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<br />84-- 005563
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<br />Lender pays Borrower inlerest 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 10 Borrower, without charge, an annual accounting of the Funds showing credits and debits ~o the Funds and the
<br />purpose for which each denit to Ihe Funds was made, The Funds are pledged as addilional security for the sums secured by
<br />this Security Inslrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payrpents of Funds payable poor to
<br />Ihe due dates of the escrow ilems, shall exceed Ihe amount required to pay the escrow items when due, the excess shaH be,
<br />at Borrower's optron, either promptly repard 10 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 nece~sary 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 lime of
<br />applicalion 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 Lende}; under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges duewi~ 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 ;Jerson 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 wrilillg to the payment of the obligation secured by the lien in a manner acceptable 10 Lender; (b) contests in good
<br />faith the lien by. or defends against enforcemenl 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 t:" -:'operty; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to ti; ,< .-. .ui'lty Instmffi;:,t, If Lender determines that any part of
<br />the Property is subject to a lien which may -tta:n priorit; 'r this Security Instrume!)t, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall salisfy 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 existing or hereafter erected on Ihe ProperlY
<br />Insured against loss by nre. hazards induded 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 be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably wlthhe1d,
<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 recetpls of paid premiums and renewal notices. In the evenl of loss, Borrower shall gIve prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss 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 />reslOranon or repair is not economicaUy feasibie or Lender's securily would be lessened, the insurance proceeds shall be
<br />applied to the SumS :>C".:ured by this Security Insrrument~ whether or not [hen due, with any excess paid [0 Borrower. If
<br />Borrower abandons the Property, or does nol answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to sell Ie 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 Secunty Instrument, whether or nO! then due, The 30-day period will begin
<br />when the notlce is given.
<br />Unless Lender and Borrower otherWIse agree in writing, any application of proceeds to principal shall not exlend or
<br />postpone the due date of the ;nonthly payments referred to in paragraphs I and 2 or change the amount oflhe 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 eXlent of the sums secured by this Security
<br />Instrument immediately prIor to the acqmsition.
<br />6. Presenation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waSle, If this Security Inslrument is on a leasehold.
<br />Borrower shall comply with the pro,.,sions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall nol 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 />covenants and agreements contamed in this Security Instrument, 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 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 pnonty over this Secunty
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under thIS paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additIOnal debt of Borrower secured by tIllS
<br />Secunty Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear "lterest from
<br />the date of disbursement at the Note rate and shall be payable, WIth mteres!. upon notIce from lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a conditIon 01 maKmg tne loan secured by thIS Security Instrument,
<br />Borrower shall pay the premiums required to maintain the msurance in effect until such time as the requirement for the
<br />insurance termmates In accordance with Borrower's and Lender's written agreement or applicable law.
<br />8, Inspection, Lender or ItS agent may make reasonable entries upon and II1spections of the Property. Lender
<br />shall give Borrower notice at the time of or prior to all inspection speCIfying reasonable cause for the inspection.
<br />9, Condemnation, The proceeds of any award or claim for damages, d,rect or consequential. in connection WIth
<br />any condemnation or other takIng of any part of the Property, or for conveyance In lIeu l)f wndemnatlon, are hereby
<br />assigned and shall be paId to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the ,unlS ,ecured by thIS S<'Cunty
<br />Instrument, whether or not then due, wIlh allY excess paId to Borrower. In the event of a partial iaklllg "i Ihe rropeny.
<br />unle~s Borrower and Lender otherWIse agree In wnling. the ~urns s~cufed by {hIS Secunty lnslfmnent shall be reduc~d b:
<br />the amount of the procet:C., multiplied by the follOWIng fral:tlon: (a) the total :HIlounl ,Jf the sunlS secured mun;:\.i!att"i!
<br />before the taklng, dl\'lded hy ib} the fair rnark~t 'value of r.he Property Immediately Defore the taking. .\u\ balance ...hall be
<br />raid tn Borrower.
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