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<br />89 - 10045u'-
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as fill lows:
<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 law or ton written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payments ate due under the Note, until the Note is paid in full, a sum ("Funds-) equal to
<br />1 one•twelfih 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 (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basisofcurrent 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 he 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 vwde 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 Londe n. wS? ther with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the'arnuunt 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 />than 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 principaLdue.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impoitions attributable to the
<br />Property which may attain priority. over this Security Instrument, and leasehold paymenti 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 />feces: P45 Acing ti,- pay- .n,-n to .
<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 acceptab a to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which ih the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures. Pram the holder of the lieu an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lend& determines that any part of
<br />the Property is sub;:est. to a lien which may attain priority over this Security lnstcsrttert, tLeader may give Borrower a
<br />notice: identifying'the lien. Borrower shall satisfy the lien yr take one or more of the actions, set forth above within 10 days
<br />of the giving of notim
<br />S. Hsizard-lm turanee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />s' insured against loss6y fire, hazards included within the term "extended. coverage" and any other hazards for which Lett der. . .
<br />requires insurance. This insurwim shall be maintained in the arnoutcts and for the periods that Lender requires. The
<br />insurance carrier providing the' Insurance shall be chosen
<br />by Borrower subject to Lender's approval which shall not bt: .
<br />unreasonably withheld.
<br />.. All insurance policies and renewals shall be acceptable to Lender and "shill include a standard mortgage clause..
<br />Lender shall have the tight to hold the poiides and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />allrou!ipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carccer-and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower othemm agree in writing, insurance proceedashall be applied to restoration or repair
<br />of the Property damaged, if the restoration. or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible 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 />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle 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 secured by this Security Instrument, whether or not then due. The 30 -day period 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 ofthe payments. if
<br />under paragraph 19 the Property is acquired by Lender, Borrowers 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 affo:t
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. pr —ate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for w•hate%er is necessary to protect the value of the Property and Lender's rights
<br />L in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in coup, paying reasonable attorneys' fees and entering on the Property to make rer+airti. 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 either terms of payment. these anuounR shall hear uotercst fro.ni
<br />the date of disbursement at the %ote rate and shall he payathlc. with interest. upon notice from lender to Hornowcr
<br />requesung payment
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