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<br />89-. 103629
<br />UNIFORM C:OVkNAN IS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest; Prepayment and lane 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 Niue.
<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 payrents 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 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 />s;Wdi gl►r. ;r. ° :.. :..::: :. :.:::::.w; 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 stall 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 shall 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 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 payable under paragraph 2; fourth. to interest due, and last, to principal due.
<br />4% Charges; Liens. 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 or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shrill:
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<br />pay them on time directly to the person owed payment. Borrower shrill promptly furnish to Lender all notices of amourat,�;
<br />to be paid under this paragraph. If Borrower makes these payments directly. 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 />agre*~s in arming ter the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in gaol
<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 />agrcancrri satisi°aciuty io Leadcr .ubuidinuiing cite lien iu ibis Sccuriiy 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 notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insund,against loss by fire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />twit 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 />uhreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lcw&e shall have the right to !told the policies and renewals. If lender requires. Borrower shall promptly give to Lender
<br />all'rc pts of paid premiums and renewal notices. In the event of loss, Borrower shall give prerript notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made procnpiav by Borrower.
<br />Unless Lender and Borrower othr,,,misse agree in writing, insuPtrice 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
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<br />restoration or repair is not economically feasible or Lender's security would be tetsened, the insurance proceeds shall be
<br />applied to the sums secured by this Security InstrumAmi, whether or not then diie;. with any excess paid to Borrower. If
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<br />Borrower abandons the Property, or does not:.;tmwer within 30 days a notice from Lender that the insurance carrier has,
<br />offered to settle a:c1.3im, then Lender may cent fcci the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security instrument, wiief.hcr 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 apphl ation nfproceeds to principal shalt not extend or
<br />postpdne the due date of the monthly payments referred to in paragraphs 1 and 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 �a uisition shall pass to Lander to the extent of the sums secured by this Sec:urlty
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower 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 Kith the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
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<br />fee title shall not merge unless Lender agrees to the merger in writing.
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<br />7. Protection of Lender's Rights is the Property: Mortgage Insurance. if Rnrrow•er fails to perform the
<br />covenants and agr --rrw .'s contained in this Security Instrument, or there is a legal proceeding that may Significantly afrect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate. for condemnation or to enforce law% or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
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<br />in the Property. Lendtr's actions may include paying any sums secured by a lien uhtch has pruiri1% ever thi% Security
<br />Instrument, appearing to court, paying reasonable attorneys' fees and entering on the Property to tnel.c repairs Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so
<br />Any amounts dteburwd by lender under ibis paragraph shall hecnrne addilumal debt,,?. ftrr ro -Acs %ecurcd by this
<br />Security instrument Unless Borrower and 1 ender agree 1n other terni%of paLnicut. {hr %e .tnr uitt %shall I%ear iniere.t from
<br />the date of diNhurwincist at the `site rate and %hail he p.t }.thin. with interest, up on non-c from I ender to Horr,met
<br />requmins payment
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