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UNtFORtie OovEntwrtrs. Borrower and Lender covenant and agra as follows:
1. Paysest ot Principal ~sd Iptera~ Prtpaymeat asd I.ate q~ar~es. Borrower shall promptly pay when due ~
tbe principal of and interest on the debt evidenc:ed Ay the Note aad any Prtpayment and late charges due under the Note.
2. PkreN for Tasa asd Imwranee. Subjxt to applicable law or to a written waiver by L,ender. Horrower shall pay
ta Laida on the day monthly paymrnts are due under the Note, until t}u Nate is pud in full~ a sum ("Funds") equal to
oaNt~?elfth of: (a) yeuly taues and sssessments which may attain priority over this Security Instrument; (b) yearly
leasehold payments or ground rmts on the Property. if any; (c) yeuly hazard insurance prtmiums; and (d) yatrly ~
mot~tgsge insurance premiums, if any. These items arre calicd "escrow items." Lencler mAy estimate the Funds due on the ~
basis otcunrdt _dat,~ ~rf~'~nable estimates of foture escrow items. ~
The Funds shall be eld in an institution the deposits or accounts of which are insured or guaranteod by a federal or ~
atate agency (including Lender if Laider ia auch an institution). Lender shall apply the Funds to pay the escrow items. ~
I.ender msy not chuge for hoWing and applying the Funds, analyzing the account or verifying the escrow items, unless
Lender pays Horrower interat on the Funds and apptu~ble law permits I.ender to make such a chuge. Borrower and
Lender may agra in writing that interat sha!! be p~id on the Funds. Unless an agroemant is made or sppGcable law
ro9uirea intuest to be paid Lender s1~ll not be requirod to pay Borrower any interest or earnings on the Funds. I.ender
ahall give w Horrower~ without charge, an annual aocaunting of the Funds showing crodits and debits to the Funds and the
purpo~e for whicb ach debnt W the Fwids waa made. The Fnnda are pledged as additiansl sacurity for the sums s~curod by
this Security Instrument.
If the amount of thc Funda heW by I,ender~ together writh the future monthly payments af Funds payable prior to
the due dstee of the escrow items, sbiU eacoeed t~e amount reqnined to pay th~ escrow items when due, the excess shall be,
at B~ver'a option, eithtr promptly repiid to Borrower or crodited to Bonower on monthly payments of Funds. If th~
amount d the Funds held by Lender i~ not sul6cicat to pay tht sscrwv items ~?hm due, Borrower shall pay to Lender any
amouat aeoeeaary to make up the de~'iciarcy in one or mon payments as reqnired by Ixnder.
Upoa paymtnt iw fult of al! wms aeeured by this Security Ir~trument, La~der shaU pmmptly refund to Borrower
iu?y Fnndt ~dd by Lender. If under puagmph 19 the Property is soW or acquired by Lender~ L.ender• shsll apply. no tater
thsn immediatdy prior to the aak of the Property or its-aoquiaitton by I.ender, any Funds held by Lender at the time of
apQtication as s crodit againat the suans secured by this 3ecurit~r Ipstrument.
3. Apptia~tio~ oi pq?~esp. Unless applic;sbk tarv providea otherwist, all payments raxivad by Lcnder ander
puagraphs 1 and 2 s6all be applied: 6tst, to Lt~ chu~a due under ih~ Note; second, to prepayment charges due under the
Not~ tbird. to unou»ts paysbk under Qangraph 2; fowth, to intereat due; and last, to principal due.
4- C~ar~e~ IJea~• 8orrower shall pay all taxes, a~.seasments, chsrges, &~ea and impositeons attributabk to the
Property ~rhich may attain priotity over tlus Security lnstrument, and leas~ehold p~ymmts or ground renta, if any.
Borro~ver sbaA Qsy theae obli6ationa in the rnanna providad in patagraph 2~ or if not paid in that manner. Bocrower shatl
paY them on time dirxtly to the peraon o~ved payment. Borraa~er shall promptly furnish to I.ender all noticas of amow~ts
to be paid nndef this paragraph. It Borrowa makes t]xse p~yments diroctly, Borno~ver shall promptly furnish to I.e~Ma
rc+cdpts evidencing the payments. ~ .
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agras in writing to the payment of the obligation secured by the lien in a manner accegtable to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in. legal proceedings wriich in the Lerzda's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of ihc Property; or (c) secures from the holder of the liea an
agrxment satisfactory to Lender subordinating the lirn to this Socurity 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 Borrower a
notiae idrntifying the lien. Borrower shaU satisfy the lien or take om or more of the actions set forth above within 10 days
of the giving of notice. . '
S. Hsssrd I~urance. Bonnwer shall keep the improvemeats now existing or htrcaRer erectod on the Property
insured against loss by fire. hazards included within ths term "extended coverage" and any other hazards for ~rhich Laider
roquires insuranc~. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
inaunuue carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shalt not be
unreasonably withheld.
All inaurancx poticies and renewals sttall be soceptable to Lender and shall include a standard mortgage clause. ;
I.endet shal! hsve the right to hold the policies and renewals. If I.;ender requires, Borrower shall promptly give to I.ender 3
all receipts of paid premiums and rrnewat notices. In the 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.
Unlas I.ender and Borrower otherwise agree in writing, insurance procecds shall be appliod to restoration or r.epair
of the Praperty damagod, it the restoration or repair is economicalty feasible snd Lender's socurity is not lessenod. If the
restoration or repair is noi economically feasibk or Lender's s~cwity would be les.uncd, the insurance proceeds shall be
applicd to the sums secured by this Socurity Instrument, whether or not then due, with any excess paid to Borrower. If
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
o~'erod to settk a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begen
whrn the notice is given. .
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eztend or
pc~stpone the due date of the monthly paymenu referred to in paragraphs I and 2er change the amount of the pnyments. If
under psragraph 19 the Property is acquired by I.endtr, Borrower's right to any insurance policies and procteds rtsutting
fmm damage to the Property prior to the acquisition shal! pass to Ltnder to the exttnt of the sums securod by this Security
Instrument immediately prior to the acquisition. ~
6. Preser*atioe aad Mainteniace of Property; Leaseholds. Borrower shall not destroy, damage or substantially
change the Proptrty, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall compfy with the provisions of the lease, and if Borrower acquires fce title to the Property, the leasehold and
fa title shall not merge unless I,ender agrces to the merger in writing.
7. ProtecHoa of Leader'a Rights in the Property; Mortgage Iasnrance. If Borrower fails to perform the
covenants and agreements containad in this Security Instrument, or there is a tegal proceeding that may significantly affect
Lendtr's rights in the Property (such as a proco~ding in bankruptcy, probate, for condemnation or to enfvrce laws or
regulations), then Lender may do and ~ay for whatever is necessary to protoct 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 Security
Instrument, appeuing in court, paying ressonabk attoraeys' fas snd entering on the Property to make rtpairs. plthough
Lender may take action under this parsgraPh 7, I,ender does not have to do sp.
My amounts d'qburaed by I.ender under this paragraph 7 shall become additional debt of Bonowrr secured by this
Security Instrument. Unlas 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 bo payable. with interat, upon notice from L,endrr to Borrower
roquesting payment. ~ R 50~ YacE ~7~7~
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