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<br />89° 00544
<br />UNIFORM COVSNAN'iS. Borrower and Lender covenant and agree as follows: .
<br />1. Paymst 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 />3. Fonda for Taxes and lasursace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments am due under the Note, until the Note is paid in full, a sum ("Fun"') equal to
<br />one- twelfth of: (a) yearly tares and assessrrtents 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 />basis ofeurrent 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
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<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 />purpome for which each debit to Ote Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Soraanity Instrument
<br />N the amount of the Fun& Wd by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow item shall exceed the amount required; to pay the escrow items when due. the excess shad be,
<br />at Borhmwer's . either•" protinptly 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 ply toes Leader any
<br />amocartt n;qcessary to make up the deficiency in one or more payments as required by Lender.
<br />ispw payment ent In full of all sums secured by this Security Instrument, Lender shall pr raptly refund to Borrower
<br />any e.m& Wd by Lw-,dti•. If •%nder paragraph 19 the Proper ty is scrim or acquired by Lender. Lender shall apply, no later
<br />than im miediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />appl' mOm as a credit against: the sutras secured by this Security Instrument.
<br />3. Applieadoe of Paiyasents. 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 payatble under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; );.teas. 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 fir groutt¢G rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 4 or if sat paid ME that scanner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shalt promptiiey fit rttish to Lender all moves of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrowu shalt I rewpt�r. farnish to Lander
<br />receipts evidencing the payments.
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<br />Borrower shW prartiptly discharge any lien which has priority over this Security Instrument unless Borrower. (a)
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<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
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<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 fame 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 Utn which may attain priority over this Security In*
<br />nstrument, Leader may give Borrower a
<br />notice identifying the lien. Banower shall satisfy the lien or take one or more of the actions set ferth above within 10 days
<br />of the giving of notice.
<br />S. Ha=rd Imewance. Borrower shall keep the improvements now existing or hereefCer erected on the Property. .
<br />insured 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 Lender's approval which shall not be
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<br />unreasonably withheld.
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<br />AU insurance policies atnd renewals shall be
<br />po acceptable to Lender and shall include a standard mortgage c4uue:
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<br />Lander droll have the right to hold the policies and renewals. If Leader requires, Borrower shall promptly give to Lender
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<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may snake proof of loss if not made promptl) 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 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 dm 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 304ay period will begin
<br />when the notice isgivetn.
<br />Unless Leader and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpont the due date of the t wn&ly payments referred to in paragraphs 1 and 2 or change the amount of the payments. "If
<br />under paragraph 19 the Propexty: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 See rity
<br />Instrument immediately prior to.the acquisition.
<br />6. Preservation and MaFatenance of Properp, Leaseholds. Borrower shall not destroy, damagpar 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, 4#Miehold 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 rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
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<br />Instrument, appearing in court, prying reasonable attorneys' fees and entering 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
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<br />the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower
<br />to
<br />requesting payment.
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