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UNIPORA! (70VBNAT~tJ'S. B4li'01v~! tu~d I~epdet OpVCtlsat and aarOC ia fOlloMS: _
i. p.~?.a~~ or rrt.dw aei Le~a~ ~re~.~ ..i t,.a c~a~.. HormNer ah~U pmmPUY P~?Y when due ~
the principal of ~nd interat oa the debt e~v~Cienoe~d by the Note aad ~wy prepayma~t snd lste charges due under tbe Note.
P~ for'1'a:es ni Irrr~ce. Subject W applicabk la~? or to a arittai ~?a[ver by Laider. Borrower ahall P~Y
to I.ender on ttise day moathly PaYn~ua are due uade~ the Nota unti! tbe Note is paid in t1~U, a awa (•~~nds") oqwl to
onc~hvelfth of: (a) ya~rly tauea ~ad aaes~neata which may ~ttsin p~iority over thla Security Inatrua~ent; (b) Y~*~Y
lwehold p~ymaita ar ~rouad nats on the Ptopaty. if anY: (c) Yeuly haurd iaaaraaoe praaiwns; and (d) yarly _
mortgage in:urenoe p~emiuwa, if aay. Theae ita~ are called "escrow itema." I.~nder rmy e,~timstc the F'unda due an the
b~sis of cwrntnt dsta and caao~bk atimstcs dtbtun escro~v items.
' The Ftuids a6sU be hcW in aa iostiteitioa the depoe~ta or sooouata of which are iruured or guarantced by a federal or
. atate sgeacy (Iach~ding L~ndtr if Lender ia auch ~n iostitutioa). Ira?dar ah~ll apply the Funds to pay the escmw items.
Lender nwy not charga for holding and applytng the Ptiu?ds, anslys~ng the sooount or vtrifying the eacrow items. unkas
Lender psys Borrower interest on the Funds and applicaWe law permits I.ender to maice auch a charga Borro~?cr and
La?der enay aga iA arriting tbst intertat ahaU be pi~~iid oa the Fluids, Uaksa an agroe~ent is made or appbcsbk bw
• requirea interest ta be p~Id, I.ender ahal! not be nequirad to pay Horrower any intarest or earnings on tlu Funda. Lendu
shal! givc to Borrower. without cbargc, an anuw~l aecouating of the Funds showing credits and debita to the Funda and the
purpc~se for which each debit to the Funds waa made. Tt~e Funds are plodged as additional security for the sums secured by ti:
this Secarity Instrumcnt. '
Ii tha amount of the Funds held by Lender, together with the future ~nonthly payaxata of Funds p~yable prior to
the due dates of the escrow iteaas. shall eacoeed the amount nquirod to pay the escrow items whea due, the excxss shall be,
at Borrower's option. ather promptly repaid to Borrower or credited to Borrower on manthly payments of Fuads. If the
amount of the Fun~is held by I.ender is aot sufficient to pay the escmw items when due, Horrawer ahaU psy to Lender aay ;
amount nocessary to make up the de8ciency in oae or more paymeata ss roquired by I.ender.
Upon p~?yment in full of a!1 sums securad by thia 5ecurity Iaatrument, I.ender shall promptly refund to Borrower
ra
any Funds held by Lender. If under paragraph 19 the Pragerty is aold or acquired by I.euder. Le~der ahaU apply, no later
than immediatel rior to ihe sale of tbe or its uisition b Lender an Funda held b Lender at the time of
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application as a credit against the sums secured by this Se~urity Instrument.
3. ApplicadoA oi Paya~enb. Unless applicable law provides otherwisc, all paymenta rexived by Lender under
paragraphs I and 2 shall be applied: Rrat, W tate charges due undtr the Not~ socand. to prcpayment charges due under the
Note; third. to amounts payable under paragraph 2; fourth, to intenst du~ aad lsst, to principal due.
