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<br /> TOGETHER WITH all the improvements now or hereafter erected on rty, and all easements,
<br /> appurtenances, and fixtures now or hereafter a part of the property. All replacements an " shall also be covered
<br /> by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the operty:"
<br /> � BoxitowER CovENnNTS that Borrower is lawfully seised of the estate hereby conveyed and has the nght to grant and
<br /> convey the Property and that the Property is unencumbered, except for encumbrances of record. Bonower warrants and
<br /> will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br /> Txts SECUxtTY ItvsTxuMExT combines uniform covenants for nationai use and non-uniform covenants with limited
<br /> variations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> . UNiFOxM CovExnrrTS. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br /> the principal of and interest on the debt evidenced by the Note and any prepayment and late,ch.atge�,�lue�der the Note.
<br /> 2. l�nds for Taxes and Insurance. Subject to applicable law or to a written waiver liy Leriiier, Sorrower shall pay
<br /> to Lender on the day monthly payments aze due under the Note, until the Note is paid in full, a sum ("Funds") for: (a)
<br /> yeazly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly
<br /> leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly
<br /> flood insur�nce premiums, if any; (e) yearly mortgage insurance premiums, if any; and (fl any sums payable by Bonower
<br /> to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums.
<br /> These items are called "Escrow Items." Lender may, at any tixne, coll. t,�nd„hold �unds_in an amount not to_��xceed the
<br /> maximum amount a lender for a federally relate���mortgage:����; � „��
<br /> federal Real Estate Settlement Procedures Act of 1974 as amend�d fro�n ` � 1' et aeq.
<br /> ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender�may, at any time, collect and
<br /> hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of
<br /> current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable
<br /> law.
<br /> The Funds shall be held in an institution whose deposits aze insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to
<br /> pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the
<br /> escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law
<br /> pernuts Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an
<br /> independent real estate talc reporting service used by Lender in connection with this loan, unless applicable law provides
<br /> otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay
<br /> Bonower any interest or eamings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be
<br /> paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and
<br /> debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional
<br /> security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts pernutted to be held by applicable law, Lender shall account to
<br /> Bonower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by
<br /> Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in
<br /> such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Bonower shall make up the
<br /> deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br /> any Funds held by Lender. If, under paragraph 21, Lender sha11 acquire or sell the Property, Lender, prior to the
<br /> acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit
<br /> against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 shall be applied: first, to any prepayment chazges due under the Note; second, to amounts payable
<br /> under pazagraph 2; third, to interest due; fourth, to principal due; and last, to any late chazges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br /> Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br /> Borrower shall pay these obligations in the manner provided in pazagraph 2, or if not paid in that manner, Borrower shall
<br /> pay them on time directly to the person owed payment. Bonower shall promptly furnish to Lender a11 notices of amounts
<br /> to be paid under this pazagraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br /> receipts evidencing the payments.
<br /> Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a)
<br /> agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in
<br /> good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br /> operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to
<br /> Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a
<br /> lien which may attain priority over this Security Instrument, Lender may give Bonower a notice identifying the lien.
<br /> Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br /> Form 3028 9/90 (page 2 of 61
<br /> BANKERS SYSTEMS,INC.,ST.CLOUD,MN 56302(1-800-397-2341)FORM MD-1-NE 2/5/91
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