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200007006 DEED OF TRUST
<br />(Continued) Page 2 of 5
<br />premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the
<br />payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an
<br />amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account
<br />under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq.
<br />( "RESPA "), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an
<br />amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable
<br />estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if
<br />Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not
<br />charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender
<br />pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to
<br />pay a one -time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable
<br />law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay
<br />Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the
<br />Funds. Lender 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 for all sums secured by this Security
<br />Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the
<br />excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not
<br />sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the
<br />amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at
<br />Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by
<br />Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply
<br />any Funds held by Lender at the time of acquisition or sale 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 paragraphs 1 and 2
<br />shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest
<br />due; fourth, to principal due; and last, to any late charges due under the Note.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may
<br />attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the
<br />manner provided in paragraph 2, or if not paid in that manner, Borrower ,shall pay them on time directly to the person owed payment.
<br />Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br />directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br />against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c)
<br />secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of
<br />the giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance
<br />carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If
<br />Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br />Property in accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the
<br />right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />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 of the Property
<br />damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Borrower. If-Borrower abandons the Property, or does not answer within 30
<br />days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender
<br />may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The
<br />30 -day period will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due
<br />date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the
<br />Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the
<br />acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall
<br />occupy, est<aplish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument
<br />and shall continue to occupy the .Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
<br />otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are
<br />beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste
<br />on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good
<br />faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or
<br />Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or
<br />proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the
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