4• C6arge~ I.kna. Horrowar ahaU psy sll tsxea, assessmenta, chargea, 6nes and imposidona attributable to the
Property which may attain priority over this Secwity Instrument, and leaaehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that raanner~ Horrower shall ~
pay them on time diroctly to the person owod payment. Borrowtr shall promptly furnish to Lender all notices of amounts
to be paid under this paragragh. If Borrower makes these payments diroctly, Bormwtr shap promptly furnish to Lender
roceipts eridencing the p~yments. '
Bonower shall promptly discharge any lien wWch has priority over this Sacurity Instrument unless Homower: (a) ~
agrces in writing to the payment of the obligation secured by the Gen in a manner ac~oeptable to Ld~der; (b} coniests in good
faith the lien by, or defends against enforcement of the tien in. legal proceedings which in the Lender's opinion operate to
prevent the enforcement of the lien or focfeiture of any gart of the Property; or (c) secura from tbe holder of the liEn an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If I.ender determines that any part of
the Property is subjoct to a lien which may attain priority over this Security Instrument~ Lender may give Borrowa a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. Huzard Insurance. Bonower shaU keep the improvements now eaisting or hereaRer erected on the Property
. insured against loss by fire, hazards includai within the term "extendod coverage" and any other hazards For which Lender
requires insurance. This insurance shaU be maintained in the amounts and for the periods that Lender requires. The
- insurance carrier providing the insurance shall be ehosen by Bonower subject to Lender's approva! whieh shall not be 1
unreasonably withheld. '
Atl insurance policies and renewals shall be acceptable to Lender and shall include a standsrd mortgage clause.
Lender shall have the right to hold the policies and renewals. If Leackr requires, Borrower shall promptly give to I.ender
all receipts of paid premiums and renewal notices, In the event of lass, Bonower shal! give grompt notice to the insurance
carrier and I.ender. Lender may make proof oF loss if not made promQtly by Horrower.
Unless I.ender and Borrower otherwise agra in writing, insurance procoeds shall be appliod to restoratron or reQair
of the Property damagod. if the restoration or repair is ecoaomicatly feasible and Lander's security is not lessenod. If tbe
restoratiort or repa'u is not oconomica!!y feasible or Lender's secwity would be le.ssenai, the insuranct proceecis shall be
applied to the sums socurod by this Security Instrument~ whether or not then due, with any eacess paid to Bonower. If
Borrower abandons the Property. or does not answer within 30 days a notice from I,ender that the insurana carrier has
offered to settle a claim. then Lender may collect the insurance procoeds. Lender may use the procoeds to rtpair or restare
the Property or to pay sums securod by this Socurity Instrumtnt~ whether or not then due. T6e 30~day period will begin
when the notice is given.
Unless Lcnder and Borrower otherwise agra in writing. any application of procetds to principal shall not extend or
postpone the due date of the monthly payments refened 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 policiGS and proceods resulting
from damage to the Property prior to the acquisition shal! pass to Lender to the extent of the sums secured by this Sccurity
Instrument immediately prior to the acquisition.
6. PreserraNon and Mainteaance of Propetty; I,easeholds. Borrower shaU not destroy, damage or snbstantially
change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a ieasehold,
Borrower shall compiy with the provisions of the lease, and if Bonower acquires fa title to the Praperty~ the leasehold and
fa title shall not merge unlcss I.ender agras to the merger in writing.
7. Protectioo ot I.ender's Rlg6ts in t6e Property; Mortgage Insnrance. If Borrower fails to perform the
covenaats and agreemcnts contained in this Security Instrument, or there is a legal procading that may significantly a6ect
Lender's rights in the Property (such as a proceoding in bankruptcy, probate, for condemnation or to rnforce laws or
regulations)~ then Lender may do and pay for whatever is noces.sary to prot~t the value of the Property and I.ender's rights
in the Property. Lender's actions may include paying any sums secured by a lien which has priority ovtr this Security
Instrumrnt, appearing in caurt, paying r~asonahle attorneys' fas anc! entering on the Property to make tepairs. Although
I~ender may take actian under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become additional d~bt of Botrower sxured by this
Socurity Instrumcnt. 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 payabie, aith interest, upon notice from Lender to Bonower
requesting payment.
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