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<br />-�cPa� •/ 103974
<br />UNIFQRxt COVENANTS llnrrower and Lenderco4 -tnant a..v a folic_,— 86-- 103711
<br />f. Payment of Principal and Interest; Prepayment and late Charges, 13a rrow h Ia p r mpth pay %t hen due
<br />the principal ofand interest on the debt evidenced by the Notc and alit cpay men, .o,d :mv hic under , h, Not c
<br />2. . Funds for Taxes and Insurance-
<br />to Lender on the day °monthly payments are due under the Note_ until ahe Note maid sit full, a �tnr, t"Fund. ") _quai n
<br />one-twelfth of: -(a) yearly: taxes and assessments which may ;attain pmoriry ever n, Se un*,% Instrument: (hi : -early
<br />leasehold, payments or ground rents on the Property. if any: (t} yea €]V hazard ansurance priori ,s..and W) aearjv
<br />mortgage'insurance premiums, ifanv. These items are called ..escrow- tacit;;." Lender may st:mxte she Funds due on the
<br />basis ofeurrent data and reasonable estimates of future escrow item,,.
<br />The Funds shall be held in an institution the deposits or accounts z f w inch are insured )r guaraniv.cd by ,i Icderal or
<br />state agency (including Lender if Lender is such an institution3. Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds. analyzing the account ,r vertfruig the escrow items, unless
<br />Under pay, Borrower interest on the Funds and applicable law permits I ender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. L`talcss an agreemeta r, tttade or applicable law
<br />requires interest to he paid, Lender shall not be required to pay Borrower ;ii interest or ar .nas it,. the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showng credits and debiis io the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pled ed as additional ecunt% f `r i h._ aunts 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 dates of the escrow items, shalt exceed the amount required to pay the escrow items when due. the escrss shall. be,
<br />at Borrower's option. either promptly repaid to Borrower or credited io Borrower on monthl 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 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 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 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 over this Security Instrument, and leasehold payments or ground rents, if am.
<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 amounis
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish ro Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Secunty Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender: (b) cornests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's 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 tiic lien to this Security Instrument. If Lender deternimes 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 or take one or more of the actions set forth above within l0 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 be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not be
<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 io 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 made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be ap f':ed to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. 1.1 the
<br />restoration 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, then Lender 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 due. 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 thedue date 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 insurance policies and proceeds resuhing
<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 />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantial;%
<br />change the Property, allow the Property to deteriorate or commit waste. If tills Secunty 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
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower falls to perform the
<br />covenantsand agreements contained in this Security Instrumew. or there is a legal proceeding that may significant!•. affe.t
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). !hen Lender may doand pay for whatever is necessary to protect the value of the Property and Lender's right,
<br />in the Properly_ Lenders actions may include paying any sums secured by a lien which has prwrih , ,cr this s imt,
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Propery tc, make .epau the ueh
<br />Lender may take action under this paragraph ?, Lender does not have ti do so
<br />Am amounts disbursed by Lender under this paragraph' shall bee, me additional dcht of Born"'rr sr.:are,: h, :his
<br />Security Instrument Unless Borrower and Lender agree to other term, ,f payment these aria a ,tall ht-.0 ; t it t fr: is
<br />the elate of disbursement at the Note rate and shall ht papaNc, with i verest, t , ni r; m I cn ?ci H
<br />requesting payment
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