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200011171
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") for: (a) yearly
<br />taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance
<br />premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in
<br />accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called
<br />"Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender
<br />for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement
<br />Procedures Act of 1974 as amended from time to time, 12 U.S.C. 2601 et seq. ( "RESPA "), unless another law that applies to
<br />the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in the amount not to exceed the lesser
<br />amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures
<br />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
<br />(including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay
<br />the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br />account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender
<br />to make such a charge. However, Lender may require Borrower to pay a one -time charge for an independent real estate tax
<br />reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement
<br />is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on
<br />the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to
<br />Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for
<br />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
<br />for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any
<br />time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower
<br />shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than
<br />twelve monthly payments, at the Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale
<br />of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by
<br />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 any prepayment charges due under the Note; second, to amounts payable under
<br />paragraph 2; third, to interest 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, tines and impositions attributable to the Property
<br />which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay
<br />these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time
<br />directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this
<br />paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br />payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the
<br />lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br />enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br />this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over
<br />this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or
<br />more of the actions set forth above within 10 days of the giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br />floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br />that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br />which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's
<br />option, obtain coverage to protect Lender's rights in the 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
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />DOCUiNE2 Page 2 of 6 Form 3028 9/90
<br />DOCUINE2.VTX 05/02/2000
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