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If Lender receives a payment from Borrower for a deli
<br />to pay any late charge due, the payment may be applied to the
<br />Periodic Payment is outstanding, Lender may apply any paymei
<br />Payments if, and to the extent that, each payment can be paid In
<br />applied to the full payment of one or more Periodic Payments, si
<br />prepayments shall be applied first to any prepayment charges i
<br />shall
<br />Escrow Items.
<br />change
<br />5
<br />Al. To the extent that anyexcess exists after the payment is
<br />ch excess may be applied to any late charges due. Voluntary
<br />id then as described in the Note.
<br />or Miscellaneous Proceeds to principal due under the Now
<br />ofthe Periodic Payments.
<br />znder on the day Periodic Payments are due under the Note,
<br />until the Note is paid in full, a sum (the `Funds ") to provide for payment ofamounts due for: (a) taxes and assessments and
<br />other Mena, 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, ifany; (c) premiums for anyand all insurance required b t Lender under Section 5;
<br />and (d) Mortgage Insurance premiums, Warty, or any sums payable by Borrower to Lender m lieu otythepeymentofMortgage
<br />Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination
<br />or at anytime during the term of die Loan, Under may require that Community Association Dues, Fees, and Assessments,il
<br />any, be escrowed byy Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
<br />filmish to Lender allnonce., of amounts to be paid under this Section. Borrower shall pay Lender me Funds for Escrow Items
<br />unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Iznder Funds for any or all Escrow Items at any time. Any such waiver may only a in writingg In the
<br />event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items forwhich
<br />payment of Funds has been waived y Iznder and, if Under requires, shall furnish to Lender receipts evidencing such
<br />payment within such tune period as Lender may require. Borrower's obligation to make such payments and to provide
<br />receipts shall for all purposes he deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />"covenant mid agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver,
<br />and Borrower fails to pay the amount due for an Escrow Item, Under may exercise its Tit y his under Section 9 and pay such
<br />amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the
<br />waiver as to any or all Escrow Items at anytime by a notice given in accordance with Section 15 and, upon such revocation,
<br />Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at anytime, collect and hold Funds in an amount (a) sufficient to permit Under to oppplythe Funds at
<br />the time specified under RESPA, and (b) not to exceed the maximum aniount a lender can require under RESPA. Lender
<br />shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures off sture Escrow
<br />Items car otherwise in accordance with Applicable Law.
<br />apply the Funds to pay the Escrow Items no later man the time specmed under KILM -A. Under 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 Law 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 gay Borrower
<br />any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall bep aid on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting ofthe Funds as required by RESPA.
<br />Ifthere is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account m Borrower for the
<br />excess funds in accordance with RESPA. Ifthere is a shortage 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
<br />shortage in accordance with RESPA, but In no more than 12 monthly payments. Ifthere is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall paym Lenderthe
<br />amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full ofall sums secured by this Security Instrument, Lender shall promptlyrefundto Borrower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable tome
<br />Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, ifany,
<br />and Community Association Dues, Fees, mid Assessments, ifany. To the ext ent 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 ofthe obliggation secured by the lien in a manner acceptable to Lender, but only so long as
<br />Borrower Is per arm mg such agreement; (b) contests the lien in good faith by, or defends against enforcement ofmc lien In,
<br />legal proceedings which in Lender's opinion operate to prevent the enforcement ofthe lien while those proceedings are
<br />pending, but only until such proceedings arc concluded; or (c) secures from the holder ofthe lien an agreement setisficmry m
<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(yover this Security Instrument, Lender invyive Bonowera notice Identifying the ben. Within
<br />10 days ofthe date on which that notice is given, Borrower shall satisTy the lien or take one or more ofthe 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 Under in connection with this loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not
<br />limited to, 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 Under requires pursuant to the preceding
<br />sentences can change during die terns 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 />Tender may require Borrower to pay, in connection with this Loan, either: (a) a one -time charge for flood zone
<br />determination, certification and tracking services; 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 type or amount of
<br />coverage. Therefore, such coverageshall cover Lender, but might or might not protect Borrower, Borrower's equity in the
<br />Property, or the contents ofthe Property, against any risk, hazard or liability and might provide greater or lesser coverage
<br />than was previously in effect. Borrower acknowledges that the cost ofthe insurance coverage so obtained might significantly
<br />exceed the cost ofinsurance that Borrower could have obtained. Any amounts disbursed by Lender order this Section 5 shall
<br />become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate
<br />from the date of disbursement mid shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />All insurance policies rejoined by Lender and renewals of such policies shall be subject to Lender's right m
<br />disapprove such policies, shall mclude a standard martyage clause, and shall name Lender as mortgagee and/or as an
<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower
<br />shall promptly give to Under all receipts ofpaid premiums and renewal notices. If Borrower obtains any form ofinsurance
<br />N'ERRASF:ASm& Fartuly— Fannie Mae /Freddie Mac UN [FORM INSTRUMENT Form3028 1101 (yaye3 f8pages)
<br />9954CV(II02) 1684110
<br />coro(0004<fl p
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