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<br />86- 102690
<br />L`NtF( :FRM COVE v :sti ; Borrower and Lendr. ce,,enanr j td agree as fol!ow,
<br />1. Payment of Principal and Interest: Prepayment and Late Charges. Borrower shall Prompt% pat u iien d: :%
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under the \, >tc
<br />2. Funds for Testes and insurance. Subject to applicable law or to a written waiver by Lender. Borro%cMr .half at
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full. a sum (••Funds ) equal t(i
<br />one twelfth of (a) yearly cases and assessments which may attain pronty over this Security Instrument. eb) tear!%
<br />leasehold payments or ground rents on the Property, if any, (c) yearly hazard insurance premiums, and fol earl:
<br />mortgage insurance premiums, if any. These stems are called "escrow items '• Lender may estimate the Funds due in the
<br />basis of current data and reasonable estimates of future M-row 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 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 Unless an agreement is made or applicable !a%%
<br />requires interest to be paid. Lender shall not be required to pay Borrcmer 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 cddinonai security for the sum, secured he
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior u,
<br />the due dates 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 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 ans
<br />amount accessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full ofall sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is 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 Secunty 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 Note: second, to prepayment charges due under t he
<br />Nate: 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 over this Security Instrument, and leasehold payments or ground rents, if an.
<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 time directly to the person owed payment Borrower shall promptly furnish to Lender all notices of amounts
<br />to he 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 pnonty over this Secunt% Instrument unless Borrower (a i
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in gc cxi
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which to the Lender's opinion i;perate to
<br />prevent the enforcement of the hen or forfeiture of any pan of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating inc lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a hen which may attain prionty over this Security Instrument. Lender may give Borrower a
<br />notice identifying th lien Borrower shall satisfy the hen or take one (it more of the actions set forth aho.se within !ti des%,
<br />of the giving of notice
<br />5. Haiard Insurance. Borrower %hall keep the improvements now existing or hereafter emoted on the Properrt
<br />insured against loss by fire, hazards included within the tern "extended coverage" and any other hazards cite which i.ender
<br />requires insurance This insurance shall he maimained in the amounts and for the periods that i ender requires The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject in Lender's approval which skit!l n lr he
<br />unreasonably withheld
<br />All insurance policies and renewals shall be acceptable to Lcnder and shall include a standard mortgage clause
<br />(•
<br />Lender shall have the right to hold the policies and renewals If Lender requires, Borrower shall p rornptiy gr%_• t„ Lender
<br />ail receipts of paid premiums and renewal notices In the event of hiss. Borrower shall give prompt nonce io the insurancc
<br />camer and I tender. Lender may make proof of loss if not made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree in writing, insurance pmcceds shall be applied to restoration lrr rerwr
<br />F of the Property damaged, if the restoration or repair is economically feasible and Lender's secunty is no! lessened If the
<br />restoration or repair is not economically feasible or Lenders security would be lessened• the insurance proceeds shaij he
<br />applied to the sums secured by this Sec unty Instrument, whether or nor 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 insurance carrier has
<br />offered to seitic a claim, then Lcnder mat ualicct the insurance proceeds Lender may use the proceeds to repair or reswrr
<br />the Property or to pay sums secured by this Serunty Instrument. whether or not then due The 10 -day period wi!! !Fein
<br />when the notice n given
<br />Unless Lender and Borrrwe: otherwise agree in wining, any application of proceeds to principal shall not e%;end or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the pa%mcr.n 11
<br />under paragraph l U the Property is' by Lender. Borrower's right to any insurance policies and proceeds resuh;ne
<br />from datnagr to the Property poor to the acqursiuon shall pass to Lender to the esieni of the sum% secured h% this Stt unr%
<br />Instrument immediately prior tr. the acquisition•,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage er substannalit
<br />change the Pr ?periy• allow the Property to deteriorate or commit waste If this Security Instrument i, on a leasehold.
<br />Borrower shalt comply with the provisions of the lease, and if Borrower acquires fee title t, the Property. the leasehnld avid
<br />fee title shalt, not merge unics% Lender agrees to the merger in writing
<br />7. Protection of Lender's Rights in the Property; Mortgage insurance. if Borrower fails t„ pertiirm the
<br />coyenanls and agreements contamcd in this Security Instrument, or there is a legal proceeding that Ina% significant;% ;trip :!
<br />Lender's rights in the Property (such as a pnviceedmg in bankruptcy. pre bare. for condemnation or to enforce 6,ot, :`r
<br />rr;ulatiomsl. then Lender may do anid Pan, for w haletcr is necessary to protect the salue of the Pmpert% and Lcnder s n0ils
<br />in the Property Lender's actions. may include paying any sums secured by a hen which has priont% niter the, scr;:nt%
<br />L
<br />Instrument, apprae;ng !r+ cnrill. paying reat4mable anorneys fen and entering the Prorto•r!% mace rrp,i :,,
<br />Lender may rake cotton tinder this paragraph [ ender does not hate in do so
<br />Any tin oanf%. disbursed by i_e idcs under this paragraph' shall isecl me additional deft of A%�rn wr-
<br />,e.
<br />Secu rt insu s rtrni L'nlrs Heart, wrr and I rrid.r agree t,s other terms pavnt ^r, chest ani.•ur.l, .hal;'�ci: �..
<br />the dote t :;:c urxrrr ti :u the NCafe fate Intl shall nv payahit. w,rh i . ,!r4'ri moll,
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