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<br />88- 10478E
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<br />UNIfORM COVENANTS Borrower Bnd Lender coven.ol and agree as follows:
<br />I, Paymoar of Pri.e1po1and I.'....': Pr.p,oym..' and I.a'. Charg... Borrower shall promptly pay when due
<br />the principal orand interest on the debt evidenced by the Note and an~' prepayment nnd latc charges due under the Note.
<br />2. Fundi for Tallftud Insuranee. Subject to applicable law or to n written waiver by lender. Borrower shall pay
<br />10 Lender on the day monthly payments arc due under the Note. until the Note is paid in full, a sum ("Funds") equal to
<br />one.twclfth of: ell yearly lUes and assessments which may auain priority over this Security Instrument; (b) yearly
<br />leasehold p,oyments or ground rents on the Property, if any: (c) yearly hazard insurance pr.miums; and (d) yearly
<br />monpac 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 />..a.. all"llCY (including Lend.r if Lend.r is such an institution), Lendcr shail apply the Funds to pay the escrow items.
<br />Lender may no. charg. for holding and applying 'h. Funds, analyzing 'he account or ..rifying .h. escrow items, unless
<br />Lender pays Borrower in.....' on th. Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writins that interest shall be paid on the Funds. Unless an agreement is made or applicable Jaw
<br />requires interest to be paid. Lender shall not be required to pay Borrower any mterest or earnings on the Funds. Lender
<br />shall give to Borrower. without charse. an annual accounting cfthe 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 Insuumenl.
<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 oflhe escrow items. shall excecci the amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower'~ 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 />&moum necessary to make up the deficiency in one or marC' payments as required by Lender.
<br />Upon payment in (ull of all sumli secured by this Security Instrument, Lender shall promplly refund to Borrower
<br />any Funds held by Lender, [fund.. paragraph 19 the Property is sold or acquired hy Lender, Lend.r shailapply, no lat.r
<br />than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit.gainst the sums secured by this Securit)' Instrument.
<br />3. Appilcalioa 0' Paymenta. Unless applicabl. law pro.ides otherw..e. ail paym.nt. recei.'ed by Lender under
<br />par3graphs 1 and 2 shan 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. ClIarps; UItItL Borrower shan pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attam priority over this Secunty Instrument. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in (W'agraph 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 to Lender all notices of amounts
<br />10 be paid und.r thIS p,oragraph, If Borrower makes these p,oymenlS directly. Bnrrow.r .hail promptly furnish to Lender
<br />receipts O\'idencing the p,oyments.
<br />Borrower shall promplly discharge any lien which has priority over thiS Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment cfthe obligation secured by the lien In a manner acceplable to Lender; (b) contests in good
<br />faith the lien by. or defends against enforcement of the hen in, legal proceedmgs which in thc Lender's opinion operale 10
<br />prevent the enforcement of thc lien or forfelturc of any pan o( the Propeny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the hen to this Security Instrument. If Lender determines thai any pan of
<br />the Property is subject to a lien which may attain pnonl)' ovcr this Seeunty Instrument, Lcnd~r may gi"e Borrower a
<br />notice idenlifying the lien. Borrower shall satisfy the lien or take one or more of the actions sel forth aba"e within 10 day,"
<br />of the giving of notice.
<br />5. Huard 11IIIIrDCe. Borrower shall keep the improvements now existing or hereaC1er ~recled on the Propeny
<br />insured apiostloss by fire, hazards mcluded wuhm the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This. insurance shall be mamtained In the amounts and for the periods that Lender requires. The
<br />insunmce carner providinS the Insurance shall be chosen by Borrower subJrcl lo under's approval which shall not be
<br />unreasonably WIthheld.
<br />AlllMurante policies and renewals shaH be acceptable to Lendcr and shan Include II standard n10ngage clause.
<br />Lender shall ha.. the rishllo hold ,h. poliCIes and renewals, If Lender reqUire>, Borrow.r .hall promptly give to Lender
<br />all nx:cipts of pajd premiuDll and renewal notices. In the event of 1055., Borrower shall glvc prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss ifnot made promplly by Borrower.
<br />Unless Lender and Borrower otherwISe agree m wnung, insurance proceeds shall be applied to restoration or repair
<br />oftbe Propc:rty damaged. if the restoralion or repair 15 economically feasible and l.ender's security is not lessened. )f the
<br />restOn.lion or repair is not economically feasible or Lender's seeunly would be lcosscned, the insurance proceeds shall be
<br />applied 10 the sums $Q.:urcd by this Sccurily Instrument, whelher or not lilen due, wuh Bny excess paid to Borrower. If
<br />Borrower abandons the Property, or does nol answer within 30 days a nollce from Lender that Ihe insutance carrier has
<br />otrered to setde a claim. then Lender may coJlecl the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not Ihen due. The JO..day period will begin
<br />when the norice is gi~en.
<br />Unless Lender and Borrower otherwlSC agree in writing, any application of proceeds 10 principal shall not extend or
<br />postpone the due dale of the monthly payments referred 10 in paragraphs I and 2 or change the amount of the payments. If
<br />under paracraph 19 the Propeny is acquired by Lender, Borrower's righllo any msurance policu:s and proceeds resul1ing
<br />from damase to the Propcny prior to the acquisition shall pass 10 Lender 10 the e."\lent or the sums secured b)' thiS Security
<br />Instrument immediately prior to the acquiSItion.
<br />6. PraenatiOll aad. Maialenaan or Propel'Jir: Lalebolda. Borrower !Ohall nol destro)'. damage or !tubstantially
<br />chanle tM Propeny. allow the Propeny to deteriorate or commit waste. If thiS SccUnlY Instrument is on a leasehold,
<br />Borrower Wll comply with the prov15ions oflhe lease. and irBarrower acqulr~ fee 1I11e to 1he Propeny, Ihe leasehold and
<br />fee title shall not merae unless Lender agrees 10 the merger in writmg.
<br />7. ProI<CtIoa 0' Lader'. Riallta I. lhe Property; MortpllO Insurance. If Borrower fads to perform Ihe
<br />covmantsand ap-ummu contained in Ihis. SccunlY Instrument. or there IS a legal proceedmg lhat may slgmficanlly affccl
<br />Lcnda', riahu. m the Propc:rty (Iuch U iI proceedmg in bnnkruptc)', probate, for condemnallon or to enforce laws or
<br />rqulaUOfII). then Lender may do and pay for whalC\'cr is necessary to protcctlhe '\.'alue or Ihe Property and Lender's nghts
<br />In the Property. l..aKIer's actions mal' mclude paying any sums 5CC'ured b)' a hen which has pnont)' over thiS Srcunty
<br />Instrument, appcannJID coun. pa)'in, reasonable" anorneys' fea and en.enng on the Propert)' to make fepalrs Ahhough
<br />Lender may tUeKtmn undcrthll paralnph 7, Lende"r does. nol halie lodo so
<br />Any amounts. dlsbuncd b) Lender under Ihu, para,raph 7 ,hall become addu tonal debl uf Borrower sCC'ured b) thl~
<br />Secunty Ins.tnnnent Unleu Borrower Ind Lender agree to other terms of paymenl, Ihoc amounlS !than hear mlerol rmm
<br />the clate or dnbunemenl It Ihe- Note rale" llnd !ohaU be' payable. with IOlcrrsl, upon nolln~ from under III Rt1rru....cr
<br />requau.. paYllWlt
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