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<br />86 1075?5
<br />UNIFORM C0vEN,%NTS Borrower and Lender covenant and agree as fort lows:
<br />I. Payment of Pttitsci Wan! lntert,nr4 PnPssymew and Late Chargdt, Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />+' Ftraie for Taws tttal haaaraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender tat the day monthly payments arc due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
<br />one- twelfth of- (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />iasdnotd payments or ground trots on the Property, 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 data and rrattonabkestimates of future escrow items.
<br />The Funds shall be held Man institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency iineluding 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 Ftmds, analyzing the account or verifying the escrow items, unless
<br />Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a chair 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 be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />SW 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 Instrwneni.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Fonds payable prior to
<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 any
<br />amount necessary to make up thedeficiency 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 PaynnewilL 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— to interest due; and last, to principal due.
<br />4, Charges Leas. 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 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 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 lien which has priority over this Security 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) contests in good
<br />faith the lien by, or defends against enforcement of the Iien 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 the lien to this Security Instrument. If Lender determines that any pan 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 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 .. exte:nded 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. 73ie
<br />insurance carrier providing the insurance shall be 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 to Lender
<br />ail 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 snake Proof of loss if not made promptly by Borrower.
<br />Unless Lawler and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged if the restoration or repair is economically feasible and Lender's security is not lessened. if the
<br />restoration or repair is not economically feasible or Lenders security would be lessened, the insurance proceeds shall tie
<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 Properly 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 Lowder 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 acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<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 />a' Prue ""on ssd -Maiattnnnce of pfOP W- Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If 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 tit;c ahali not merge unless Lender agrees to the merger in writing.
<br />7• Pri teaYiow of LeatWs RW is in the Property; Mortgage insurance. If Borrower fails to perform the
<br />CO-11"Isand agreemmIs contained in this Security Instrument, or there is a legal proceeding that may significantly aftcrt
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). then Lender may do and lay for whatever is necessary to protect the value of the Properly and Lender's rights
<br />m the Properly, i.endcrs aciions may include paying any sums secured by a hen which has priority over this Securtiv
<br />insttutnan, appearing in court, paying reasonable attorneys fees and entering on the Property to make reNirs Atihougit
<br />Lewder may take action under this paragraph 7. Lender does not have to do so,
<br />Any amounts disbursed by Lender under this paragiaptt 7 shall become additional debt of Borrower secured by t fits
<br />See Ural y Instrument Unless Burrower and Lender agree it) tit tier terms cif ryayrnent. these aniounis shall bear otictcf ft, ni
<br />the tiatc nil' dishurseinenl at the Note rite :rid shall he Payahle, with interest. ur—i notice from Lender to floc rower
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