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<br />200701010
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<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and
<br />fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security
<br />Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and
<br />convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will
<br />defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants witll limited
<br />variations by jurisdiction to constitute a uniform security instrument covering real property.
<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 ilie day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes
<br />and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments
<br />or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums,
<br />if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance witIl
<br />the provisions of paragraph 8, in lieu of the payment of mortgage- insurance premiums. These items are called "Escrow Items."
<br />Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally
<br />related mortgage loan may require for Borrower's escrow account under the federal Rea] Estate Settlement Procedures Act of
<br />]974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless anotller law that applies to the Funds
<br />sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br />Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future
<br />Escrow Items or oilierwise in accordance witll 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 tIle Funds to pay the
<br />Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing tIle escrow account, or
<br />verifying the Escrow Items, unless Lender pays Borrower interest on ilie Funds and applicable law permits Lender to make such
<br />a charge. However, Lender may require Borrower to pay a one-time charge for an independent rea] estate tax reporting service
<br />used by Lender in connection wiili this loan, unless applicable law provides otherwise. Unless an agreement is made or
<br />applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on ilie Funds.
<br />Borrower and Lender may agree in writing, however, iliat interest shall be paid on the Funds. Lender shall give to Borrower,
<br />without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
<br />debit to the Funds was made. The Funds are pledged as additional security for all sums secured by thisSecurity 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 wiili 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 ilie amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than
<br />twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by tllis Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell ilie 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 paragraphs
<br />1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2;
<br />third, to interest due; fourili, 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
<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 iliat manner, Borrower shall pay them on time directly
<br />to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph.
<br />If Borrower makes these payments directly, Borrower shall promptly tirnish 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
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faiili the lien
<br />by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br />enforcement of ilie lien; or (c) secures from ilie holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br />this Security Instrument. If Lender determines iliat 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 ilie lien. Borrower shall satisfy the lien or take one or
<br />more of the actions set forth above wiiliin 10 days of the giving of notice.
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<br />. .GRINE) 192121.04
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<br />Pag. 2 of 5
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<br />Form 3028 9/90
<br />Initials: ~ 0
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