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<br />200512159
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<br />DOC 10 #: 00012281683912005
<br />Borrower to thc repayment of thc Pcriodic Payments if, and to the cxtcnt that, each payment can bc paid in
<br />full. To thc extent that any excess exists after the payment is applied to the full payment of one or more
<br />Pcriodic Payments, such excess may bc applied to any late charges due. Voluntary prepayments shall be
<br />applicd first to any prepaymcnt charges and thcn as described in the Note.
<br />Any application of paymcnts, insurance proceeds, or Misccllaneous Proceeds to principal due under the
<br />Notc shall not extend or postpone the due datc, or change thc amount, of the Periodic Payments.
<br />3, Funds for Escrow Items, Borrower shall pay to Lender on the day Periodic Paymcnt<; are due under
<br />thc Note, until thc Notc is paid in full, a sum (the "Funds") to provide for payment of amount<; due for: (a)
<br />taxcs and assessments and other items which can attain priority over this Security Instrument as a licn or
<br />encumbrance on thc Propcrty; (b) leasehold payments or ground rents on thc Property, if any; (c) premiums
<br />for any and all insurancc required by Lendcr under Section 5; and (d) Mortgagc Insurance premiums, if any, or
<br />any sums payable by Borrower to Lender in licu of the paymcnt of Mortgage Insurance premiums in
<br />accordance with the provisions of Section 10. Thcse items are callcd "Escrow Items." At origination or at any
<br />timc during the tcrm of the Loan, Lcnder may require that Community Association Dues, Fces, and
<br />Assessments, if any, bc escrowed by Borrower, and such dues, fees and a<;scssment<; shall be an Escrow Item.
<br />Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall
<br />pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay thc Funds for any
<br />or all Escrow Items. Lcnder may waive Borrower's obligation to pay to Lender Funds for any or all Escrow
<br />Items at any timc. Any such waiver may only be in writing. In the evcnt of such waiver, Borrower shall pay
<br />directly, when and where payable, thc amount<; due for any Escrow Items for which payment of Funds has
<br />been waived by Lender and, if Lender requires, shall furnish to Lendcr receipts evidencing such payment
<br />within such time pcriod 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 agreemcnt contained in this Security
<br />Instrument, a<; the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay
<br />Escrow Items directly, pursuant to a waiver, and Borrower fails to pay thc amount due for an Escrow Item,
<br />Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then bc obligated
<br />undcr Scction 9 to repay to Lender any such amount. Lender may rcvoke the waiver as to any or all Escrow
<br />Items at any time by a notice givcn in accordance with Section 15 and, upon such revocation, Borrowcr shall
<br />pay to Lcnder all Funds, and in such amounts, that are then required undcr this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the
<br />Funds at thc time specified under RESPA, and (b) not to exceed the maximum amount a lender can rcquire
<br />undcr RESP A. Lender shall estimate the amount of Funds due on thc basis of current data and rea<;onable
<br />cstimates of expenditures of future Escrow Itcms or otherwise in accordance with Applicable Law.
<br />The Funds shall bc held in an institution whose deposits are insured by a federal agency, instrumentality,
<br />or entity (including Lendcr, if Lender is an institution whose deposits are so insured) or in any Federal Homc
<br />Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under
<br />RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br />account, or verifying thc Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable
<br />Law permits Lender to make such a charge. Unless an agreemcnt is made in writing or Applicable Law
<br />requires intcrest to be paid on the Funds, Lender shall not be rcquircd to pay Borrower any interest or earnings
<br />on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds.
<br />Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESP A.
<br />If there is a surplus of Funds held in escrow, as defined under RESP A, Lender shall account to Borrower
<br />for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as dcfincd
<br />under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the
<br />amount necessary to makc up the shortage in accordancc with RESPA, but in no more than 12 monthly
<br />payment<;. If there is a deficicncy of Funds held in escrow, as defined under RESPA, Lender shall notify
<br />Borrower as requircd by RESPA, and Borrower shall pay to Lender the amount necessary to make up the
<br />deficiency in accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall prompLly rcfund to
<br />Borrower any Funds held by Lender.
<br />4, Charges; Liens, Borrowcr shall pay all taxes, assessments, chargcs, fincs, and impositions attributable
<br />to the Property which can attain priority over this Security Instrument, leasehold payment<; or ground rents on
<br />the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these
<br />items are Escrow Hcms, Borrower shall pay them in the manner provided in Section 3.
<br />Borrower shall promptly dischargc any licn which has priority over this Security Instrument unless
<br />Borrower: (a) agrees in writing to the payment of thc obligation secured by the lien in a manner acceptable to
<br />Lender, but only so long as Borrower is performing such agreement; (b) contest<; the lien in good faith by, or
<br />defcnds against enforccment of the lien in, legal proceedings which in Lender's opinion operate to prevent the
<br />enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded;
<br />or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this
<br />Sccurity Instrument. If Lender determines that any part of the Property is subject to a lien which can attain
<br />priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days
<br />of the dale on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set
<br />forth above in this Section 4.
<br />Lendcr may requirc Borrower to pay a one-time charge for a real estate tax vcrification and/or reporting
<br />service used bv Lender in connection with this Loan. /7 41' /... ')n /
<br />Initials: L_JI&' iY
<br />Form 3028 1/01
<br />
<br />__ -6A(NE) (0407)
<br />
<br />CHL (08/04)
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