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<br />200600441
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<br />DOC ID #: 00012396471312005
<br />Borrower to the repayment of the Periodic Payments if, and to the~ extent that, each payment can be paid in
<br />full. To the extent that any excess exists after the payment is applied to the full payment of one or more
<br />Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be
<br />applied first to any prepayment charges and then as described in the Note.
<br />Any application of payments, insurance pro(;eeds, or Miscellaneous Proceeds to principal due under the
<br />Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. BOlTOwer shall pay to Lender on the day Periodic Payments are due under
<br />the Nott~, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a)
<br />taxes and assessments and other items which can attain priority over this Security Instrument as a lien or
<br />encumbrance on the Propeliy; (b) leasehold payments or ground rents on the Property, if any; (c) premiums
<br />for any and all insuraru;e required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or
<br />any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in
<br />accordance with the provisions OfSf:c:tioll 10. These items are called "Eserow Items." At origination or at any
<br />time during the term of the Loan, Lendf)l' 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 Escrow Item.
<br />BOITowe:r shall promptly fumish 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 BOITower's obligation to pay the Funds for any
<br />or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow
<br />Items at any time. A.ny such waiver may only be in writing. In the event of such waiver, Borrower shall pay
<br />directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has
<br />been waived by Lender and, if Lender requires, shall furnish to Lend'~r receipts evidencing such payment
<br />within SL1Ch time period as Lender lIlay require. Borrower's obligation to make such payments and to provide
<br />receipts shan for all purposes be deemed to be a covenant and agreement contained in this Security
<br />Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay
<br />Escrow Items direGtly, purSl.lant to a waiver, and Borrower fails to pay the amount due for an Escrow Item,
<br />L..::nder rnlty exercise its rights under S~~ction I) and pay such amount and Borrower shall then be obligated
<br />under Section I) to repay to lender any such amount. Lender may revoke the waiver as to any or all Escrow
<br />Items at any tilY\(: by a notice given in accordat\ce 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, eollect and hold Funds in an amount (a) sufficient to pelmit Lender to apply the
<br />.Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require
<br />under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable
<br />estimates of expenditures of future Escrow [tems or otherwise in accordance with Applicable Law.
<br />The Funds sllall be held it' an institution whose deposits are insured by a federal agency, instrumentality,
<br />or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home
<br />Loan Bank. Lender shall apply thf~ Funds to pay the Escrow Items no later than the time specified under
<br />RESP~. Lender shall nol charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br />account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable
<br />Law pf:nnits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law
<br />requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eamings
<br />on the Funds. Borrower and Lender can :lli,rree in writing, however, that interest shall be paid on tbe Funds.
<br />Lender iihall give to Borrower, without (~harge, an annual accounting of the Funds as required by RESPA.
<br />Ifthere is a slllplus of Funds held in escrow, as defined under RESP A, Lender shall account to Borrower
<br />for the excl~ss funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined
<br />under RESPA, Ler,der shall notifY 13ono~er as required by RESPA, and Borrower shall pay to Lender the
<br />amount necess,!.r)" to make up the :,ho:iage in accordance with RESPA, but in no more than 12 monthly
<br />payments. If Hier,,; is a defidency of FU:lds h~~ld in escrow, as defined undl,r RESPA, Lender shall notify
<br />BOITO\H:r as required by RESPA, and Borrower shalllJHY to Lender the amount necessary to make up the
<br />deficiency in aceordance with RESF'A, but in nu m('re: than 12 monthly payments.
<br />\) pOll payrnf;n~ in full of all SdntS sf,,:ured by this Security Instrument, Lender shall promptly refund to
<br />Borrower any funds held by Lender.
<br />-1. Chall'gE's; Liens. Borrower shall pay all taxes, assessmf:nts, charges, fines, and impositions attributable
<br />to the Pl'Opeliy which cart attain priority over this Security Instrument, leasehold payments or ground rents on
<br />the Property, if any, and Community AssociatiO:1 Dues, Fees, and Assessments, if any. To the extent that these
<br />items are Escrow Item~;, BOn'ow(~r shall pay them in the manner provided in Section 3.
<br />Borrower "hall promptly discharge any lien which has priority over this Security Instrument unless
<br />BOITower: (a) agrees in writing to the payment ofth~~ obligation secured by the lien in a manner acceptable to
<br />Lender, hut only so long HS Borr.y,vct' iE performing such agreement; (b) contests the lien in good faith by, or
<br />defcpds agail1:>f. elili:m:ement of the li:::n in., legal proceeding', which in Lendel's opinion operate to prevent the
<br />enforccornent of (h:': Iiell while those pt'o:eedings ,U'e pending, but only until such proceedings are concluded;
<br />or (c) "(:cures fi'orn the holdm' 'of the lit;n al agn:'~lll~nt satisfa,:tory 10 Lellder subordinating the lien to this
<br />Security Ins,trunwnt. If Lender detenl1in,:s that any part of the Property is subject to a }ien which can attain
<br />priority over this Security Instrument, Lender may give BOITower a notice identifying the lien. Within 10 days
<br />of the date UIl which that notice is given, Borrower shaH satis(y the lien or take one or more of the actions set
<br />forth ahove in tbis Section 4.
<br />Llmder may require Bonower to pay a on-:-time charge for a real estate tax verification and/or reporting
<br />service used by Ll:nder in cormeetion with this Loan,
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<br />~ -M(NE:) (0407)
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<br />CHL (08/05\
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<br />Pa'~e 4 of 1'1
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<br />Form 3028 1/01
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