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200308909
<br />Payments are deemed received by Lender when received at the location designated in the
<br />Note or at such other location as may be designated by Lender in accordance with the notice
<br />provisions in Section I S. Lender may return any payment or partial payment if the payment or
<br />partial payments are insufficient to bring the Loan current. Lender may accept any payment or
<br />partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or
<br />prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
<br />obligated to apply such payments at the time such payments are accepted. If each Periodic Payment
<br />is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender
<br />may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower
<br />does not do so within a reasonable period of time, Lender shall either apply such funds or return
<br />them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal
<br />balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might
<br />have now or in the future against Lender shall relieve Borrower from making payments due under the
<br />Note and this Security Instrument or performing the covenants and agreements secured by this
<br />Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all
<br />payments accepted and applied by Lender shall be applied in the following order of priority.' (a)
<br />interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such
<br />payments shall be applied to each Periodic Payment in the order in which it became due. Any
<br />remaining amounts shall be applied first to late charges, second to any other amounts due under this
<br />Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes
<br />a sufficient amount to pay any late charge due, the payment may be applied to the delinquent
<br />payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply
<br />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
<br />applied to the full payment of one or more Periodic Payments, such excess may be applied to any late
<br />charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as
<br />described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due
<br />under the Note shall not extend or postpone the due date, or change the amount, of the Periodic
<br />Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are
<br />due under the Note, until the Note is paid in full, a sum (the "Funds') to provide for payment of
<br />amounts due for: (a) taxes and assessments and other items which can attain priority over this
<br />Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground
<br />rents on the Property, if any; (c) premiums for any and all insurance required by Lender under
<br />Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender
<br />in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section
<br />10. These items are called "Escrow items. "At origination or at anytime during the term of the Loan,
<br />Lender may require that Community Association Dues, Fees and Assessments, if any, be escrowed by
<br />Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
<br />furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the
<br />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
<br />Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower
<br />shall pay directly, when and where payable, the amounts due for any Escrow Items for which
<br />payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts
<br />evidencing such payment within such time period as Lender may require. Borrower's obligation to
<br />make such payments and to provide receipts shall for all purposes be deemed to be a covenant and
<br />agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in
<br />Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower
<br />fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and
<br />pay such 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 given in
<br />accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in
<br />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 Lender
<br />to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a
<br />lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of
<br />current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
<br />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 insured)
<br />or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later
<br />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 Lender pays
<br />Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an
<br />agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender
<br />shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender
<br />can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br />;W&yntj,hgr e, an ,anrgalrpcc°Vtb , %SF�i �ras required by RESPA. MFres Modified Fem; 3028 uo1
<br />R03 1"112
<br />(pnga 3 of 10 pages)
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