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200500724
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the
<br />Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the
<br />title to the Property against all claims and demands, subject to any encumbrances of record.
<br />Borrower and Lender covenant and agree as follows:
<br />Payment of Principal and Interest; Other Charges. Borrower shall promptly pay when due the principal of and interest on the debt
<br />owed under the Contract and any late charges or any other fees and charges due under the Contract.
<br />Applicable Law. As used in this Security Instrument, the term "Applicable Law" shall mean all controlling applicable federal, state
<br />and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable
<br />final, non - appealable judicial opinions.
<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain
<br />priority over this Security Instrument, and leasehold payments or ground rents, if any. At the request of Lender, Borrower shall
<br />promptly furnish 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 writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br />against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or
<br />(c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for
<br />which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably
<br />withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's
<br />rights in the Property in accordance with section titled Protection of Lender's Rights in the Property.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the
<br />right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
<br />damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this
<br />Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not
<br />answer within the number of days prescribed by Applicable Law as set forth in a notice from Lender to Borrower that the insurance
<br />carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The period of time for Borrower to answer as
<br />set forth in the notice will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due
<br />date of the payments due under the Contract or change the amount of the payments. If under the section titled Acceleration; Remedies
<br />the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property
<br />prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the
<br />acquisition.
<br />Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in
<br />default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in
<br />forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest.
<br />Borrower may cure such a default and reinstate, as provided in section titled Borrower's Right to Reinstate, by causing the action or
<br />proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in
<br />the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall
<br />also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to
<br />Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Contract. If this
<br />Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />© Compliance Systems. Inc. (2003) BEDE -93E4 - 2004.11.68 www.compliancesystems.comr.:6=
<br />Consumer Real Estate - Security Instrument DL2036 Page 2 of 6 800 - 968 -8522 - Fax 616 -956 -1868
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