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<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 law
<br />requires interest to be paid. Lender shall not be required to pay Borrower 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 additional security
<br />this Security Instrument. y for the sums secured by
<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, shall exceed the amount required to pay the esc items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower 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 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 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 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 the lien to this Security Instrument. If Lender determines that any part
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower of 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 />5- Hazard Insurance. Borrower shall keep the improvements now o "-,ng or hereafter erecte on the Proy
<br />insured against loss by fire, hazards included within the term -extended coverage- and any other hazards d for which Lendepert r
<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 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 />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 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 Lender's secuniv would he lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Se '
<br />Borrower abandons the Property curtly Instrument, whether or not then due, with any excess paid to Borrower. if
<br />. or does -to( answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Len-der may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to Pay sums secured by this Sccurltv 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 the due date of the monthly payments referred to n paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. 11
<br />from damage to the Property prio ' rrower's right to any insurance policies and proceeds resulting
<br />r to the acquisition shall pass to Lender to the extent of the sums secured b this Security
<br />Instrument immediately prior to the acquisition. y
<br />6• Preservation and Maintenance of Property; 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 r
<br />fee title shall not merge unless Lender agrees to the merger in writing Property, the leas!hold and
<br />covenants and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect
<br />bankruptcy, probate, for 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 sums secured by a lien which has priority Over this Security
<br />Instrument, appearing in court. paving reasonable attorneys' fees and entering on the Property to make repairs. Althou
<br />Lender may rake action under this paragraph 7. Lender does not have to do so, k gh'
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional lebt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear interest from
<br />the date of disbursement at the Note ratr and shall be payable, with interest• uPon'tionce from Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the 1041111 secured by this Security Instrument,
<br />Borrower shall pay the Premiums required to maintain the insurance in effect until such time as the requirement for the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applivabic law,
<br />#- Inspection. Lender Or its agent may make reasonable entries upon and inspections of the Property. Lender
<br />shall give Borrower notice at the time Of or prior to an inspection specifying reasonable cause for the Inspection.
<br />9- C04diltmillation, The Proceeds ol'anY award or claim for damages, direct or consequential, in connection tit
<br />any condemnation or other taking Of any part of the Property. or for conveyance in lieu of condemnation, nat ()I,, I, I c whit
<br />k
<br />AN41ped and shall be paid to Lender, arc I ret"N
<br />In the event of a total raking oftlic PfOPettv- the pi-meeds shall he applied III the 'mni% sectored �,�
<br />Inurument. whether fr rj,t ille, with i,11Y excess paid to Borrower In the event M .1 partial Taking . 1111� seturliN
<br />unless fk�rrn%rr �Illd agirre III Wrte , ,I Olv PlopV11%.
<br />'tic imwrit ,i �,e t,K:cr4,s Irl,lill Wig, �hc. ,urn.% %rcuircl tv this �urtt� 'hall bc l'-dil-'d h%
<br />ph-rd by the following traLlIoll 1411 the 1.11 'IrTioutil Thr ,rims w, med
<br />I-fore (lie lakmor- ,it iced Ifiv iJtr rtiatkci �jltje 4 the Property mlwt')
<br />i rdMirN �,vforr
<br />"316 Kur-,A,-�
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