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<br />86- 116410
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt tray Io
<br />wune twelfth o
<br />in full, sum ( "Funds") equal L
<br />Lender on the day monthly payments are due under the Note, until the Note is paid a
<br />taxes assessments which may attain priority over this Security Instrument: (b) yearly leasehold payrnentsor gi ound
<br />(&)yearly and
<br />rents on the Property, if any; (c) s: and (d) yearly mortgage insurance premiums. if auy.'1'hei:e
<br />yearly hazard insurance premium
<br />basis current data and reasonable estunalwt of
<br />items are called "escrow items." lender may estimate the Funds due on the of
<br />future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state
<br />the Funds to Pay the escrow items. bender may not
<br />sgency(including Lender if lender is Buchan institution). Lender shall apply
<br />charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless Lender pays Borrower
<br />that
<br />intereston the Funds and applicable law permits Lender to make such a charge. Borrower and Lender T�r,agreie in writing
<br />is matleora pplicablel awrequiresinteresttobe' Lender shall not be
<br />R
<br />interest shall be paid on the Funds. Unless in agreement
<br />Borrower any interest or earnings on the Funds. tender shall give to Borrower, without charge, an Manua !
<br />i
<br />required to pay
<br />aceountingotthe Funds showing credits and debits to the Fundsandthepurposef orwhich each debitto the Funds wasnLade .The
<br />ry s
<br />Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />future of Funds payable prior to the duedates
<br />,
<br />If the amount of the Funds held by Lender, together with the monthly payments
<br />the amount required to pay the escrow items when due, the excess shall be, at Borrower's
<br />of these escrow items, shall exceed
<br />repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds
<br />`V
<br />option, either promptly
<br />held by Lender is not sufficient to pay the escrow items when due, Borrower shall pity to Lender tiny amount necessary to makeup
<br />the deficiency in one or more payments as required by Lender.
<br />by this Security Instrument, lender shall promptly refund to Borrower any Funds
<br />Upon payment in full of all sums secured
<br />held by Lender. I f under paragraph 19the Property is sold of acquires) by Lender, [ imdcr shall apply, no later than immediately
<br />prior to the sale of the Property or its acquisition by Lender, any Funds held by [winder at the time of application as acredit against
<br />the sums secured by this Security Instrument.
<br />3. Application of 1'&yments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs
<br />1 and 2 shall be applied: first, to amounts payable under paragraph 2; second, to interest due: and last, to principal due.
<br />fines impositions attributable to the Property
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, and
<br />Security Instrument. and leasehold paymentsor ground rents, if any. Borrower shall pay these
<br />which may attain priority over this
<br />obligations, in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the
<br />to be paid under this paragraph. If
<br />person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />directly. Borrower shall promptly furnish to lender receipts evidencing the payments.
<br />Borrower makes these payments
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br />to Lender; (b) contests in good faith the li,:n by,
<br />writing to the payment of the obligation secured by tiie lien in a manner acceptable
<br />defends against enforcementof the lien in, legal proceedings which in the Iender sopinion operate to preventthe enforcement
<br />or
<br />of the lien or forfeiture of any part of the Property; or icy secures from the holder of tite lien an agreement satisfactory to Lender
<br />of the Property subject to s lien which
<br />subordinating the lien to this Security Instrument. If Lender determines that any part
<br />Instrument. Lender may give Borrower a notice adenti Eying t he lien. Borrower shall satisfy
<br />may attain priority over this Security
<br />the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br />on the Property insured
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected
<br />the term "extended coverage" and any other hazards for which Lender requires
<br />against loss by fire. hazards included within
<br />insurance. This insurance shall be maintained in the amounts and for the periods that lender requires. The insurance carrier
<br />tender's which shall not he unreasonably withheld.
<br />providing the insurance shall be chosen by Burrower soh }cot to approval
<br />shat t be acceptable to Lender and shall include a standard mortgage clause. Lender shall
<br />All insurance policies and renewala
<br />have the right to hold the policies and renewals if lender rrquores, Borrower shall promptly give to lender all receipts of paid
<br />to the insurance carrier and Lender. Lender
<br />premiums and renewal notices. In the event of lac.,, IloerruN cr .hall give prompt notice
<br />may make proof of lugs if not made promptly by Borrower spill ied to restoration or repair of I he
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. H the restoration or
<br />would he lessened, the insurance proceeds shall be applied to the sums
<br />repair is not economically feasible or Lender's security
<br />secured by this Security Instrument. whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br />has offered to settle a claim, then
<br />Property. or does not answer within 30 days a notice from la•nder that the insurance carrier
<br />lender may use the proceeds to repair or restore the Properly or to pay sums secured
<br />Lender may collect the insurance proceeds,
<br />by this Security Instrument. whether or not then (Inc. The 30 -day period will begin when the notice is given.
<br />to principal shall notextend or postpone
<br />Unless Lender and Borrower otherwise agree in writing, any applicationuf proceeds
<br />the due date of the monthly payments referred to in paragraphs I and 2 or change the amou nt of the payments. If under paragraph
<br />resulting from damage to the
<br />19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceedings
<br />lender to the extent of the sums secured by this Security Instrument immediately
<br />Property prior to the acquisition shall pass to
<br />prior to the acquisition.
<br />6. Preservation and Maintenance of Property; leaseholds. Borrower shall not destroy, damageor substantially change
<br />a leasehold, Borrower shall
<br />the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on
<br />if Borrower acquired fee title to the Property, the leasehold and fee title shall not
<br />comply with the provisions of the lease, and
<br />merge unless Lender agrees to the merger in writing.
<br />Protection of Lenders Rights in the Property: Mortgage Insurance. If Borrower tails to perform the covenants and
<br />in
<br />7.
<br />agreements contained in this Security Instrument, or there is a legal, proceeding that may significantly affect tenders rights
<br />laws of regulations), then lender may
<br />the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce
<br />for is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br />do and pay whatever
<br />include paying any Aunts secured by a Lien which has priority over this Security Instrument, appearing in court, paying
<br />under this paragraph
<br />reasonable attorney's tees and entering on the Property to make repairs. Although lender may take action
<br />7, Lender does not have to do so.
<br />Any amounts disbursed by tender under this paragraph ?shall becoiae additional debt of Borrower secured by this Security
<br />from the date of
<br />Instrument, Unless Borrower and Lender ultree to other terms of pavment. these amounts shall liar interest
<br />from lender to Borrower requesting paytnent.
<br />diabur#ment at the Note rate and ,hall be payable. with interest, upon notice
<br />of making the loan siK•urtni by this Security Instrument. Harrower shall
<br />i
<br />If fender retlutrod mortgage insurance ss a condition
<br />to maintain the insurance in effect until such time as the requirement for the ivaurancc termijiatcs in
<br />pay the premiumsrequiml
<br />accordance with It+irrower', and Lender's written xgreeinent or applicable law
<br />upon and o,vpccio, nw of the 1'nopert> i c odor abaft } i.v
<br />tt. lnatrectiolw, Iender or its & tent may make reaw+rnatde entrioN.
<br />Harrower notice at tRr tame of or prior to an anstity lion ,t sx ifying rra:ajnahi, ea isr fur t }er in t "•o °tiuro
<br />.Lou Mri - 66-11"
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