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200301776 LOAN 11: 2236308
<br />Payment is applied as ofils scheduled due dale, then Lender need Rol pay interest on unapplied funds. Lender may hold such unapplied
<br />funds until Borrower makes payment tabling the Loan current. IfBorriwer does not do so within a reasonable period of time, Lender
<br />shall either apply such funds or return them to Borrower. from applied earlier, such funds will be applied to tire outstanding principal
<br />balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against
<br />Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfonning the coyenanls
<br />and agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied
<br />by Lender shall be applied ire the following order of priority . (a) interest due under the Note; (b) principal due under the Note; (c)
<br />amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any
<br />remaining amdunts shall be applied first to late charges, second to any other amounts due under this Security Instmment, and then
<br />to reduce the principal balance of the Note.
<br />If Lender receives a paymcnt from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any,
<br />late charge due, the paymcnt may be applied to the delinquent payment and the late charge. If more Ihan one Periodic Payment is
<br />outstanding, Lender my apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent
<br />that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one
<br />or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any
<br />prepayment charges and then as described in the Note.
<br />AIR, application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under like Note shall not extend
<br />or postpone the due date. or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note
<br />is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can
<br />attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the
<br />Property, if any, (y premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums,
<br />if auy, or any sums payable by Borrower to Lender in lien of tire payment of Mortgage Insurance premiums in accordance with the
<br />provisions of Section 10 These items are called' `Escrow Items -" At origination or at any time during (he term of the Loan, Lender
<br />may require that Corrununity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and
<br />assessments shall bean Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to he paid under this Section.
<br />Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all
<br />Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow hens at any time. Any such
<br />waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due
<br />for any Escrow Items for which payment ofFUnds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts
<br />evidencing suchpaymcn( within such timeperiodas Lenderrna) require. Borrower's obligation remake suchpayments andto provide
<br />receipts shall for attpurposcs be deemed to be acovenant and agreement containedin this Security Instmment, as thephrase "covenant
<br />and agreement" is used in Section 9. IFBorrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails
<br />to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall
<br />then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items
<br />at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and
<br />in such amounts, that arc (hen required under this Section 3.
<br />Lender may, at auy tinnq collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time
<br />specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA- Lender shall estimate the
<br />amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or othenwlse in
<br />accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits arc insured by a federal agency, instrumentality, or entity (including
<br />Lender. IfLendcr is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds
<br />to pay the Escrow Loons no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying
<br />the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds
<br />and Applicablclow permitsLenderto make sucha charge. Unless an agreementis made inwriting 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 lire Funds. Borrower and Lender
<br />can 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 for the excess funds
<br />in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower
<br />as required by RESPA, and Borrower shall pay to Lender the amount necessary to makeup the shortage in accordance with RESPA,
<br />but in no more than 12 monthly payments. if there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall
<br />notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in
<br />accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment intuit of all sums secured by this Security Instmment, Lender shall promptly refund to Borrower any Funds held
<br />by Lender.
<br />4. Charges; Liens. Borrower shall payall laxas , assessments, charges, fines, and impositions attributableto theProperty which
<br />can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community
<br />Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow hems, Borrower shall pay them in the
<br />manner provided in Section 3,
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unlessBorrowe[ (a) agrees in writing
<br />to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing
<br />such agreement, (b) contests the lien in good faith by, or defends against enforcement ofthe lien in, legal proceedings which in Lender's
<br />opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are
<br />concluded, or (c) secures from the holder of the lieu an agreement satisfactory to Lender subordinating the lien to this Security
<br />Instrument. IfLender determineslhatanypart oftheProperty is subjectto a lienwhich can attain priority over this Security Instrument,
<br />Lender may give Borrower a notice idedifying the lien. Within 10 days ofthe date on which that notice is given, Borrower shall satisfy
<br />the lien or take one or more of the actions set forth 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 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 Properly insured
<br />against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but no( limited to,
<br />NEWUxK4- Single Fmnlly- Fannie brae /Freddle Ma< UNIFORM INSTRUMENT Initials: M Cl- rD
<br />Fun. 302H1101 Page 3 of 8 NEUDEED
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