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<br />88--101579
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal Bnd Interestj PrepMyment and Late Charges, Horrower shall promptly pay when due
<br />the principul (If and interest on the debt evidenced by the Note and any prepayment and laic charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or 10 a written waiver by Lender. Borrower shull pay
<br />to Lender on tilt: day monthly payments arc due under the Note, untillhe NOle is paid in full, u sum ("Funds") cquallO
<br />one-twclfth of: (a) yearly taxes and assessments which may allaill priority over this Security Instrumenl; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiullls, if uny. These it~ms are callcd "cscrow items." Lender may est imate the Funds due on the
<br />basis of currcnt data and reasonable estimates offuture escrow item~.
<br />The Funds shall be held in an institution the deposits or accounts of which arc 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 Ihe 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 shallnol be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, 3n annual accouJlting of the Funds showing credils and debits to the Funds and the
<br />purpose for which each debit to the Funds was mudc. The Funds arc pledged as addilional securityfor 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 FUllds payuble 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 10 Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds hdd by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up t he 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 immediutely prior to the sale of Ihe Property or its acquisition by Lcnder, any Funds held by Lender at the time of
<br />application as a credil againsl the sums secured by this Security Instrument.
<br />3, Application of Payments. Unless applicable law provides otherwise, all paymenls received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepaymenl charges due under Ihe
<br />Note; third, 10 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 nHIY attnin priority over Ihis Security Instrumenl, and leasehold payments or ground rents, if any.
<br />Borrower shall pay Ihese obligations in the Illanner provided in p:.ragraph 2, or if nol paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish 10 Lender all noticcs of amounts
<br />to be paid under Ihis paragraph. If Borrower makes these paymcn!s directly, Borrower shall promptly furnish to Lender
<br />receipls evidencing the payments.
<br />Borrower shall promplly discharge any lien which has priority over this Seeurily Instrumcnt unless Borrower: {a)
<br />agrees in writing to the payment of the obligalion secured by the lien in a manner acceptable to Lender; (b) 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 Properly; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Securily 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 />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within Ihe term "exlended coverage" lInd any other hazards for which Lender
<br />requires insumnce. 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 lInd rencwals shall be acceptable 10 Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold Ihe policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all reeeipls of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss ifnol made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rep&ir
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's securily is nol lessened. If the
<br />restoration or repair is not economically feasible or Lender's securily would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons Ihe Property, or does nOI answer within 30 days a nOlice from Lender that the insurance carrier has
<br />offered to sell Ie a claim, then Lender may collect the insurance proceeds. Lender may use Ihe proceeds 10 repair or reslore
<br />the Property or to pay sums secured by this Security Instrument, 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 nol extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of t he payments. If
<br />under paragraph 19the 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 10 the exlent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Propertyj I,easeholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deleriorate 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 10 the Properly, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />envenants and agreemenls contained in this Security Instrument, or there is a legal proceeding that may signilicanll)' atltxt
<br />Lender's rights in the Property (such as a procceding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is neeCSSltr)' to proteclthe value oflhe Property and Lender's rights
<br />in the Property. Lender's actions may include paying any SUllls secured by a lien which has priorily o\'er Ihis Se.'nrit)'
<br />Instrument, appeuring in court, pa)'ing reasonable attorneys' fees and enlering on the Properl)' to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not haw to do so.
<br />Any amounts disbursed hy Lender under this paragraph 7 shall become addition:.l debt of IJorwwcr ~.'cun'd by I his
<br />Security hslrulIlcnl. Unless &rrower and Lender agree to other terms ofpaYIll~nt. Ihese 1I1l101llHs shall b.'al inlerrst fmlll
<br />the date of disbursement at the Note rail' and shall be payable, with interest, upun !1olil"e from Lcnda III HOITowl'r
<br />requesling paymellt.
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