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200308909
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to
<br />Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in
<br />escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower
<br />shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in
<br />no more than twelve monthly payments. If there is a deficiency of Funds held in escrow, as defined
<br />under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender
<br />the amount necessary to make up the deficiency in accordance with RESPA, but in no more than
<br />twelve monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly
<br />refund to Borrower any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
<br />attributable to the Property which can attain priority over this Security Instrument, leasehold
<br />payments or ground rents on the Property, if any, and Commnunity Association Dues, Fees, and
<br />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 lien which has priority over this Security Instrument
<br />unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a
<br />manner acceptable to lender, but only so long as Borrower is performing such agreement, (b)
<br />contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings
<br />which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are
<br />pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which can attain priority over this
<br />Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the
<br />date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions
<br />set forth above in this Section 4.
<br />Lender may require Borrower to pay a one -time charge for a real estate tax verification
<br />and /or reporting service used by Lender in connection with this Loan.
<br />S. Property Insurance. Borrower shall keep the improvements now existing or hereafter
<br />erected on the Property insured against loss by fire, hazards included within the term "extended
<br />coverage, " and any other hazards including, but not limited to, earthquakes and floods, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts (including deductible
<br />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
<br />shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right
<br />shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this
<br />Loan, either: (a) a one -time charge for flood zone determination, certification and tracking services;
<br />or (b) a one -time charge for flood zone determination and certification services and subsequent
<br />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
<br />imposed by the Federal Emergency Management Agency in connection with the review of any flood
<br />zone determination resulting from an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain
<br />insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to
<br />purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender,
<br />but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the
<br />Property, against any risk, hazard or liability and might provide greater or lesser coverage than was
<br />previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained
<br />might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts
<br />disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this
<br />Security Instrument. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to
<br />Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name
<br />Lender as mortgagee and /or as an additional loss payee. Lender shall have the right to hold the
<br />policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all
<br />receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage,
<br />not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall
<br />include a standard mortgage clause and shall name Lender as mortgagee and /or as an additional
<br />loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower
<br />otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was
<br />required by Lender, shall be applied to restoration or repair of the Property, if the restoration or
<br />repair is economically feasible and Lender's security is not lessened. During such repair and
<br />restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had
<br />an opportunity to inspect such Property to ensure the work has been completed to Lender's
<br />satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse
<br />proceeds for the repairs and restoration in a single payment or in a series of progress payments as
<br />the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to
<br />N£RRdS" S,,J, Family — Fannie Mae /Freddie. M., UNIFOW INDRUM£NT MFRS Modjfied FO- 30?.S 0 /0)
<br />R03 -1]12
<br />(p., 4 of 10 pages)
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