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<br />8g.. 100166
<br />I. iNiFORMCQ\FNANTS Borrower and Lender covenant andagrer..asfoliow%:
<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 charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable iaw 01.1(i it written waiter by lender, Borrower shall pay
<br />to Lender on the day immthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (b1 yearly
<br />leasehold payments or ground rents on the Property, if any; (e) yearly hazard insurance premiums: and (d) ycarly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufftcigi t: t ,* f?ay 117e escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in orie o; m.�-e, vY.nents as required by Lender.
<br />Upon paymerf in. full of all sums secured by this Secul^ty Instrument, Lender sligil promptly refund to Borrower
<br />any Funds held by Ler,.der. If under paragraph 19 the Property is sold or acquired by Lender. Leaser shall apply. no later
<br />than immediately prior to the sale of the Property or its acquisition by L Kruder, any Funds held by Lender at the time of
<br />application as a credit 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 I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third,-to amounts payable under paragraph.?;• fourth, to uifirest due, and last, to principal due.
<br />6. Charges; Liens. Borrower shall pay a1;!• pmcs,. ate. sments, gWirges, fines and impositions attributable to the
<br />Property which may attain priority over this Se- cun' ; Instrument, acid leasehold payments or ground rents, if any.
<br />Borrower sfw l pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on. tirncdirectly to the person Awed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid kthder this paragraph,. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. if Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5._.•.Httzwd Insurance. Borrower shall keep the imprgoements now existing."uc hereafter erected on the Property
<br />ensured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to.Lenders approval which shall not be
<br />unreason. hly withheld.
<br />:!,AFI,insurance policies and renewals shall be acceptable-to Lender and shall. include a standard mortgage clause.
<br />Lg.ndetr �fxall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender:
<br />all Tecdpts of paid premiums and renewal notices. to the event of loss. $narrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is econatatically feasible and Lender's security is not lessetsed.. If the
<br />restoration or repair is not economically feasible or Lenders security would be lessened, the insurance proceeds shall be.
<br />applied to the sums secured by this Security Instrument, whether or Trot then due, with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not ,answer within 30 days a notice from Lender that the insurance carrier•ha s..
<br />offered t osettle a claim, then Lender, may cnllect the insurance proceeds. Lender may use the proceeds to repair or restore -
<br />the Property or to pay sums secured by this Scvgrity Instrutn'tht, whether or not. there due. The 30 -day period .1MR begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postparte the due date of the monthly payments referred To.in• paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower s right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and ?Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; :Mortgage insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's right-;
<br />to the Property. Lender's actions may include paying any sums secured by a lien which has prionty over this Security
<br />instrurnent, appearing to court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph I. lender does not have to do ,,n
<br />Any amounisdo hurced by Lender under this paragraph'Y shall hetionu additmnal dcht of fit irroaer secured by this
<br />Security Instrument. U :Iless Borroiwi and Lender agree_ to tither terms of payment. Ihc.e .I1101ints shall heir Interest frlim
<br />the date of drsburwn -ton at the Note rate and shall he payahIc. %%nh !Mere.'. urou nvII,r room 1 ender to Bort(n%er
<br />requesting payment
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