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200211350 LOAN R: 2233893
<br />Payment is applied as of its scheduled due dale, then Lender need not pay interest onunapplied funds. Lender may hold such unapplicd
<br />funds, until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of lime, Lender
<br />shall either apply such funds or return them to Borrower. If not applied earlier, such Ponds will be applied to 1lie 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 hhslnlmcat or performing the covenants
<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 in 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 amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then
<br />to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any
<br />late charge due, the payment may be applied to the delinquent payment and the late charge. If ionic [Iran one Periodic Payment is
<br />outstanding, Lender may 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 ahcr 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 />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the 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 [tic Properly; (b) leasehold payments or ground rents on the
<br />Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums,
<br />if any, or any sums payable by Borrower to Lender in lieu of the 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 Hine during the term of the Loan, Lender
<br />may require that Community 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 lobe paid under this Section.
<br />Borrower shall pay Lender the Funds for Escrow hems 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 arnv or all Escrow Items 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 forwhich payment ofFunds has been waivedby Lender arid, if Lender requires, shall furnishto Lender receipts
<br />evidencing suchpaymentwithin such timeperiodas Lendermay require. Borrower's obligationtomake suchpaymenls andtoprovide
<br />receipts shall for all purposes be deemedtobe acovenanl andagmemenlcontainedin this Security Instrument, as thephrase "covenant
<br />and agreement" is used in Section 9. If Borrower is obligated 10 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 are then required under this Scction 3.
<br />Lender may, at any time, 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 [tic maxirmmh anhoant 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 otherwise in
<br />accordance with Applicable Law
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including
<br />Lender, if Lender 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 Items no later than the lime 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 intereston the Funds
<br />andApplicableLawpermitsLcndcr Imnake such a charge. Unless anagreementis made inwritingorApplicable Lawrequires interest
<br />to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender
<br />can agree in writing, however, Ilia[ 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 make up 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 />nolity 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 in fill ofall sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held
<br />by Lender.
<br />4. Charges; liens. Borrowcrshall pay all taxes, assessments, charges, fines, and impositions altribulableto thePmperty 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 Items, Borrower shall pay them in the
<br />manner Provided in Section 3.
<br />Borrowcrshall promptly discharge any lien whichlhaspriority over this Security Instrumenturdess Borrower: (a) agrees inwriling
<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 />suchagreement;(b)contests the lien in good faithby, ordefends againstenf or camentofthe lienin, legalproceedingswhichin Lender's
<br />opinion operate to prevent the cnforecmenl or the lien while those proceedings are pending, but only until such proceedings are
<br />concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security
<br />Instrumcnt. I Mender determines that any part of the Property is subject to alien which can attain priority over this Security Instrument,
<br />Lcndcr may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisty
<br />(lie 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 Property insured
<br />against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to,
<br />NENIWS"-- S,.& Family- -Famuc N[Wk'rcnaic Mac UNIFORM INSTRUMENT Initials: k($ `/
<br />Form 3028 Vol Page 3 of 8 NFI (DEED
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