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200301622
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount
<br />to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one
<br />Periodic Payment is outstan ding, Lender may apply any payment received from Borrower to the repayment of the Periodic
<br />Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is
<br />applied to the full payment of one or more Periodic Payments, such excess maybe applied to any late changes due. Voluntary
<br />prepayments shall he applied first to any prepayment charges and then as described in the Note
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note
<br />shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />1 Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note,
<br />until the Note is paid in fill, a sum (the "Foods") to provide for payment of surrounds due for: (a) taxes and assessments and
<br />other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold
<br />payments or ground rents on the Property, ifarry, (e) premiums for any and all insurance required by Lender ulyder Section 5;
<br />and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu ofthe paymentofMortgage
<br />Insurance premums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination
<br />or of any time during the term of the Loan, Lender may Teen ire that Community Association Dues, Pees, and Assessments, if
<br />any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
<br />furnish to Lender of notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items
<br />unless Lender waives Borrower's obi igation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for anyor all Escrow Items m arrytrme. Any such waiver may only be in writing. lathe
<br />event of such waiver, Borrower shall pay directly, when and where payable, the amounts due fin any Escrow Items for which
<br />payment of Funds has been waived y Lender and, if Lender requires, shall furnish to Lender receipts evidencing such
<br />payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide
<br />receipts shall Cur all purposes be deemed m be a covenant end agreement contained in this Security Instrument as the phrase
<br />"covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver,
<br />and Borrower fads to pay the 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 amount. Iender may revoke the
<br />waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 arid, upon such revocation,
<br />Borrower shall pay to Lender all Punds, and in such amounts, that are then required under this Section 3.
<br />I znder may, at any lime, collect and hold Funds in an amount (a) sufficient to permit Lender to applythe Funds at
<br />the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require kinder RESPA, lender
<br />shall estimate the amount of Funds due on the basis ofcurrent data and reasonable estimates ofexpendhures off rtureEscrow
<br />Items or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured bya federal agency, instrumentality, or entity
<br />(including Lender, if lender is an institution whose deposits are so insured) or in any Federal Home Ioaa Bank. Icnder shall
<br />apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower
<br />for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless lender
<br />pays Borrower interest on the Funds and Applicable Low permits Lender to make such a charge. Unless an agreement is
<br />made in writing or Applicable Law requires interest to be paid on the Funds, lender shall not be required to ppay Borrower
<br />any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall bepaidonthe
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.
<br />If here is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the
<br />excess funds in accordance with RESPA. If there is a shortage of unds held in escrow, as defined under RESPA, Lender
<br />shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the anlount necessary to make up the
<br />shortage in accordance with RESPA, but in no more than 12 monthlypayments. If there is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Under shall notify Borrower us required by RESPA, and Borrower shall pay to Lender the
<br />amount necessary to make up the deficiency in accordance with RESPA, but in no more than l2 monthly payments.
<br />Hpon payment in full ofall sums secured by this Security Instumt n Lender shall promptly refund to Borrower any
<br />Funds held by Lender.
<br />4. Cha rges; Liens. Borrower shat l pav al l taxes, assessments, charges, fincs, and impos i bans attributable to the
<br />Property which can attain In over this Security Instrument leasehold payments or ground rents on the Property, if my,
<br />and Community Association Dues, Fees, and Assessments, ifany. To the extent that these items are Escrow Items, Borrower
<br />shall pay them in the manner provided in Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as
<br />Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against en forccmenl aHhc lien in,
<br />legal proceedings which in Lender's opinion operate to prevent the enforcement of the hen while those proceedings are
<br />pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactnrytn
<br />Lender subordinating the lien to this Security Instrument. If Lender determines that any part ofthe Property is subject to a
<br />lien which can attain priori over this Security Instrument,I Under may give Borrower a notice identifying the lien. Within
<br />10 days of ds date on whic n that notice is given, Borrower shall satisfy the lien or take one or more of die actions set forth
<br />above in this Section 4.
<br />Lender may require Borrower to pay a one -time charge for a real estate tax verification and /or reporting service
<br />used by Lender in connection with this Inan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on die Property
<br />insured against loss by foe, hazards included within the term "extended coverage," and any other hazards including, but not
<br />limited w, earthquakes and floods, for which lender requires insurance. This insurance shall be maintained in the amounts
<br />(including deductible levels) and for the periods that Lender requires. What lender requires pursuant to the preceding
<br />sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably.
<br />Lender may require Borrower to pay, in connection with this Loan, either: (a) a one -time charge for flood zone
<br />determination, certification and to or or (b) a one -time charge for flood zone determination and certification
<br />services and subsequent charges each time remappings or similar changes occur which reasonably might affect such
<br />determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the federal
<br />Emergency Management Agency in connection with the review ofany flood zone determination resulting from an objection
<br />by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option and Borrower's expense Lender is under no obligation to purchase any particular We or amount of
<br />coverage. Therefore, such coverage shall cover Under, but might or might not protect Borrower, Borrower's equity in tire
<br />Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage
<br />than waspreviously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained mightsignificantly
<br />exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by lender under this Section 5 shall
<br />become addit ional debtnfBorruwersecurcdbytlnis Securitylnstrunnent. These amounts shall bear interest at the Note rate
<br />Item the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />NI insurance policies required by standard Lender and renewals e, such ppolicies shall be subject ro gender's right to
<br />disapprove such yelicie n shall include a standard mortgage clause, and shall name Lender as nder mortgagee
<br />qui and/or o er
<br />shallpromptly payee. Lender shoe receipts of paidpremiumh and and renewal fB rrowerobtain any insurance
<br />shall promptly give to I znder at I ax;cipts of paid premiums ¢kid renewal notices. If Borrower obtains any form of insmance
<br />NERRASRA- Singlcl'nmily— Fnnnie Mae /Freddie MseINIFORMIN.STR1p1F,NT Form3028 1 /01 (paRe3of8paguJ
<br />9754CV(1 /02) u,11141i
<br />GOTO(00041634)
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