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<br />200800934
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<br />Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due tlle
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the
<br />Note.
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<br />Applicable Law. As used in this Security Instrument, the term "Applicable Law" shall mean all controlling
<br />applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that 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 tUlder the Note, tUltil the Note is paid in full, a sum ("FtUlds") for: (a)
<br />yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)
<br />yearly leasehold payments or grOl.Uld rents on tl1e 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 />any sums payable by Borrower to Lender, in accordance witl1 the provisions of the paragraph titled Mortgage
<br />Insurance, in lieu of tlle payment of mortgage insurance premiums. These items are called "Escrow Items."
<br />Lender may, at any time, collect and hold Funds in an amoWlt not to exceed the maximum amount a lender for a
<br />federally related mortgage loan may require for Borrower's escrow accoWlt tUlder tl1e 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 />unless atloth(,'T Applicablc Law that applies to the Funds sets a kSSe'f amount. If so, Lmder may, at any time,
<br />collect and hold Funds in an amoUllt not to exceed the lesser amOUllt. Lender may estimate tlle amount of Funds
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
<br />accordiUlce with Applicable Law.
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<br />The FtUlds shall be held in iUl institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including Lend(,'f, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />FtUlds to pay tlle Escrow Items. Lender may not charge Borrower n)r holding and applying the Funds, annually
<br />analyzing the escrow account, or veri lYing the Escrow Items, unless Lender pays Borrower interest on the 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, wdess
<br />Applicable Law provides otherwise. Unless an agreement is made or Applicable Law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the FtUlds. Borrower iUld Lender may
<br />agree in writing, however, that interest shall be paid on the FtUlds. Lender shall give to Borrower, without charge,
<br />an annual accounting oftl1e Funds, showing credits and debits to the Funds and the purpose lor which each debit to
<br />tl1e FWlds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
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<br />If the Funds held by Lender exceed the amounts permitted to be held by Applicable Law, Lender shall accOlUlt to
<br />Borrower for tlle excess Funds in accordance witl1 tl1e requirements of Applicable Law. Iftl1e amount of the Funds
<br />held by Lender at any time is not sufficient to pay tlle 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 tl1iUl 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 refund to Borrow(,1'
<br />any FWlds held by Lender. If, under the section titled Acceleration; Remedies, Lender shall acquire or sell the
<br />Propeny, Lender, prior to the acquisition or sale ofthe Property, shall apply any FWlds held by Lender at the time
<br />of acquisition or sale as a credit against the sums secured by the Security Instrument.
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<br />Application of Payments. Unless Applicable Law provides otherwise, all payments received by Lender shall be
<br />applied: first, to any prepayment charges due Ullder the Note; second, to amoUllts payable Ululer the section titled
<br />Funds for Taxes and Insurance; tl1ird, to interest due; fourth, to principal due; and last, to any late charges due
<br />ooder the Note.
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<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instr\Ullent, and leasehold payments or b'l'ound rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for Taxes and Insurance, OT
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<br />Q 2004.2007 Copyright Complianc" System.. 11,", 8C9C.B99S . 2007,01.201
<br />COI1S\uncrReaJ Esta.t.~. Security IUlltfUffiO:nt DL2036
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