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200410 &23
<br />The Funds shall be held in an institution whose deposits are insured by a federal agony, instrumentality, or eni (including
<br />Lender, if Lender is an institution whose deposits are so insured or in any Federal Home Lcan Bank. Lender shall apply the Funds to
<br />pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the
<br />Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lenderpays Borrower interest on the Funds and
<br />Applicable Law permns Lenderto make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to
<br />be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the FFunds. Borrower and Lender can
<br />agree In writing, however, that interest shall be paid on the Funds, Lender shall give to Borrower, without charge, an annual
<br />accounting of the Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower farina excess funds in
<br />accordance with RESPA. It there Is a shortage of Funds held in escrow, as defined under RESPA, Lander shall notify Borrower as
<br />required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but
<br />in no more than until Lender's monthly payments. It there is a deficiency of Funds held in escrow, as defined under RESPA, Lender
<br />shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in
<br />accordanco with RESPA, but in no more than until Lender's monthly payments.
<br />Upon payment in full at all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held
<br />by Lender.
<br />4. Charges; Lions. Borrower shall pay all taxes, assessments, charges, fines, and imppositions attributable to the Property
<br />which can attain priority over this Security Instrument, leasehold payments at ground rents on the Property, i any, and Community
<br />Association Dues, Fees, and Assessments, if any. To the extent that these Items are Escrow Items, borrower shall pay them In the
<br />manner provided in Section 3.
<br />Borrower shall promptly discharge any lion which has priority over this Security Instrument unless Borrower: (a) agrees in
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is
<br />performing such agreement; (b) contests the lien in ggootl faith h , or defends against enforcement of the lien in, legal proceedings
<br />which in Lenders opinion operate io prevent the enforcement oYthe lien while those proceedings are pending, but only until such
<br />proceedings are concluded; or (c secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br />over this Security Instrument. If Lender determines that any ppar[ of the Property is sub act to a lien which can attain priority thi s
<br />Security Instrument. Lander may 91ve Borower a notice Identttying the lien. Wtthm 1� days of [he date on which that notice is given,
<br />Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower to pay aerie -time charge for a real estate tax verification and/or reporting service used by Lender
<br />in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property bbd o
<br />t,
<br />against loss by tire, hazards included within the term extended coverage; and any other hazards including, but not ted
<br />cluding ng
<br />earthquakes and floods, tar which Lender requires insurance. This insurance shall ba maintained in the amounts (in
<br />deductible levels) and far the periods that Lender requires. What Lender rewires pursuant to the preceding sentences can change
<br />during tho term of the Loan. The insurance carrier providing the insurance shall bso hosen by Borrower subject to Lenders right to
<br />disapprove Borrower's choice, which right shall not a exercised unreasonably. Lender may require Borrower to pay, in connection
<br />with this Loan, either: (a) a one -time charge for flood zone determination, certification and tracking services; or (b) a one-time charge
<br />for flood zone determination and certification services and subsequent charges each time remappings or similar Chan as occur
<br />which reasonably might affect such determination or certification. Borrower shall also be responsible fort a payment o any fees
<br />imposed by the Federal Emergency Management Agency in connection with the review of any food zone determination resulting
<br />If Borrower falls to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option
<br />and Borrowers expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such
<br />coverage shall cover Lender, but might or might not protect Borrower, Borrowers equity in the Property, or the contents of the
<br />Property, against anyy risk, hazard or liability and might provide greater or lesser coverage than was previously In effect. Borrower
<br />acknowledges that Iha cost of the Insurance coverage sU obtained might significantly exceed the cost of insurance that Borrower
<br />could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by
<br />this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lender is Borrower requesting payment,
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such
<br />policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender
<br />shall have the right to hold the olicies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. If Borrower obtains any farm of insurance coverage, not otherwise required by Lender, for
<br />damage to, or destruction of, the Property, such policy
<br />all include a standard mortgage clause and shall name Lender as
<br />mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss e It
<br />not made promptly a Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the
<br />underlying insurance was required se Lender, shall be applied During restoration it repair the Property, d the restoration or repair o
<br />economically feasible and Lenders security is not lessened. During such repair and restoration arty period, Lender shall have the right d
<br />hold such insurance proceeds until Lender has had on opportunity a inspect such . end to ensure the work has been completed
<br />to Lenders satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs
<br />and restoration in a single payment or In a series of progress payments as the work Is completed. Unless an agreement is made in
<br />writing or Applicable Law requires interest to be paid an such insurance proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such proceeds, Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of
<br />the insurance proceeds and shall be the sole obligation of Borrower If the restoration or repair is not economically paid or
<br />Lenders securty would be lessened, the Insurance proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with the excess, it any, paid to the Borrower. Such insurance proceeds shall be applied in the order
<br />provided for in Section 2.
<br />It Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters If
<br />Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, than Lender
<br />may negotiate and settle the claim. The 30 -day period will begin when the notice is given. In either event, or if Lender acquires the
<br />Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an
<br />amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any at, a of Borrowers rights (other
<br />than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as
<br />such rights are applicable to the coverage of the Pro 07 Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or this Scourtty Instrument, whother or not then due.
<br />6. Oeeupan% Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days
<br />after the execution of this Security Instrument and shall continue to occupy the Property as Borrowers principal residence for at least
<br />one year after the dale of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or
<br />unless extenuating circumstances exist which are beyond Borrowers control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or
<br />impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the
<br />Property, Borrower shall maintain the Property In order to prevent the Property from deteriorating or decreasing in value due to Its
<br />condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall
<br />promptly repair the Propeny if damaged to avoid funher deterioration or damage. If insurance or condemnation proceeds are paid in
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the
<br />Lender has released proceeds for such purposes. Lentler may disburse proceeds for the repairs and restoration in a
<br />or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not su
<br />or restore, the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoratio
<br />NESFASKAAU1911 Family -FmNe MedF xii Mm UNIFORM INSTRUMENT F_] @GI /01(.. 3e1T pap —)
<br />3018 NE DOT III.I F.
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