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<br />86- 103332
<br />I.INTFL)aM (:l7VFNANT% Borrower and Lender covenant amt agtre m lidlows.
<br />I- Payment of Principal and Interest; Prepyment and Late Charges. Borrower chill Promptly pay when ,1nr
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and lace charges due under the Note.
<br />2. FmWg for Taxes Tied Imuranee. SuhIeetto applicable law ortoa writ ic -: •.%crby Lender, Ilorrower%hallpay
<br />to Lender on the day monthly payments are due under the Note, until the Note is pant to full, a sum ("r'umis'') equal to
<br />one- iwelah of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) yearly
<br />leasehold payments or ground rents on the Prorarty, 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 due on the
<br />basis of current dais 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 bya federal or
<br />state agency (including Lender if Leader 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 matte or applicable law
<br />re""!" is to O�ee paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall itm I) ICr6wbr without
<br />charge, an annual accounting of the Funds showing credits and dehas to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additinnal securily for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lendcr, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed The amount required to pay the escrow items when duc, 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 ilents when due, Borrower shall pay to Lendcr any
<br />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 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 Security Instrument.
<br />3. Application or Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2shall be applied: first, to amounts payable under paragraph 2; second. to interest
<br />due; and last, to principal due.
<br />4. Charitm Lieas. Borrower shall pay all taxes, assessments, charges, lines and impositions attributable to the
<br />Property which may attain priority over this Security instrument, and leasehold 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 Ihis Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the ohligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement ui the lien in, legal in Lender's
<br />proceedings which the opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of The lien an
<br />agreement satisfactory to Lender subordinating the lien in this Security Instrument. If Lender determines that any part of
<br />the Property
<br />is subject to a lien which may attain priority over this Security instrument, Lender may give Borrower a
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<br />notice identifying the lien. Borrower shall satisfy The lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected 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 he maintained in the amounts and for the periods that Lender requires. The
<br />insurance
<br />carrier providing the insurance shall be chosen by Borrower subject ro Lender% 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 and renewals. If Lender Borrower
<br />policies requires. 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
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<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise 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 Lender's
<br />and security is not lessened. If the
<br />reiteration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<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 insurance carrier has
<br />offered to settle a claim, (hen Lender may collect the insurance proceeds. Lendcr may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument,
<br />whether or not Then clue. The 30 -day period will begin
<br />when the notice is given.
<br />Unless Leader and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acqquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Properly prior to The acquisition shall to Lender
<br />pass to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />d. Preservatfoa aid Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit if
<br />waste. this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless lender agrees to the merger in writing.
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<br />7• Protection of Lender's Rights in the Property; Mortgage Insurance. if Borrower fails to perform the
<br />covenants and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, for
<br />probate, 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 -•jms secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property
<br />to make repairs. Although
<br />Lender may lake action under this paragraph 7, Lender does not have to dose.
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<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of these
<br />payment, amount% shall beat interest from
<br />the dale of disbursement at the Note rate and shall be payable, with interest, upon notice from lender to Borrower
<br />requesting
<br />payment
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