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<br />87 105375
<br />UN ChW COWNANTS. Borrower and Lander covenant and agree as follows:
<br />1. PMynent of Pdinic" and Inter; Prepayment and LOA Chorgns, Borrower shelf promptly pay when dale the
<br />principal of and Interest on Nee debt ovidanoW by the Now and any propwonerit and late charges duo under the Nuts.
<br />2. frwn* for Taxes mW fnsmraanco. to applicable law or to a written waterer by Lender, Borrower shall pay to Lender
<br />on the dyr reenthly payments are der under the Note, until the Note Is paid In A4, a sum ("Furtds') equal to ono•hvoKth of: (a) yearly
<br />taxes smil sessooments which may assn priority over this Security Instrument; (b) yearly loosphold payments or ground ruts an the Prop -
<br />any, k w4 (c) yearly hawd Insuestoo pramlums; and (d) yearly mortgage insurance prorniums, K any, The item$ we
<br />#am." Lest may estimate Nre Funds duo our the basis of current data and revs of future eac ow .
<br />The Funds std be hold In an Institution the deposits or accounts of which we Insured or Ruwanteed by a federal or state agency
<br />Oickiding La nclor If Lemur Is such an ln ). Lander shell apply the Funds to pay the escrow items. Lender may not Charlie for how
<br />keg and tho Funds. a dyeing the account tat or vwffyIng the escrow hers, unless Lender pays Borrower Interest on this Funds and
<br />applicable law pormits, Lander to mace such a charge. Borrower and LaWor may agree In wftV that levered sW be paid on fits Funds.
<br />an agreenterst Is reads or applicable few requires Interest to be paid, Lander shag not be mpW to pay Borrower any Interval or
<br />esimings on the Funds. Lender shall give to Gomm, without charge, an annual accounting of the Funds showing credits and doW to
<br />the funds and the purpose for which each debk to the Funnds was made. The Rants we pledged as additional security for the surns se-
<br />cured by this Seamy Instrument.
<br />If the amount of the Funds held by Lander, together with the future nw" payments of Funds payable pry to the der dew of the
<br />escrow Ram, shy exceed this amount required to pay use escrow Kars when dyer, the simicess ahua be, at Borrower's option. Wier
<br />promptly repaid to Borrower or crecillod to Borrower on monthly payments of Funds. K the amount of the Fwxls field by Lander is not
<br />suffident to pay the escrow Items when due, Borrower shall pay to Lender any amount necessary to mace up the deficiency In one or
<br />more payments as required by Landes.
<br />Upon payment In h4 of &A armors secured by this Security Instrument, Lender shy promptly refund to Borrower any Funds hold by
<br />Lancer. K under paragraph 19 the Property Is sad or acquired by Lander. Lender shall apply. no Inter than Inimedlistally prior to the sale
<br />of the Properly or ke acquisition by Lander, any Funds held by Lander at the tins of application as a credit against the serene secured by
<br />this Security Instrumerit.
<br />3. Application of Payments. Unless applicable law provldes otherwise, ere psyrnents received by Lender unsder paragraphs t
<br />and 2 " be arppied Arsl to it" charges due under the Note; second, to prepayment charges due under the Note; third, to amounts
<br />payable under paragraph 2: fourth, to Interest due; and lest, to principal dace.
<br />4. CMt'gss; Limm Borrower she pay all taxes, assessments, charges, tines and bnposftlons attributable to the Property which
<br />may adaln priority over this Security Instrument, and to sehctd payments or ground rents, it any. Borrower shall pay those obligations In
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<br />the manner er provided In paragraph 2. or K not paid In that manna. Borrower afhaM pay than on tins directly to the person owed payment.
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<br />Borrower shal promptly hmnleh to the Lender ant notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br />Borrower antW promptly Amtish to Lander receipts evidencing the payments.
