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<br />UNWORM C.OVENAN N Harrower and Lender emenant and agree as f iltmvs: 89— 100274
<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 Into charges due under the Note:.
<br />2, Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until Cite Note is paid in full, a sum ("Funds**) equal tc..
<br />one-twelfth of- (a) yearly taxes and assessments which may attain priority over this Security Instrument: (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (sl) yearly
<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 sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<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 19 the Property is sold or acquired by Lender, Lender shall apply, no later.
<br />th..n immediately prior to the sale of the Property or its acquisition by Lender, 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 1 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 2; fourth, to interest due; and last, to principal due.
<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, acrd. leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in, that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
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<br />rower shrlkpri nzptly dischl a.gc any lien which h :s prar,t, saver this Security -instt srst�! unless Borrower: .(�><.
<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 whiah in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any pact 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 Lett. 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. Hazard Insccamce. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss Fee; ire, hazarcfsincluded within the term "extended coverage" :aced my other hazards for -i hich Lender
<br />requires insurance. 11z1z s insurance shall -be maintained in the amounts. Lmd for tote periods that Lender requires.. The
<br />insurance carrier pray t?,.ing the insurance sf mLL be chosen by Borrower ;k::;Dject to Lender's appi�val which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and. shed include a standard mortgage clause.
<br />Lender shall have the tight to hold the policies and renewals. If Lender requires, Borrower shall promptly Five -to Lender
<br />all receipts of paid premiums and renewal notices. In the civ�ent of loss„ Ikr'rower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of frmssifnot r=de promptly by Borrower.
<br />Unless Lender and Borrower otherwise agrez in a-ritii,g, insurance proceeds %hall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is emnomically feasible and 'Leader's security is not Iessened. Jf the
<br />restoration or repair is not economically feasibly or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security, Instrument, whether or not then due, with any excess paid to Borrower. If.
<br />Borcaazr abandons the Property. or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to.r,.ettte a: claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums jecured by this Security Instrument, whether or not then due. The 30-day peIriodr will 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 />postpone 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 {.his Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of F roperty; Leaseholds. Borrower shall not destroy, damage or substartiall:tiy
<br />change the Property, allow the Property to deteriorate or commit vuaste. If this Security Instrument is on a Ieasehottt-.
<br />Borrower shall comply with the provisions ofthe 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 />Leader'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 necessay to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appeanng in court, paying reasonable attorneys' fees and entenng on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms, of payment, these amounts shall bear interest from
<br />the bate of disbursement at the Note rate and shall he payable. % ►nh interest. upon notice from I ender to Borrower
<br />requesting payment
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