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<br />200700643
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<br />Instrument shall be made in U.S. currency. However, if any check or other instrument received by
<br />Lender as payment under the Note or this Security Instrument is rcturned to Lender unpaid, Lender may
<br />require that any or all subsequent payments due under the Note and this Security Instrument be made in
<br />one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified
<br />check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an
<br />institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic
<br />Funds Transfer.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all
<br />payments accepted and applied by Lender shall be applied in the following order of priority: (a) fees and
<br />charges due under thc Note; (b) interest due under the Note; and (c) principal due under the Note. Such
<br />payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining
<br />amounts shall be applied first to any other amounts due under this Security Instrument, and then to
<br />reduce the principal balance of the Note.
<br />Any application of payments, insurance proceeds, or MiscclIaneous Proceeds to principal due under
<br />the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
<br />attributable to the Property which can attain priority over this Security Instrument, leasehold payments
<br />or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if
<br />any.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
<br />Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner
<br />acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien
<br />in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's
<br />opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only
<br />until such proceedings are concluded; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br />part of the Property is subject to a lien which can attain priority ovcr this Seeurity Instrument, Lender
<br />may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is
<br />given, Borrower shalI satisfy the lien or take one or more of the actions set forth above in this Section 3.
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or
<br />reporting service used by Lender in connection with this Loan.
<br />4. Property Insurance. Borrower shall keep the improvements now existing or hereafter
<br />erected on the Property insured against loss by fire, hazards included within the term "extended
<br />coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and
<br />for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can
<br />change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised
<br />unreasonably. Lender may require Borrower to pay, in connection with this Loan, cither: (a) a one-time
<br />charge for flood zone determination, certification and tracking services; or (b) a one-time charge for
<br />flood zone determination and certification services and subsequent charges each time remappings or
<br />similar changes occur which reasonably might affect such determination or certification. Borrower shall
<br />also be responsible for the payment of any fees imposed by the Federal Emergency Management
<br />Agency in connection with the review of any flood zone determination resulting from an objection by
<br />Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance
<br />coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any
<br />particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
<br />not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk,
<br />hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower
<br />acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of
<br />insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 4
<br />shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear
<br />interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon
<br />notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
<br />right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as
<br />mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and
<br />renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br />premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise
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<br />NE.2030-0906
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