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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 89— 102486
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pa when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under t he Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shale 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 of current data and reasonableestimates 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 earninp- oil the Funds. Lender
<br />shall give to Borrower, without charge, an anniw accounting of the Funds showing credits and debitsto 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 s�e.ured by
<br />this Security Instrument.
<br />If the amount of the Funds field by Lender, to
<br />gether• with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed * amount squired to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Burrower 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 bender any
<br />amount necessary to make up the deficiency in one Oman! (?a.)anents as required by Lender.
<br />Upon payment in full of all sums secured �Sy [Iris Se<-v ityly Instrument. Lender shall promptly ce-Vol to Borrower.
<br />any Funds held by Lendm..If under paragraph. 19 rli Property is sold or acquired by Lender. Lender t .L'4-ply, no later
<br />than immediately prior to the sale of the Prapi^. or its acquisition by Lender. any Funds held by fle er at the time of .
<br />application as a credit agaitsst the sain� s.curr :his Security Instrument.
<br />3. Application of Payments:; Cnle -s -ioplicable law p *ovides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: 6 rs u? !ate barges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amount& payable undo: pienagm?it fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrarie ,:hall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may • attain priori ci L. this Security Instrument. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations }n the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them an 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 pars ,rents.
<br />Borrower shall promptly discharge any lien which has priority over this Security lnstrume, _'•ess B3 rrower: (a)
<br />agrees in w riling to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) ccnr_ii�sts 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 det'e nines that any part of
<br />the Property is subject to a lien which may att,::n priority over this Security instrument. Lender may give Borrower a
<br />notiar identifying the lien. Borrower shall satisfy the lien or take one or more of the actionss, set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements nine 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 thar 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 sta.Hard mortgage clause.
<br />Lender shall havethe rigN to hold the policies and renewals. if Lender requires. Borrower shall promptly give to Lender
<br />all re tipts of paid prerni utts and renewal notices. In the event of loss. Borrower shall give promr: f notice to the insurance
<br />carrier and, Lender. Lade :r may make proof of loss if not made promptly by Borrower.
<br />Unit_ , Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to rests rattan or repair
<br />of the !sr junty damsgcd, if the restoration or repair is economically feasible and Lender's security is not i =:v; ?ed. if the
<br />restoratim or repair cs. not economically feasible or Lender's security would he lessened, the insurance proceYd:� shall be
<br />applied to the sum. Ccurcd by this Security Instrument, whether or not then due, with any excess paid to &: r, owcr. tr
<br />Borrower: Nindons the Property, or does not answer within 30 day% a notice from Lender ;oat the insurance e;arrier has
<br />offered to s+atte a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Proptm or to pay sums secured by this Sm -urity Instrument, whether or not then due. The 30-day period will begin
<br />when the nonce isgiven.
<br />Unless Lender and Borrower otherwise .;gre:L, to writing, any application of proceeds to principal shall not extend or
<br />postpone ter: due date of the monthly payments a trred to to paragraphs f and 2 or change the amount of the payments. If
<br />under parggraph 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 bums secured by this Security
<br />instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property. Leaseholds~. iorrower shall nut destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument rs on a leasehold.
<br />Borrower shalt comply vv ith the prop istons of the lease, and if Borrower acquires fec title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in vatting.
<br />7. Protection of Lender's Rights in the Property: 'Mortgage Insurance, If Ilorrv%ticr farts to perform the
<br />covenants and apteements contained in this Security Instrument, (IT there is a legal proceeding that nia% significantly affect
<br />Lender's rights in the Property (such as a proceeding to bankruptcy. probate. for condemnaimrt nr to enforce law. or
<br />regulations), then Lender may do and pay for whatever is nest .sary to protect the value of the Property acid Lender's rights
<br />i„ Alt: Property. I.cnder's actions may Include paying any sums secured by a hen which has pn(utty over Ihts Sectirtly
<br />Instrument, appearing in coup, paying reawnahleattornev,. fees and entering on the Property to retake rcpairs Althotigh
<br />Lender may take action under this pat.igraph 7, i ender doe's not have to dc* sn
<br />Any artlounty disbursed by Louder under this paragtaph 7 -*ill become additional debt of lie irrovv er securesI by r his
<br />Security lnsrrutitoti l nlrs; flnrrower arid I miler ague to otliet -°fits of laeyrrte•nt. It:rsoanuunns shall be.ir mtrrrst from
<br />the date of dtsbuiscoie1,t at the ti,rtc r.11c .1,111 shall be ps►,ihlc. unfit uttcrcst, upon notice limit I slider to Ittirmcscr
<br />teque.ting pay tnc•nt
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