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<br />200709774
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<br />Secured Indebtedness. The debt evidenced by the Note and which is secured by this Security Instrument is
<br />subject to the provisions of 12 CFR 226.32. Borrower acknowledges that Borrower has received the disclosures
<br />prescribed by 12 CFR 226.32 at least three business days prior to the execution of the Note and this Security
<br />Instrument, or as otherwise required by 12 CFR 226.31. Borrower and Lender fiuther acknowledge and agree that
<br />this Security Instrument will secure additional debt subject to 12 CFR 226.32 only if Lender satisfies the necessary
<br />requirements imposed on such debt imposed by 12 CFR 226.32 and Applicable Law.
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<br />Borrower and Lender covenant and agree as follows:
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<br />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 IDld any prepayment and late charges duc under thc
<br />Note.
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<br />Applicable Law. As used in this Stx.'urity Instrument, the term "Applicable Law" shall mean all controlling
<br />applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (tIlat have
<br />the effect of law) as well as all applicable final, non-appealable judicial opinions.
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<br />Funds for Taxes and Insurance. At Lender's request and subject to Applicable Law, Borrower shall pay to
<br />Lender on the day periodic payments are due lUlder the Note, lUltil the Note is paid in full, a sum ("Funds") for: (a)
<br />yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)
<br />ycarly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance
<br />premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f)
<br />IDlY sums payable by Borrower to Lender, in accordance with the provisions of the paragraph titled Mortgage
<br />Insurance, 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 IDl amount not to exceed the maximum amount a lender for a
<br />federally related mortgage loan may require for Borrower's escrow account under tile federal Real Estate
<br />Settlement Procedures Act of 1974 as amended from time to time, 12 V.S.C. Section 2601 et seq. ("RESPA"),
<br />lUlless another Applicable Law that applies to the FlUlds sets a lesser amooot. If so, Lender may, at any time,
<br />collect and hold Funds in an amolUlt not to exceed the lesser amount. Lender may estimate the amount of Funds
<br />due on the basis of current data IDld reasonable estimates of expenditures of future Escrow Items or otllerwise in
<br />accordance with Applicable Law.
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<br />The Foods shall be held in an institution whose deposits arc 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
<br />FlUU!S to pay the Escrow Items. Lender may not charge Borrower for holding IDld applying the Funds, annually
<br />analyzing tile escrow account, or verirying the Escrow Items, unless Lender pays Borrower interest on tile Funds
<br />and Applicable Law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-
<br />time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless
<br />Applicable Law provides otherwise. Unless ,m agreement is made or Applicable Law requires interest to be paid,
<br />Lender shall not be required to pay Borrower IDlY interest or earnings on the Funds. Borrower and Lender may
<br />agree in writing, howevG'f, that interest shall be paid on the FlUlds. Lender shall give to Borrower, without charge,
<br />an annual accounting of the Funds, showing credit~ and debit~ to the Funds and the purpose lor which each debit to
<br />the FlUlds was made. The Funds arc pledged as additional security for all SUll1~ secured by this Security Instrument.
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<br />lfthe Funds held by Lender exceed the amolUlts permitted to be held by Applicable Law, Lender shall account to
<br />Borrower for the excess Funds in accordance with the requirements of Applicable Law. If the amOlUlt of the FlUlds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in
<br />writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower
<br />shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
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<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refiUld to Borrower
<br />IDlY FlUlds held by Lender. If, under the section titled Acceleration; Remedies, Lender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Property, shall apply IDlY FlUlds held by Lender at the time
<br />of acquisition or salc as a credit against the sums secured by the Security Instrument.
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<br />('J 2004.2007 Copyright Compliance S~t""", I"", 8C9C-F429 - 2007,01.201
<br />COlblurn.orReaJ Estate - Secudty Instrul11(:Tlt 01....2036
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