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<br />86- 102486
<br />t IN I FORM COVFN A N r% Horrower and Lender rnveaant and agrera%b.11owc
<br />1. Payment of Principal and interest; Prepayment snd (.ate Charges, BorriiwPr shill promptly' pa% 1v 1`1
<br />the principal ofand internt on the debt evidenced by the Note and any prepayment and lave charRr. due under the Ni,ir
<br />2. Funds for Taxes add Insurance. Subject to applicable law or to a writic %u by Lender. Horrowrr shall pay
<br />to Leader on the day monthly payments are due under the Note, unit! Oie Note a p:u,i it, full, a sum ( "Fund% "1 equal !o
<br />one- lwelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument thl vrarty
<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 duc din the
<br />basis o(curreni dais and reasonahle estlmajes of future escrow items.
<br />The Funds shall be held in an institution the deposils or accounts of which are Insured or guaranteed by a federal or
<br />slate 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 Lilies% an agreement I% made or applicable law
<br />requires interest to be paid. Lender shall not he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debt" to the Funds and the
<br />purpose for which each dehit 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 dales 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 to Borrower or credited to Borrower on monthly payments of i und% 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 anv
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of ail sums secured by This Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property I% 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 Payinents. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall he applied: first, to amounts payable under parag7raplti 2; second, to interest
<br />due; and last_. to principal due.
<br />4. Chargm Lena. Borrower shall pay all taxes, assessments, charges, tines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leaschold 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 shall
<br />pay them on lime directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<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 />agrees in writing to the payment of the obligation secured by the hen in a manner acceptable to Lender, (h) contests in Ro cid
<br />faith the lien by, or defends against enforcement of the lien In, legal proceeding% which in the Lender's opinion operate to
<br />prevent the enforcement of the hen or forfeiture of any part of the Property. or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordmaime, the lien to this Secunty 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 ov lake 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 Ions by fire, hazards included within the term "extended coverage" and any other hazards for which lender
<br />requires insurance. This insurance shalt he 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 he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. if Lender requires. Borrower shall promptly give to Lender
<br />all receipts 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 of lass if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwiu agree in writing, insurance proceeds shall he applied to restoration or repair
<br />or the Property damaged, if the restoration or repair is economically feasible and Lender's security a not lessened If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall he
<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 the Property, or does not answer within 30 days a notice from lender that the inwrance earner has
<br />offered to settle a claim, then lender may collect the insurance proceeds. Lender may use the proceeds in repair or restore
<br />the Property or to pay sums secured by this Security instrument, whether or not then (Inc. 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 not extend or
<br />postpone the due dale of the monthly payments referred to in paragraphs I 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 m%urance policies and proceeds re%uhing
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrumenl immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or suhmanually
<br />change the Properly, allow the Property to deteriorate or commit waste If this Security Instrument I% on a leaschold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title in the Property, 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; Morgtage Insurance. if Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there u a legal pritceedmg ihai may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may Include paying any sums secured by a hen which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys fees and entering on the Property to make repairs. Allhough
<br />Lender may lake action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 %half become additional debt or Borrower secured by this
<br />Security Instrument Unless Iorrower and Lender agree to tither irnm of payment. these amounts shall Mvlr tntrre%i Innn
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<br />the date of dishumemeni at the Nate tale and shall be payable, wuti more%(. Upon notirr from Lender to Borrower
<br />dp(
<br />requniing payment.
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