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<br />RE .RECOROEO 89- 101995 89- 101739
<br />VNIFORM 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,limpayment 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 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 insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofcurrent data and reasonable estimatesof 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 -p¢ti able prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items whmmdue, the excess shall be:
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly'.p' a` enis of Funds. If the
<br />amowt: of the Funds held by Lender is not sufficient to pay.the.escrow items when due, Borrower ihall paay to Lender any
<br />amount nemssary to make up the deficiency in one or mesa rayments as required by Lender.
<br />Veen. payment in full of all sums secured by this Semrity Instrument, Lender shall promptly refW to Borrower
<br />any Funds field by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall#7� ly, no lacer'
<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 aciedit against the sums secured by this Swu city Instrument.
<br />& ' Application of Payments. Unless applicable UTv provides otherwise, all payments received by Lender under
<br />parap4F s 1 and 2 shall be applied: first, to late charges due under the Not,; second, to prepayment charges due under the
<br />Note; fh'rd, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shad: pay all taxes, assessments. charges, fines and im*,r7tions attributable to the
<br />Properq which may attain priority-_o),er: x&ns Security Instrument, znd leasehold payments or ground, rents, if any.
<br />Borrewimshall pay these obligation:. in the manner prmidtd in paragraph: 2, or ifaut paid in that manner: Borrower shall
<br />pay time directly to the p+zrson owed payment. Borrower sha.14 - ompily, furnish to Lender all notims of amounts
<br />to be pair: under this paragraph. If Borrower makes these payments 11rxectly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<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 acceptable to Lender; (b) c!sri its in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opiniean operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the tin :d:e -r 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 giye Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth abovc..within 10 days
<br />of O. -v 1pying of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />ins... L-J against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />reguLm-'s insurance. This insurance shall be maintained in the amounts and for the period!. that Lender requires. The
<br />isuratli„e carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />urr =w nably 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 poliocs and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal of .uces. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof'of loss if not made promptly by Borrower.
<br />Unless Lender and Bormw er otherwise agree in writing, insurance proceeds shall be applied to restilfation 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 feaxible or Lender's security would he lessened, the insurance proceeds shallibe
<br />applied to the ,i nivi, secured by this Security; Instrument, whether or not then due. with any excess paid to Borrower. if
<br />Borravcker the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offerai t rye t ,ll: ,i 7sim, then Laider may collect the insurance proceeds. Lender may use the proceeds to re-pair or restore
<br />the Prot my-.)t-to ray sums se;ured by this Security instrument. whether or not ilim due. The 30- day petiod will begin
<br />when the tome is g Ken.
<br />Unless LaidGr and Borrower othenOR., agree in writing, any application of proeed% lei principal shall not extend or
<br />postpe,-ar the due hate of the morthly payments referred to in paragraphs I and 2 or change the amount of the payments. If .
<br />undor,pamgrapli 19 the Property is acquired by Lender, Borrower's- right to any insurance policies and prnct: cds resulting
<br />franc dam ige to the Property prior .o the acquisition shall pass to Lemur to tJtu.e.xituit of the sums secured by this Security
<br />lnsini ment immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds.' llorrow•er 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 1Borrower acquires fee title to the Property, the leasehold and
<br />fee titi a shall not merge u nles , Lender agrees to the mei Lirr 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. of there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding to bankruptcy. probate, for condemnation or to cnlorce laws or
<br />reoula* ions), then 1€. enc rfer may doncartel pay forwhatrver protorthevatticofthe Property .bills_ iidrr',iiglits
<br />in the Property. Lender's actions may include paying auy sums securer by a lien which has priority osor this Security
<br />instrument, appearing in court. paying reasonable attorneys* ftti", and entering on the Property to make repairs. Although
<br />Lender may take aciton under this paragraph 7, bender does not have to dti so.
<br />Any amounisdishurwi dby Lender under this paragraph 7 shall bedtime additional debt of florrowcr secured by this
<br />Security Instrument Unics% Borrower and Lender agree to other terms of payment. these amounts shall hear interest from
<br />the date of dishunentent at the Note rate and t-hall he p+ay,011c. «ith mterest. upon noli,c from lender it- Harrower
<br />requesting payment
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