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<br />200606973
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<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 principal of
<br />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 Lender on
<br />the first day of each month, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over
<br />this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or
<br />property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, ifany; and (f) any sums
<br />payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums.
<br />These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a
<br />lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures
<br />Act of 1974 as amended from time to time, 12 V.S.C. SS 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser
<br />amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the
<br />amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance
<br />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,
<br />if 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 connectio ith this loan, unless applicable law
<br />provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lend ot be required to pay Borrower
<br />any interest or earning, on the Funds. Borrower and Lender may agree in writing, however, that jt1.~l!rest sh be paid on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds; showing credits anodebits to the Funds and the purpose for
<br />which each debit to the Funds was made. The Funds are pledged as additional security for red by this Security Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by appli shall account to Borrower for the
<br />excess Funds in accordance with the requirements of applicable law. If the amount3r er at any time is not sufficient
<br />to pay the Escrow Items when due, Lender may so notify Borrower in writing, and;iIls case Borro I pay to Lender the amount
<br />necessary to make up the deficiency. Borrower shall make up the deficiency' 0 more than twelve mort payments, at Lender's sole
<br />discretion.
<br />Upon payment in full of all sums secured by this Security Instrutn. .~, der sha promptly refund to B
<br />Lender. If, under paragraph 21, Lender shall acquire or sell the Prop~y, ~Her, prior to acquisition or sale 0
<br />any Funds held by LenHer at the time of acquisition or sale as a credit against the sums sec this Security Instrum
<br />3. Application of Payments. Unless applicable law proviHes otherwis Ipa 'ved by LenHer un paragraphs I and 2
<br />shall be applied: first, to any prepayment charges due unHer the Note; second, to nts payable under paragraph 2; thirH, to interest due;
<br />fourth, to principal due; and last, to any late charges due unHer the Note.
<br />4. Charges, Liens. Borrower shall pay all taxes, ents, charges, fines an sitions attributable to the Property, which may
<br />attain priority over this Security Instrument, and leasehol t~,or ground rents, if: Borrowr shall pay these obligations in the
<br />manner proviHed in paragraph 2, or if not paid in that m rrower shall pay them on tilIlf: directly to the person oweH payment.
<br />Borrower shall promptly furnish to Lender all notices of obe' under this paragraph. If Borrower makes these payments
<br />directly, Borrower shall promptly furnish to LenHer receipts evi g the
<br />Borrower shall promptly discharge any lien which has pri 0 ent unless Borrower: (a) agrees in writing to
<br />the payment of the obligation secured in a manner acc LenHer; (b sts in gooH faith the lien by, or defends against
<br />enforcement ofthe lien in, legal pr?~,. in the Lender's 0 operate to preVent the enforcement ofthe lien; or (c) secures from
<br />the holder of the lien an agreementsatis act Her subordina e lien to this Security Instrument. If LenHer determines that any
<br />part of the Property is subj a lien, whic y attain priority this Security Instrument, Lender may give Borrower a notice
<br />iHentifying the lien. Borro . sfy the Ii take one or more of e ions set forth above within 10 day, of the giving of notice.
<br />5. Hazard or Property Inlluran~~. Bo shall keep the im ents now existing or hereafter erected on the Property insured
<br />against loss by fire, hazarHs included within th d coverag anH any other hazards, incluHing floods or flooding, for which
<br />Lender requires ins . s insurance e mal ounts and for the periods that LenHer requires. The insurance carricr
<br />providing the i osen by subject to LenHer's approval, which shall not be unreasonably withheld. If Borrower
<br />fails to mainta' overage ay, at Lender's option, obtain coverage to protect LenHer's rights in the Property in
<br />accordan~,~iiii~th paragraph 7.
<br />,AlIb:J~~rance policies and
<br />the right tohq!c.l.the policies and rene
<br />renewal noti e event of loss, Bo
<br />if not made pro Borrower.
<br />Unless LenH orrower oth agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
<br />damaged, if the resto r repair is nomically feasible and Lender's security is not lessened. If the restoration or repair is not
<br />economically feasible or L . would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not any excess paiH to Borrower. If Borrower abanHons the Property, or does not answer within 30
<br />days a notice from Lender that surance carrier has offereH to settle a claim, then Lender may collect the insurance proceeds. Lender
<br />may use the proceeds to repair or store the Property or to pay sums secureH by this Security Instrument, whether or not then due, the 3~-day
<br />perioH will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extenH or postpone the due
<br />date of payments referred to in paragraphs I and 2 or change the amount of the payments. if under paragraph 21 the Property is acquired by
<br />Lender, Borrower's right to any insurance policies and proceeds resulting from Hamage to the Property prior to the acquisition shall pass to
<br />Lender to the extent ofthe sums secured by this Security instrument immediately prior to the acquisition.
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<br />Funds helH by
<br />y, shall apply
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<br />Ie to Lender and shall include a standard mortgage clause. Lender shall have
<br />If Lend uires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss
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