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202500842
<br />GRANTOR COVENANTS that Grantor is lawfully seised of the estate hereby conveyed and has the right to grant
<br />and convey the Property and that the Property is unencumbered, except for encumbrances of record. Grantor
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record.
<br />Grantor and Lender covenant and agree as follows:
<br />PAYMENT OF PRINCIPAL AND INTEREST; PREPAYMENT AND LATE CHARGES. Borrower shall
<br />promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and
<br />late charges due under the Note.
<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.
<br />FUNDS FOR TAXES AND INSURANCE. At Lender's request and subject to Applicable Law, Borrower shall
<br />pay to Lender on the day periodic payments are due under the Note, until the Note is paid in full, a sum ("Funds")
<br />for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the
<br />Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property
<br />insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any;
<br />and (f) any sums payable by Borrower to Lender, in accordance with the provisions of the paragraph titled
<br />MORTGAGE INSURANCE, in lieu of the payment of mortgage insurance premiums. These items are called
<br />"Escrow Items." 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 account under the
<br />federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et
<br />seq. ("RESPA"), unless another Applicable Law that applies to the Funds sets a lesser amount. If so, Lender may,
<br />at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the
<br />amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items
<br />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 Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying 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
<br />one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan,
<br />unless Applicable Law provides otherwise. Unless an agreement is made or Applicable Law requires interest to be
<br />paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender
<br />may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which
<br />each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this
<br />Security Instrument.
<br />If the Funds held by Lender exceed the amounts 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 amount of the
<br />Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify
<br />Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the
<br />deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole
<br />discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the section titled ACCELERATION; REMEDIES, Lender shall acquire or
<br />sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at
<br />the time of acquisition or sale as a credit against the sums secured by the Security Instrument.
<br />APPLICATION OF PAYMENTS. Unless Applicable Law provides otherwise, all payments received by Lender
<br />shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under the
<br />TruStage Compliance Solutions 2004-2024 a4546653*9dde89fa - 2024.29.11.2
<br />Page 2 of 8 Consumer Real Estate - Security Instrument DL2036
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