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<br />89-101487
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<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 to a written waiver by Lender. Borrower shall pay
<br />r to Lender oil the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fund;') equal to
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<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; (e) 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 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 shad 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 l 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 tares, assessments, charges, fines and impositions attributable to the
<br />Propeity which may attain priority. over this Security. Instrument, and leasehold payments or ground rents, if any.
<br />Bormwer 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 paymerivi- .
<br />Borrower shall promptly-discharge any lien which has priority over this, Security Listrument. unless Borrower: (a)
<br />agrees in writing to the payment of the obligation %ecurr -i by the lien in a manner acceptable to Lender, 14) 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 cotice.
<br />S. Hazwi Insurance. Borrower shall keep the improvements now existing or-hereafter erected on the Property
<br />insured against lass by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This imurant:e dial) be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the it<<,iiM -.i:C shall he chosen by Borrower subfect to Lender's approval which shall not be
<br />u6timsonably withheld.
<br />All insurance policies and. rencivals shall be acceptable to Lender and shall include a standard mortgage. daiiu.e.
<br />Lender shall ha%tthe right to hold the policies and renewals. If h_t.nder requires, Borrower shall promptly givelo, Leader
<br />all receipts of paid premiums and rencwal notices. In the event of fuss. Borrower shall give prompt notice io the Insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Iliarrower_
<br />Unless Lender and Borrower otherwise agree in writing, insura;ce r3mc;eeds shalt be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically Peas -.Ne 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 he
<br />applied to the sums secured by this Security instrument, whether or not th6i ,due, with any excess pairs to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a ncli,:e from Lender that the insurance carrier has
<br />offerers to settle a claim, then Lender may collect the insurance proceeds. Le: der may use the proceed:; to repair or restore
<br />the Property or to pay sums secured by this Security Instrumeni. 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 aitd 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 bums 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 suhstantially
<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 Lendees'Rights in the Property. 'Mortgage insurance. If Hornmer fails to perform tine
<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 to bankruptcy. probate. for cnndemnauon or to enforce law% or
<br />regulations), then Lender may do and pay for whate%er is necessary to protect the value of the Property and Lender's rights
<br />in the Property. !.ender'% actions may include paying any sums secured by a hen which has priority over this Security
<br />Instrument. appearing in court. paying reasonable attorne)s feet and entering on the Property tv make repetr. Although
<br />Lender may take action under this paragraph 7.1 ender does not have to dil sv.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional dcht of lJorroncr tie, tired h} tht�
<br />Security Instrument. Unless Borrower and Lender.igree to other terms of pay went. these .ini. mss vhall br.ir tnt.!rr,t from
<br />the date of dishuncincnt at the %'tile raic anal shalt he uith irirrre.t, u11011 turret tii'ni I ender t. floirtnter
<br />requesting payment
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