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200410177
<br />Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions
<br />of Section 10. These items are called "Escrow Items." At origination or at any time during the
<br />term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments,
<br />if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item.
<br />Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section.
<br />Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's
<br />obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation
<br />to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in
<br />writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the
<br />amounts due for any Escrow Items for which payment of Funds has been waived by Lender and,
<br />if Lender requires, shall furnish to Lender receipts evidencing such payment within such time
<br />period as Lender may require. Borrower's obligation to make such payments and to provide
<br />receipts shall for all purposes be deemed to be a covenant and agreement contained in this
<br />Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is
<br />obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the
<br />amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such
<br />amount and Borrower shall then be obligated under Section 9 to repay to Lender any such
<br />amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice
<br />given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all
<br />Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit
<br />Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the
<br />maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds
<br />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,
<br />instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so
<br />insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br />Items no later than the time specified under RESPA. Lender shall not charge Borrower for
<br />holding and applying 'the Funds, annually analyzing the escrow account, or verifying the Escrow
<br />Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to
<br />make such a charge. Unless an agreement is made in writing or Applicable Law requires interest
<br />to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on
<br />the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as
<br />required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account
<br />to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held
<br />in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and
<br />Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with
<br />RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and
<br />Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with
<br />RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly
<br />refund to Borrower any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
<br />attributable to the Property which can attain priority over this Security Instrument, leasehold
<br />payments or ground rents on the Property, if any, and Community Association Dues, Fees, and
<br />Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in
<br />the manner provided in Section 3.
<br />Initials:`
<br />�® 6A(NE) c0005i A106A05NE (11/02) Pap. 5 or 16 Form 3028 1/01
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