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<br />84 - 005538
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<br />Lender pays Borrower interest on the Funds and applicable law permils 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 inlerest to be paid, Lender shall not be required to pay Borrower any interesl or earnings on the Funds, Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits t.:llhe Funds and the
<br />purpose for which each dehit to the Funds was made, The Funds arc pledged as additional security for the sums secured by
<br />this Security Instrument,
<br />If the amount of the Funds held by Lender, together with the future monthly payr:nents of Funds 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 />amounl of the Funds held by Lender is not sufficient to pay Ihe escrow items when due, Borrower shall pay 10 Lender any
<br />amount necessary 10 make up Ihe deficiency in one or more payments as required by Lender,
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shali 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 immedialely 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 lale charges due under the NOle; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, 10 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 10 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 10 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 enforcemenl of the lien or forfeilUre of any part of the "operty; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to th> ;" ',In'y Instnlmc'~" If Lender determines that.any part of
<br />the Property is subject to a lien which may ~~tai'l priority 'I Ihis 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 lOdays
<br />of the giving of notice,
<br />5. 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 lerm "extended coverage" and any other hazards for which Lender
<br />requires insurance, This insurance shall be maintained in the amounlS 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 wilhhe1d,
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage dause.
<br />Lender shall have the right 10 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 nOI 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 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 B.-?rrow-er~- If
<br />Borrower abandons the Property. or does nOI answer wilhin 30 days a nOlice from Lender that the insurance carrier has
<br />offered to seltle a c1aim~ then Lender may collect the insurance proceeds, Lender may use the proceeds 10 repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due, The 3O-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 pay men IS 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 resulting
<br />from damage to the Property prior to the acquisilion shall pass to Lender to the exlent of the sums secured by Ihis Security
<br />instrument immediatcIy Pftt,)1 tU {he a-';4uislliutl.
<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 Ihe provisions of the lease. and if Borrower acquires fee litle 10 Ihe Property. the leasehold and
<br />fee litle 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 fails to perform the
<br />covenanlS and agreemenls contained in this Security Inslrument. or there is a legal proceeding thai may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnalion or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect Ihe 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 />Inslrument. appearing in court, paying reasonable altorneys' fees and entering on the Property to make repairs, Although
<br />Lender may take aClion under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debl of Borrower secured by'this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of paymenl, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest. upon notice from Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of malong toe toan secured by this Security Instrument.
<br />Borrower shall pay the premiums required 10 main lain the insurance in effect until such lime as the requirement for the
<br />insurance terminates in accordance with Borrower's and Lender's wrilten agreement or applicable law,
<br />8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Properly, Lender
<br />shallllive Borrower nOlice atlhe lime of or prior to an inspection specifying reasonable cause for the inspection,
<br />- 9. Condemnation, The proceeds af any award or claim for d~m~ges, direcI or consequential. in connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnatIOn, are hereby
<br />assigned and shall be paid to Lender. . '
<br />In the event of a tOlal taking of the Property, the proceeds shall be applied to the sums secured by thiS Secunty
<br />Instrument. whether or not then due. with any excess paid to Borrower. In the event of a partial takmg of the Property,
<br />unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by
<br />the amount of the proceecs multiplied by the following fraction: (a) the tolal amount of the sums secured Immediately
<br />before the takmg, divided by (bi the fair market value of the Properly immedialely before the taking, Any balance shall be
<br />paid to Borrower.
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