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2C.:O0774r
<br />ground rents on the Property, if any: (c) yearly hazard or property insurance premiums; (d)
<br />yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f)
<br />any sums payable to Borrower to Lender, in accordance with the provisions of paragraph 8, in
<br />lieu of the payment of mortgage insurance premiums. These items are call "Escrow Items."
<br />Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum
<br />amount a lender for a federally related mortgage loan may require for Borrower's escrow
<br />account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time
<br />to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless another 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
<br />exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current
<br />data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance
<br />with applicable law.
<br />The funds hall be held in an institution whose deposits are insured by a federal agency,
<br />instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal
<br />Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not
<br />charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br />verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable
<br />law permits Lender to make such a charge. However, Lender may require Borrower to pay a
<br />one-time charge for an independent real estate tax reporting service used by Lender in
<br />connection with this loan, unless applicable law provides otherwise. Unless an agreement is
<br />made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower
<br />any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that
<br />the interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual
<br />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
<br />by this Security Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by applicable law,
<br />Lender shall account to Borrower for the excess Funds in accordance with the requirements of
<br />applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay
<br />the Escrow Items when due, Lender may so notify Borrower in writing, and in such case
<br />Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall
<br />make up the deficiency in no more than twelve monthly payments, at Lender's sold discretion.
<br />Upon payment in full or all sums secured by this Security Instrument, Lender shall
<br />promptly refunded to Borrower and Funds held by Lender. If, under paragraph 21, Lender shall
<br />acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply
<br />and Funds held by Lender at the time of acquisition or sale as a credit against the sums secured
<br />by this Security Instruments.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments
<br />received by Lender under paragraph 1 and 2 shall be applied: first, to any prepayment charges
<br />due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth,
<br />to principal due; and last, to any late charges due under Note.
<br />4. Charge; Liens. Borrower shall pay all taxes, assessments, charges, fines, and
<br />impositions attributable to the Property which may attain priority over this Security Instrument,
<br />and leasehold payments or ground rents, in any. Borrower shall pay these obligation in the
<br />manner, Borrower shall pay these obligation in the manner provided in paragraph 2, or if not
<br />paid in the manner, Borrower shall pay these obligations in the manner provided in paragraph 2,
<br />or if not paid in that manner, Borrower shall pay them on time directly to the person owned
<br />payment. Borrower shall promptly furnish to Lender all notice of amounts to be paid under this
<br />paragraph. If Borrower makes these payment directly, Borrower shall promptly furnish to Lender
<br />all notices of amounts to be paid under this paragraph. If Borrower makes the payments
<br />directly, Borrower shall promptly furnish to Lender receipts evidencing the payment.
<br />Borrower shall promptly discharge any lien which has priority over this Security
<br />Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the
<br />lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against
<br />enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent
<br />the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to
<br />Lenders subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender
<br />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 giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing
<br />on the Property insured against loss by fire, hazards included within the term "extended
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