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<br />88- 103096
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follow"
<br />I. Payment of Principal 8IId Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />Ihe principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under I he Note.
<br />2. Funds for Taxes and Insurance, Subject to applicable law or to a wrillen waiver by Lender, Borrower shall pay
<br />to Lender on the <lay monthly payments are due under the NOle, until the NOle is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly tIDLes and assessments which may allain priority over this Security Instrument; (b) yellrly
<br />leasehold payments or ground rents on the Propeny, if any; (e) yearly hazard insurance premiums; and (d) yearly
<br />mongage 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 fUlUre 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 Ihe 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 nOl be required to pay Borrower any inlerest or earnings on the Funds. Lender
<br />shali give to Borrower, withoul charge, an annual accounting of the Funds showing credits and debits 10 the Funds and Ihe
<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 />ffthe 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, Ihe ellcess shall be,
<br />at Borrower's oplion, 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 Ihis Security Inslrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender, If under paragraph 19 the Propeny is sold or acquired by Lender, Lender shall apply. no later
<br />than immedialely prior to the sale of the Propeny or its acquisition by Lender, any Funds held by Lender at the time of
<br />appliClltion 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 I and 2 shall be applied: first, to late charges due under the Nole; second. to prepayment charges due under the
<br />Note: third, 10 amounts payable under paragraph 2; founh, to Interest due; and last, 10 principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessmenrs. charges, fines and imposillons attributable to the
<br />Property which may altain prionty over thiS Security Instrumenl, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligallons in the manner provided In paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to Ihe person owed payment. Borrower shall promptly furnIsh to Lender all nollces ofamounb
<br />to be paId under this paragraph, If Borrower makes thl"e payments dIrectly, Borrower shall promptly furnish 10 Lender
<br />receIpts evidencing the payments
<br />Borrower shall promptly dIscharge any lien whIch has pnonty over thIS SecurHy Inslrument unless Borrower: (al
<br />agrees in wrillng 10 the payment of the obhgation secured by the lien III a manner acceptable to Lender; (b) conlests In good
<br />faith the lien by, or defends agamst enforcemenr of the hen in, legal proceedings which In the Lender's opmlOn operale 10
<br />prevent the enforcemenr of the hen or forfeuure of any pan of the Propeny; or (cl secures from the holder of the hen an
<br />agreemenl '-l1tisfactory to Lender subordlnatmg the lien 10 thIS Secunty Instrument. If Lender determmes that any pan of
<br />.he Property IS SUb)eCI to a lien whIch may attam pnorilY over thIS Securily Instrument. Lender may g"e Burrower a
<br />notice Idenllfying the lien Borrower shall sar"fy rhe lien or take one or more of the actIons set forth aboY<' wllhin 10 days
<br />of the giving of nol ice.
<br />5. Hazard Insurance. Borrower shall keep Ihe Improvements now exislmg or hereafter erected "n the Property
<br />insured against 10" by fire, huards mcluded wuhin the term "extended coverage" and any other hazards for whIch Lender
<br />requires insurance. ThIS Insurance shall be malntamed 10 the amounts and for the penods lhal Lender requires. The
<br />msurance carner pnwldmg the msurance shall he chosen by Borrower subjecl to Lcnder's approval which shall not be
<br />unrealoonably wuhhcld.
<br />All msurance policl"," and renewab shall be acceptable to Lender and shall Include a slandard mortgage clause.
<br />Lender shall have the nght to hold the poliCies and renewals, If Lender reqUIres, Borrower shall promplly give to lender
<br />all receipts of paid premiums and renewal nollc",". In the event of loss. Borrower shall gIve prompt nollce 10 the IIlsurance
<br />carner and lender. Lender may make proof of loss Ifnol made promptly by Borrower.
<br />Unless Lender and Borrower othennse agree m wnlmg, Insurance proceeds shall be apphed 10 reslOrallon or rep..ir
<br />of the Property damaged, if the restoratIOn or repair IS economIcally fea,ible and Lender's secunty IS nut lessened. If the
<br />reslOrallon or repair IS nO! economically feasIble or Lender's secunry would be lessened, the ""urance proceeds shall be
<br />applied to the sums 'fCured by this Securily Instrument, whether or not Ihen due, wuh any excess paid to BorrOWer, If
<br />Borrower abandons the Property, or does nOI answer wlthm 30 dllYS a nollce fron' ',ender that the insurance carner has
<br />offered to settle a claim, then Lender may collect the msurance proceeds. Lender may use the proceeds tn repair or restore
<br />the Property or to pay sums secured by thIS Secunry Instrument, whether or not then due, The ,'O-day penod WIll hegln
<br />when the nOllce IS gIven.
<br />Unless Lender and Borrower otherwISe agree In wnllng, any applicallon of proceeds lu pnnclpal shall not "X tend or
<br />poslpone the due dale of the monthly payments r<,ferred to on paragraph, I and 2 or change Ihe amount of the payments If
<br />under paragraph 14 the Properly IS acquired b~ Lender, Borrower's right to any ,"surance pohcles and proceeds r"'Ullm!)
<br />from damage to the Propeny prior 10 the acquISItIOn shall pass In Lender to the extent oflhe sums secured by thIS S<,cunty
<br />Inslrument Immedlalel~ pnor 10 the acgulslllon
<br />6, Preservation and :\taintenance or Propert}'; Leaseholds. Borrower ,hall not deSlroy, damage ," ,uh'lanllally
<br />change Ihe Propeny, aliow the Properly to detenorate or commit waste If thIS SecurHy Instrument t~ 1m a leasehold,
<br />Bono,,"'er shall comply "'lIh the proviSIOns of the I~, and If Borrower acqulrl... fee Iltle 10 the Properl~. Ihe leasehold and
<br />fee I1tle shall nol merge unless Lender agrees 10 the merger on wrttmg
<br />7, Protection of Lender's Right!; in the Property; :\tOri~Rt' Insurance, If Ilorrnwer fall, I,' perform Ihe
<br />c""cnant, and agrc<:mcnls contamed on IhlS Sccunty In"rument. or there IS a legal pn>c<,edong I hal may "glllficanll~ alft,,'1
<br />lender", nghts '" t!le Propeny (such a., a proceed 109 m bankruPl9, probate, for condemnat"m or hI enforce law, nr
<br />regulal1onsl. then lender may do and pay for whatever IS necessary to protect the \'alue of the Propcrl~ and lender', nght,
<br />In the Propcn~ under's acllons may mclude pa)'mg any sums secured b~ a lien whIch has rr"'nl~ 0'<" IhlS Secunl~
<br />InSlrumenl. appearmg '" court, paymg reasonable allorneys' fees and entenng on the ProperlY 'I' mak.. rep:lIfs Although
<br />Lenc-er may l11~e aC[Ion under thiS paragraph 7, Lender does not hase 10 do so
<br />Any amounts dlshursed by lender under IhlS paragraph 7 shall hen'me addll1tlnal Jd>! 1'1 Bnn,'''''' 't', urn! h~ Ihr'
<br />Sccunl) (n"lfumml t:nle'\.'" BnrrllwcT and LC'nder agrf"C' In (l[her term.. of raymcnl. IhC'...c ;.!fl1purJh ...h.tll ,,(,.~, !J1I{"r~1 frl'01
<br />the d.D'~ of dlIDUr'-t:1ncnf lit rh~ SOfe ralt' and "hall he pa...ahk. "11~ Inlc-rC"'1. urtln nl\lh.l' frl'lT1 lender t,. BlHr\\\\t'r
<br />requ","lmll paymenr
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