and '
Lender may agra in writing that interest shall be paid on the Funds. Unless an agreement is made or applicablc law
requires interest to be paid, I.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender ;
shall give to Borcowsr. without charge, an annual accounting of the Funds showing credi:s 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 Instrument. ~
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to 4
the due dates of the escrow items, shall eaceed the amount required to pay the escrow items when due, the excess shall be, ~
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. lf the ,
amaunt 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 deficiency in one or more payments as required by I,ender.
Upon payment in full of all sums secured by this Security Instrument, L,ender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Ixnder, Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held hy Lender at the time of
application as a credit against the sums securod by this Security Insirument.
3. Applieation of Payments. Unless applicable law provides otherwise, all payments received by L.ender 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. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security 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. Borrower shall promptly turnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument uniess Borrower: (a)
agrees in writing to the payment of the obligation 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) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Ixnder determines that any part of
the Property is subject to a lien which may attain priority Qver ihis Security Instrument, I.ender may give Borrower a _
notice identifying the lien. Borcower shall satisfy the lien or take one or more of the actions set forth above within 10 days
' of the giving of notice.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that L.ender requires. The
; insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall not be
~ unreasonably withheld.
k All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
~ Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
~ all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and L.ender. I.ender may make proof of loss if not made promptly by Borrower.
~ Unless L.ender and Borrower otherwise agrex in writing, insurance proce~ds shall be applied to restoration or repair
~ of the Property damaged, if the restoration or repair is economically feasible and I.ender's security is not lessened. If the
restoration or repair is not oconomically feasible or Lender's security would be lessened, the insurance proceeds shall be
e appiizd to the sums seeured by this Securiiy Instrument, whether or not then due, with any eacess 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 setde a claim, then I.ender may collect the insurance proceeds. L,ender may use the Proceeds to repair or restore
~ the Property or to pay sums secured by this Security Instrument, whether ar not then due. The 30-day period will begin
when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shail not extend or
postpone 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, Borrower's right to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
' 6. Preserratioa xnd Mainteeance of Property; Lease6olds. Borrower shall not destroy, damage or substantially
change the Property, allow the Properiy to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shai! comply with the provisions ot the lease, and if Bonower acquires fee title to the Property, the Ieasthold and
~ fee title shall not merge unless Lender agrees to the merger in writing.
~ 7. Protectioa of Lender's Rig6ts in the Property; Mortgage InsurAnce. If Borrower fails to perform the
~ covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afFect
I,ender's rights in tht Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
~ regulations), then Lender may do and pay fot whatever is necessary to protect the value 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 Stcurity
Instrument, appearing in court, paying reasonable attorneys' fces and entering on the Property to make repairs. Although
Lender may take actlon under this paragraph 7, Lender dces not have to do so.
~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
~ Security Iastrument. Unless Borrower and Lender agree to other terms of payment, these amounts shail 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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