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eEae. 20021311.0
<br />20021 -R
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant
<br />and convey the Property and that the Property is imencunbered, except for ®cumbrances of record. Borrower warrants and
<br />will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and nun - uniform covenants with
<br />limited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest, Escrow items, Prepayment Charges, mad late Charges. Borrower shall pay
<br />when due the principal of, and interest m, the debt evidenced by the Note and any prepayment charges and late charges due
<br />trader the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this
<br />Security Instrument shall be made in U.S. currency. However, if my check or other instrument received by Lender as
<br />payment under the Note or this Security Instilment is returned to Lender unpaid, Leader may require that my or all
<br />subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as
<br />selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, tr'easurer's check or cashier's check, provided
<br />my such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or
<br />(d) Electronic Foods Transfer.
<br />Payments arc, deemed received by Lender when received at the location designated in the Now or at such other location
<br />as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or
<br />partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept my payment
<br />or partial payment insufficient to bring the Loan current, without waiver of my rights hereunder or prejudice to its rights to
<br />refuse such payment or partial payments in the future, but Lender is an[ obligated to apply such payments at the time such
<br />payments me accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on
<br />unapplied funds. Leader may hold such unapplied funds until Burrower makes payment to bring the Loan current If
<br />Borrower does not do air within a reasonable period of time, Leader shall either apply such funds or retain them to Borrower.
<br />If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to
<br />foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from
<br />making payments due under the Note and Otis Security Instrument or performing the covenants and agreements secured by
<br />this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted
<br />and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due
<br />under the Now; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in
<br />which it became due. Any remaining amounts shall be applied first to late charges, second to my other amounts due under
<br />this Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment form Borrower for a delinquent Periodic Payment which includes a sufficient amount to
<br />pay any late charge due, the payment may he applied to the delinquent payment and the late charge. If more than one Periodic
<br />Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments
<br />if, mid to the extent that, each payment can be paid in hill. To the extent that any excess exists after the payment is applied to
<br />the full payment of one or more Periodic Payments, such excess may be applied to my late charges due. Voluntary
<br />prepayments shall be applied first to my prepayment charges and then as described in the Nolc.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not
<br />extend or postpone the due date, or change the meant, of the Periodic Payments.
<br />3. Funds for Eseraw Items. Borrower shall pay to Lender 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 of amounts due for: (a) taxes and assessments and
<br />other items which can attain priority over this Security Instrument as alien or encumbrance on the Property; (b) leasehold
<br />payments or ground rents run the Property, it any; (e) premiums for my and all insurance required by Leader undo Section 5;
<br />and (d) Mortgage Insurance premiums, if any, or my sums payable by Borrower to Lmder in lieu of the payment of
<br />Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At
<br />origination mr at any tune during the term of the Loan , Leader may require that Community Association Dues, Fees, and
<br />Assessments, if any, be escrowed by Borrower, and such dues, tees and assessments shall be an Escrow Item. Borrower shall
<br />promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Foods for
<br />Escrow Items unless Leader waives Borrower's obligation to pay the Funds for my or all Escrow items. Leader may waive
<br />Borrower's obligation to pay to Lender Funds for my or all Escrow Items at my time. Any such waiver may only be in
<br />writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amnourts due for my Escrow
<br />NEERAS"A iar]e Family— Faamle Mae /theddle Mae UNIFORM RVSTRUMEN'r Fwm 30281 /01
<br />nR1AND
<br />REM 1i16L9aa111 (Pg6]o1lI PR[S 99360f 661 5i91 -1161
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