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<br />86-- 102583
<br />U.titFORM- COVE%.A%IS Borrower and Lenderctivenant anti agree a follows.
<br />1. Payment of Principal and Interest: Prepayment and torte Charges. Borrower shat l prompi k p pay ,%lien trio
<br />the principal ofand'interest on the debt evidenced by the Noteand art% prepayment and late charge, due under (tic Vote
<br />I. Funrle for Taxes sad Insurance. Subject toappli able law orroawrttcuwaiverh\ Lender.Rarrcrwcrc }tall pay
<br />to Lender on the day monthly payments are due under the Note. until the Note is paid m fill], it stun ("Fluid%') equal ro
<br />rue- twelfth of- la) yearly taxes and assessments which mat" attain priority over this Security instrument (b) yearly
<br />leasehold `payments or ground rents on the Property, if any; (c) yearly hazard insurance premium;: and (d) yearh
<br />mortgage Insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds duc on the
<br />basis ofcurrent data and reasonable esionates of future escrow items.
<br />Thc'Funds shall beheld 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 the escrow items.
<br />L.ender'may not charge for holding anti 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 it 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 he paid, Lender shall not he required it, 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 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 Instrument.
<br />If the amour of the Funds held by Lender. together with the future monthly paymertts of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay Cite escrow item% when due. the evC <• „shad bra
<br />at Borrower's optior, either promptly repaid to Borrower or credited to Borrower on monthly payments of Flir 111S. If the
<br />amount of the Funds field by Lender i%/oot sufficient to pay the escrow items when due. Borrower shall pay tit Lender umc
<br />'r 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 this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender if under parafraph 19 the Property i% sold or acquired by Tender, Lender shall apply, no latter
<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 suns 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 Vote: 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. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority ow.-r this Security Instrument. and leasehold payments or ground rents. if any.
<br />Brrrow•er shall pay these obligations In the manner provided in paragraph 2, or if not 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 />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 hen 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, (b) contests in good
<br />faith the lien by, or oefend% against enforcement of the lien in, legal proceedings which in the 1 ender'% opinion operate to
<br />prevent the enforcement of the hen ci forfeiture of any part of the Property; or (c) secures froin the holder of the lien an
<br />agreement satisfactory to Lender subordinating the hen to this Security Instrument If Lender determines that any part ill-
<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 cabuvr. within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower Shalt keep the improocmenrs now existing or hereafter c•rcctej on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage” and any other hazards for which Lender
<br />requires insurance. 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 ,uhjccr to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to (_ender 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 loss if not trade promptly be Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged, if the rmoration or repair is economically feasible and Lender's security is riot lessened. if the
<br />restoration or repair is riot economically feasible or Lender's secunty would be lessened, the insurance pro reds shall he
<br />applied to the sums secured by this Secunty 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 tine insurance carrier has
<br />offered to settlea claim, then tender may collect 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 then duc. The 30 -Jay period %%ill hegin
<br />where the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds io principal shall not extend or
<br />postpone the due dateof' the monthly pa) merits referred to in paragraphs t and 2 or cha .ige the amount o f the payments It
<br />under paragraph 19 the Property is acquired by tender. Borrower's right to any in.urance policies and proceeds resoling
<br />from damage to the Prolerty prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and 4tainfenance of Property: I,easeholds. Borrower shat not do Troy, darnage or,uhstaimalk
<br />Change the Property, allow the Property to deteriorate or comma waste !f this �erunty In,:ninirni is on e knseh ,lei.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tnie To the ProperiN. the leamehold and
<br />fee title shall not merge unless Lender agrees to the merger to writing
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fad, To pco orrn the
<br />covenants and agreements contained in this Security Instrument. or there is a iceal proceeding that inat stcniticaniix ailec!
<br />Lender's rights in the Propertv (such as 3 proceeding in hankruptcy, prohatc. !or cunde•mnation or to enforce WA, or
<br />regulatirms), then Lender may do and pay for whatever is necessary to protcw r the value oPI he Ptollerty and I ender', rights
<br />to the Property. Lender's actions may Include paying any sums secured try alien which ha, priori, ,,Nei th!s `ecurit%
<br />Instrument, appearing no court, raytng reasonable attorneys' tics and entering un ! he Proprrt y in make repairs \ Ithou.h
<br />!, (.ender may take acttots under this paragraph '. Lender do>.r, not hi oe to do %o
<br />Any amours dishursrd by Lender under I his pars >raf,h 7 ,bail become ;1di iw,nal ..chi sot Borrower ,rrurrd !?ti !fill,
<br />cseeaesty Insrument Unit— fk!trowcrand lender agree to,,ther terns 4panincur Ihc,e i!ij,Iunr, sft +! h<.•;ir rnt;!r,I !,,,m
<br />tine date 4 disbnn•rnrn! m the ti,re rate ant .hall he p'iyahle. Nips Inlcrc-,t. ,.,..•n ,i me,. �n.,n 1 B� r; „ors
<br />requesting TiItnew
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