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<br />89-1001005
<br />UNIFOPMCDVENANTS Borrower and Leader covenant and agree as follows:
<br />I. PAY10411tOMIJOCIVOINWhterat;PWOPWmeatud Late Clams. Borrow;rshaM promptly ZMen 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 />L FW16 for Taxes and lamarawc 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 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; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insursace premiums, if any. These item are called "escrow item." 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 bM in an institution the deposits or accounts of which.'are insured or guaranteed by a federal or
<br />state agency (including Leader if Lender is such an institution). Lender. shall apply the Funds to pay the escrow items.
<br />Lender may not chup for holding and apjA�kng the Funds, or v -i&Jag the escrow items, unless
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<br />Lender pays Borivwer interest on the Futaft and applicable I&W mss wh a charge. Borrower and
<br />Leader may agree iii- writing that4riterek-iihill be paid an the Fuidi:t, Weemin-1 is made or applicable law
<br />requim interest to be paid, E&Ww shallnot be required vi pay Bomvmrany interest or earnings on the Funds. Lender
<br />shall give to Borrower %Vj an annual accouhtinsof The F=6- showing credits and debits to the Funds and the
<br />purpose for which ocEi*Eft totbe Funds was made. The Funds are paged as additional security for the sums. secured by
<br />this security
<br />If the amount of-,1c'Fm*2s held by Leader, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escmw bmkis, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />At BOMWees option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Leader is not sufficient to pay the escrow item when due, Bormwer 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 p-,-.mpdy refund to Borrower
<br />any Funds held by Leader. If =der paragraph 19 the Property is sold or acquired by Lender. Lende sall apply, no later
<br />than immediately prior to the -,mL- elf. the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against V=m='sebumd by this Security InstrunicaL
<br />3. A"ReatiosofPayagatL Ud'essapplicable law provides ahem ise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; secomd, 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 Chugmtku Borrower shall pay all taxes, assessments, charges fines and impositions attributable to the
<br />Property which may attain priority. over Iflis Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the iri=ner provided in paragraph Z or if not paid in that manner. Borrower shall
<br />pay them on time dh=fly to the person owW payment. Borrower shall promptly furnish to Leader all notices of amounts
<br />to be paid under Ws rAiragraph. If Borrower makes these payments directly, Borrower shall promptly fi=sh to Lender
<br />receipts evidencing Cle payments,
<br />Borrower ", prcraptly discharge any lien which has priority over this Security Instrument unless Borrower. (2)
<br />agrees in writingta tine payment of the obligation secured by the lien nn a manner acceptable to Lender, (b) contests in good.'
<br />faith the lien by, or defends against enforcement of the lien in, IqA proceedings which in the Lender's, opinion operate w,
<br />prevent the enforcement of the lien or forfeiture of any part of the PrcpexVj, Or (C) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security.- LwcT-,zm-qnt. If Lender determines that any part of
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<br />the Property is subject to a lien which may attain priority over this -Swurity 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 />ofthe giving ernatice.
<br />S. Record Imirsoce. Borrower shall keep the improvements now existing or hereafter 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
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrowex,.,bAl give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Boyromer.
<br />Unless Lender and Borrower othemise agree in writing, insLw-,.,c proceews shall be applied to restoration or repair
<br />of the Property damaged, if th-t restoration or repair is economically feasible ard Lender's security is not lessened. If the
<br />restoration or repair is not comitv.mically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by tZhis Security Instrument. whether or n3t then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 daysm notice from Lender that the insurance carrier has
<br />offered to settle a claim, thern, Lender may collect the insurance proo--t-dg. Lender may use the proceeds to repair or restem
<br />the Property or to M stem secured by this Security Instrument, whether or not then due. The 30-day period will be$=
<br />when the notice is given.
<br />• Unless Lender and Bmmver otherwise agree in writing, any appl2mtion, f.-,f proceeds to principal shard not extend or
<br />postWm.- the due date ofthe m, arahly paym—, ts referred to in paragraphs I and 2 or change the amount of the payments. if
<br />=d= paragraph 19 the 7roperty is acqui-mcd t Lender, Borrower's ngbt to any insurance pobmes and proceeds resulting,
<br />from. damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instn;=nt immediately prior to the acquisition.
<br />6. Frtaatnagon and Mmi"x-+emceofPmper$V;LeamboNs. Borrower sTM all not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit want. EY cl-k'As Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lemw— and if Bormv.-r.w; ;;!res fee title to the Property, the leasehold and
<br />fee title shall not merge unless tender agrees to the merger in writirg,
<br />% Protection of tanner's Rights In the Pocimm., Mor"W Insurance. If Borrower fails to perform the.
<br />covenants and 119(cmellts co-=.-ed in this Security Ins=ment, or tb.wre is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankru;wcy, probate. for condemnation or to enforce laws or
<br />regishitim). then Lender may do and pay for whauver is necessary EOWYlect tile value of the Property and Lcndees rights
<br />in the Property. Lender's actions may include paying any sums w-ured by a lien which has priority over this Security
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may takeaction under this paragraph 7. Lender don 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 date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower
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<br />requesting payment.
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