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UNIFORM CovEN~raTS. Borrower and L.endercovenant and agree as follows:
1. Paymeat of Principt! and Iqte~est; Prcpaymsnt aad Lte GLarga. Borrower sha:l promptly pay when due
the principal of and interest on the debt evidenced by the Nott and any prepayment and late charges due under the Noto.
2. Fuads for T~uces aerd Iesutance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly peymtnts are due under the Note~ untit the Note is paid in full, a sum ("Funds") equal to
one-twelfth of (a) yearty taxes and assessments which may attain priority over this Security Instrum~nt; (b) yearly
ltasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
basis of current data and cea.sonabk estimates of future escrow items.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a fedcral or
state agency (including Lender it Lender is such an institution). Lender shal! apply the Funds to pay the escrow items.
Lender may not charge l'or holding and applying the Funds, analyzing the account or verifying the tscrow items. unless
Lender pays Borrower interest on the Funds and applicabfe law permits I.ender to make such a charge. Borrower and
L.ender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or appticabte taw
requires intenst to be paid, L.ender shall not be requirod to pay Borcower any interest or earnings on the Funds. Lender
shall give to Borrower. without charge, an annuat accountiag of the Funds showing credits and debits to the Funds and the
purpose for which each debii to ih~ Funds was rriade. The Funds are plodged as additiorral 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
the due dates of the escrow items, shall eaceed the amount required to pay the escrow items when due, the excess shall be,
at Borcower's option, either prompdy repaid to Borrower or credited to Borrower on monthly payments of Funds. If the '
amount of the Funds held by I.ertder 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 Lender. {
Upon payment in full of all sums sccured by this Socurity lnstrument, I,ender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquirod by Lender, Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lendtr at the time of
application as a crodit against the sums socured by this Socurity Instrument.
3. Appl~rstlon of P~yments. 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 tht 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. Cbargex I.ieas. 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 mann~r, Bonower shall
pay them on time dir~ctly to the person owed payment. Bonower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly. Borrower shail promptly turnish to i..ender
receipts evidencing the payments. .
Borrower shall promptly discharge any lien which h~s priority over this Security Instrument unless Borrower: (a)
agreGS in writing to the payment of the obligation secured by the lien in a manner acceptable to L,ender; (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 L,end~r subordinating the lien to this Socurity Instrument. If I.ender determines that any part of
the Property is subject to a lirn which may attain priority over this Security Instrument, I,endtr may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actians set forth above within 10 days
of the giving of notice.
S. Hazatd Iasurance. Borrower shall kcep the improvements now eaisting or hereafter erected on the Property
insured against loss by fire, hazards included within the term "exttnded coverage" and any other hazards for which L.ender
requires insurance. This insurance shall be maintaina! in the amounts and for the periods that I,ender requires. The
insarance carrier providing the insurance shall be chc~sen by Borrower subject to Lender's approval which shaQ not be
unreasonably withheld.
All insurance policies and renewals shall be acceptable to L.ender and shall inctude a standard mortgage clause.
Lendef shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to L,ender
alt receipts of paid premiums and reneRal notices. In the event of loss, Bonower shall give prompt notice to the i:~surance
carrier and I,ender. I.eader may make proof of loss if not made promptly by Borrower. I
Unless Lender and Borrower otherwis~ agree in wnting, insurance proceeds shalt 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 L.endor's security wouid be lessened, the insuranct procceds shall be
applied to the sums secured by this Security Instrument, whtther or not then due, with any excess paid ta Borrower. If '
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
offered to settle a claim, then Lender may collect the insurance prxeeds. Lender may use the proceeds to repair or restore
the Properiy 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.
: Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall nat eztend oi
posiponc the dut date af the rnonthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquirod by Lender, Bonower's right to any insurance policies and proeeeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
[nstrument immediately prior to the acquisition.
6. PreservxNon and Msintenance of Property; I,estsehoids. Borrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shal! comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not merge unless Lender agrces to the merger in writing.
7. Protectioa of Lendec's Righb in the Property; Mortgage Inswance. If Borrower fails to perform the
covenants and agrcements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
I.ender's rights in the Property (such as a proceeding in bankrt~ptcy, probatr, for condemnation or to enforce laws or
regulaiions), ihen Lender may do and pay for whatever is necessary to protect the value of the Property and L,ender's rights
_ in the Property. Lender's actions may include paying any sums securod by a lien which has priority over this Security
Instrumrnt, appearing in court, paying reasonable attorneys' fas and e~tcring on the Property to make repairs. Atthough
Lender may take action under this paragraph 7, Lender does not have to do so. _
Any amounts disbursed by I,ender under this paragraph 7 shall become additional debt of Aorrower secured by this
Security Instrument. Unless Borrower and Lender agrce to other terms of payment, these amounts shall bear interest from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from L.~nder to Borrower
roquesting payment.
goox 50`7 ~,,~E 922
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