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<br />200710356
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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 replaccmcnts and additions shall also be covered by this Sccurity
<br />Instrume;nt. All of the foregoing is referred to in this Security Instrument as the "Propcrty."
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conve;yed and has the right to grant and
<br />convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrowcr 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 eombines uniform covenants for national use and non-uniform covenants with limited
<br />variations by jurisdiction to constitute a uniform security instrumLllt 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 prepaymcnt 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 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; (e) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums,
<br />if any; (e) yearly mortgage insuranee; premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with
<br />thc 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 Real Estate Scttlement Procedures Act of
<br />1974 as amended from time to time, 12 U.s.C. Section 2601 et seq. ("RESPA"), unless another law that applies to the Funds
<br />sets a lesse;r 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 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 Lende;r, if Lender is such an institution) or in any Fcderal Home; Loan Bank. Lender shall apply the Funds to pay the
<br />Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br />verifying the Escrow Items, unless Lender pays Borrowe;r interest on the Funds and applicable law permits Lender to make such
<br />a charge. However, Lender may require Borrowe;r to pay a one-time charge for an independent real cstatc tax rcporting service
<br />used by Lendcr in connection with 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 the Funds.
<br />Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give; to Borrower,
<br />without chargc, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which caeh
<br />de;bit to the Funds was made. The Funds are; pledged as additional security for all sums secured by this Security 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 />twdve monthly payments, at Lender's sole discrt.-1ion.
<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 thc Propcrty, shall apply any Funds held by Lender at thc 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 Lcnder under paragraphs
<br />1 and 2 shall be applied: first, to any prepayment charges due under the Note; sccond, to amounts payable under paragraph 2;
<br />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, fines and impositions attributable to the Property
<br />which may attain priority over this Seeurity 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 directly
<br />to the pcrson 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 furnish to Lcnder reeeipts evidencing the payments.
<br />Borrower shall promptly dischargc 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 Lcnder; (b) contests in good faith 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 the lien; or (e) 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.
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<br />Fonn 3028 9/90
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<br />~ -GR(NE) (9212).04
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