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20031643'7
<br />of 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
<br />Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions
<br />of Section 10. These items are called "Escrow Items." At origination or at any time during
<br />theterm of the Loan, Lender may require that Community Association Dues, Fees, and
<br />Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an
<br />Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br />this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives
<br />Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive
<br />Borrower's obligation to pay to Lender Funds for any 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
<br />where payable, the amounts due for any Escrow Items for which payment of Funds has been
<br />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
<br />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
<br />in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and
<br />Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under
<br />Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to
<br />Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any
<br />time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall
<br />pay to Lender all Funds, and in 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
<br />Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the
<br />maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items
<br />or otherwise in 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
<br />insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br />Items no later than the time specified under RESPA. Lender shall not charge Borrower for
<br />holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow
<br />Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to
<br />make such a charge. Unless an agreement is made in writing or Applicable Law requires interest
<br />to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on
<br />the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as
<br />required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account
<br />to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held
<br />in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and
<br />Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with
<br />RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and
<br />Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with
<br />RESPA, but in no more than 12 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 Community Association Dues, Fees, and
<br />Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in
<br />the manner provided in Section 3.
<br />Initials: 7
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<br />6lNE) l00o51.os P,90 5 ,, 16 Form 3028 1/01
<br />CVNE 07/14/03 11:56 AM 6278689218
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