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<br />Borrower shelf promptly discharge any hen which has priority over this Security Instrument unless Borrower: (a) agrees In writing to
<br />the payment of the obligation secured by the Man In a manner acceptable to Lender; (b) contests In good faith the Ran by, or defends
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<br />against enforcement of the Man In, legal proceedings which In the gander's opinion operate to prevent the enforcement of the Man or for-
<br />failure of ony put of the Property; or (c) secures Iran the holder of the Man an agreement satisfactory to Lender subordinating the Man to
<br />the InstrumoK N Lender deterninsis that any pat of the Property Is subject to a ion which may attain prbrky over this Somity,
<br />Instrument. Lender mar gale Borrower a rnoffiee Identifying the ban. Borrower shat shy this Ron or take one or mom of the actions set
<br />forth above within 10 days of the giving of notice.
<br />5. Hatt" Irmsur irme. Borrower she keep the improvements now existing or hereafter ~ad on the Property Insured against
<br />toss by Are, hourds, included win the tam "eaended coverage" and any other hazards for which Lender requires insurance. This in-
<br />surance oW be makilisined In the amounts and for the periods that Lender requires. The Insurance carrier providing the kxsurance shat
<br />be chosen by Borrower subject to Lender's approval which shell not be unreasonably withheld.
<br />M Instirance policies and r•nswals shy be acceptable to the Lender and shall Include a standard mortgage clause. Lender shall have
<br />the eVM to how the policies and renewals. If Lander requires. Borrower shall promptly give to Lender ant receipts of paid premium and
<br />renewal notices. In the event of less. Borrower shall give prompt notice to the Insurance curia and Lender. Lender may make proof of
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<br />leas A not made prornpily by Borrower.
<br />U nis" Lender and Borrower otherwise agree in writing, insurance proceeds she# be applied to restoration or repair of the Property
<br />demageti. k the restoration or repair is economically and Lender's security Is not loosened. If the restoration or ram Is not soon-
<br />ornically feasible or Lender's *amity would be lessened. the insurance proceeds shy be applied to the sums seared by this Security
<br />whether x nol then due, with any exom paid to Borrower. M Borrower abandons the Property, or does not answer within 30
<br />days a notice lion Lander that the insurance carrier has offered to settle a own, then Lander may collect the insurance proceeds. Lender
<br />may use the proceeds to repair or raft" the Property or to pay sums secured by this Security Instrument, whether or not then due. The
<br />30-day period will begin when Me nice Is given.
<br />Lieless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not extend or postpone the duo
<br />daft of aro monthly payments refer to In paragraph t and 2 or change tit® @mount of the payments. if under paragraph 10 the Property
<br />is by Lander. Borrower's right to any Inaxance policies and proceeds resulting from darnage to the Property prior to the sequls-
<br />Ition shill pass to Larder to the extent of the sums by this Security tnstntmeni Immediately prior to the acquisition.
<br />S. Premervailloin seta Makliberiance of Propo ft LesssiWAds. Borrower OW no destroy. damage or tisMy change
<br />Me , allow aro Property to deteriorate or commit waste. K this Security Instrument Is on a Wasohold. Borrower shed comply with
<br />Mae provisions of aro fie. and M Borrows acquires fee We to the Property, the lessetnald and fee titre shy not mergs unless the Lend
<br />ogroes to aro in writing.
<br />7, Piroleaftin of LAndw's Rights In tfam Property; Mort~ Insurance. if Borrower We to perform the covenants
<br />old agroomorits oonlolsod in Oft Security Ineftoonf, or there to a too proceeding flat may signifloonIfy affect the Lender's right In the
<br />Proparly WA* as a proceeding In bankruptcy, probate. for comforrinalfori or to enforce Iowa or ), then Lender may do and pay
<br />Ow wfisfaver is necessary to protect the voue of tab Property and Lender's rights In the Property. L 's actions may Include paying any
<br />sum *owed by a fun which No priority era ade Security Instrument. OPPOWInif In court, paying reasonable and onto"
<br />our the Proporly to make repairs, Alihowo Lador may talro action under paragraph 7. Lender does mat have to do so.
<br />Any sessions debursadl by Lender urulor partagirwh 1 shy bomno additional debt of Borrower secured by this Samily Inat t
<br />n and LoWev agrw to older term of s %hall boa Iftlarest from date of disbursement err the Note
<br />oft and shed be horn Lender to Borrower toWn" payment
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