|
200214012
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount
<br />to pay any late charge due, the payment maybe applied to the delinquent payment and the late charge. If more than one
<br />Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment ofthe Periodic
<br />Payments i f and to the extent that, each payment can be paid in in IL To the extent that any excess exists after the payment is
<br />applied to the full payment of one or more Pen odic Payments, such excess may be app lied to any late charges due. Voluntary
<br />prepayments shall be applied first to any prepayment charges and then as described in the Note.
<br />Any application afpayments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Nate
<br />shall not extend 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 Now,
<br />unti l the Note is paid in full, a sum (the "Funds ") to provide for payment of amounts due for: (a) taxes and assessments and
<br />other items 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 any and all insurance required by Lender tinder Section 5;
<br />Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items" Atoriydnation
<br />or at anytime during the tern ofthe Loan, Lender may require that Community Association Dues, Fees, and Assessments,if
<br />any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
<br />furnish to Lender all notices ofarmers to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items
<br />unless Lander waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the
<br />event ofsuch waiver, Borrower 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 evidencing such
<br />payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide
<br />receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />"covenant and 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, Leader may exercise its rights under Section 9 and pay such
<br />amount and Borrower shall then be obligated under Section 9 to repay m Lender any such amount Lender may revoke the
<br />waiver as to any or all Escrow Items at any time 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 Lender to apply the Funds at
<br />the time specified under RESPA, and Ho not to exceed the maximum amount a lender can require under RESPA. Lender
<br />shall estimate the amount of Funds due on the basis of on, car data and reason able estimates ofexpenditures of future Escrow
<br />Items or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including Lender, fLender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lendershall
<br />apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender 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 pay Borrower
<br />any interest or earnings on the Funds- Borrower and Lender can agree in writing, however, that interest shall be paid on the
<br />Funds. Leader shall give to Borrower, without charge, an annual accounting ofthe 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
<br />excess funds in accordance with RESPA. If there is a shortage ofFunds 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 tip the
<br />shortage in accordance with RESPA, but in no more than 12 monthly payments. Ifdhere is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the
<br />amount necessary to make up the deficiencyin accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment m full ofall sums secured by this Secunty Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Borowershall payalltaxes, assessments, charges, fines, and impositions attributable to the
<br />Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, ifany,
<br />and Community Association Dues, Pees, and Assessments, ifany. To the extent 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 m the payment ofthe obligation secured by the lien in a manner acceptable to Lender, but onlyso long as
<br />Borrower is performing such agreement, (b) contests the lien in good faith by, or defends against enforcement of the lien in,
<br />legal proceedings which in Lender's opinion operate to prevent the enforcement of the Tien while those proceedings are
<br />pending, but only until such proceedings are concluded; or (c) secures from the holder ofthe lien an agreement satisfactory to
<br />Lender subordinating the Tien to this Security Instrument. If Lender determines that any part ofthe Property is subject to a
<br />[ien,hich can attain priority over this Seeunty Instrument, Lender may give Borrower a notice identifying the lien. Within
<br />10 days ofthe date on which that notice is given, Borrower shall satisfy 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 Lender 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 m, 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 Lender requires pursuant to the preceding
<br />sentences can change during title term 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 />Lender may require Borrower to pay, in connection with this Lou", either: (a) a one -time charge for flood zone
<br />determination, certification and hacking services; or (b) a one-time charge for flood zone determination and certification
<br />services and subsequent charges each time rentappings 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 tie obligation to purchase any particular type or amount of
<br />coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borower'sequityin 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 acknow ledges 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 under this Section 5 shall
<br />become additional debt ofBorrowa, secured by this Security Instrument. These amounts shall bear interest at the Note rate
<br />from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br />disapprove such policies, shall include a standard mortgage 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 Lender all receipts ofpaid premiums and renewal notices. li Borrower obtains any form of insurance
<br />N ERR MKA— SIn81e fated y— Fnnnie.Nae /hoddie.N.v IN FORM INSTRUMENT Fonn3028 1/01 (pnge JOJB pngcxl
<br />9754 CV G1215ti
<br />
|