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<br />200601850
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<br />DOC ID #: 00012506320602006
<br />Borrower to lhe 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 I,he payment is applied to the full payment of one or more
<br />Periodic Paymellls, such excess may be applied to any late charges due. Voluntary prepayments shall be
<br />applied first to any prepayment charges and (,hen as described in the Note.
<br />Any application of payments, inwrance proceeds, or Miscellaneous Proceeds to principal due undcr the
<br />Note shall not exlend or pOStpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds I'or Escrow Itellls. Borrower shall pay to Lender on the day Periodic Payments are duc under
<br />the Note, until the Note is paid in full, a sum (the "Funds") to pmvide for payment of amounls due for: (a)
<br />taxes and assessmcnts and other items which can aLtain priority ovcr this Security Instrument as a lien or
<br />encllmbrunce on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums
<br />for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or
<br />any slims payable by Borrower to Lender in lieu of the payment of Mortgage Immn.\nce premiums in
<br />accordance with Ihe provisions of Section 10. These items arc called "Escrow Items." At origination or at any
<br />time during the term of the Loan, Lender may require that Community Association Dues, Pees, and
<br />Assessments, if any, be escrowed by Borrower, and such dues, fces lllld assessments shall be an Eserow lLem.
<br />Bormwcr shall promptly furnish to Lender alluolices of amounts 10 be paid under (his Section. Borrower shall
<br />pay Lender the Funds for Eserow hems unless Lender waives IlOITOWcr'S obligation to pay the Funds for any
<br />or all Escrow Items. Lendcr may waive Borrower's obligalion to pay to Lender Funds for any or all Escrow
<br />Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay
<br />directly, whcn and where payable, the amounls due for any Escrow Items for which payment of Funds has
<br />been waived by Lender and, if Lendcr requires, shall furnish 10 Lender receipts evidencing such payment
<br />within such time period as Lendcr may require. Borrower's obligation to make such payments and to provide
<br />receipts shall for all purposes be deemed to be a coven lint and agreement contained in this Security
<br />Instmmenl, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligatcd 10 pay
<br />Escrow lLems direclly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item,
<br />Lender may cxercise its rights under Section 9 and pay such amount and Borrower shall then be obligated
<br />under Seclion 9 to repay to Lender any such amounl. Lender may revoke the waiver as to any or all Escrow
<br />Items at any time by a nolice given in accordance with Section 15 and, upon such revocation, Borrower shall
<br />pay to Lender all Funds, and in such amounls, that arc lhen required under this Section 3.
<br />Lender may, atmly time. collect and hold Fumls in an nmo\lnt (a) sufficient to permit Lender to npply the
<br />Funds at the time specified under RESPA, and (h) not to excced Ihe maximum amount a lendcr can require
<br />under RESPA. Lender shall estimnte Ihe amountllf Funds due on lhe basis of current dala and reasonable
<br />eSlimates of expendiLllres of future Escrow Items or otherwise in accordance with Applicable Law.
<br />Thc Funds shall be held in an institution whose deposits are insured by a federal agency, inslnunentality,
<br />or entity (including Lender, if Lender is an institulioll whose deposits arc so insured) or in any Pederal Homc
<br />Loan Bank. Lender shall apply the Funds to pay the Escrow Itcms 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 the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable
<br />Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law
<br />requires inlerestto be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings
<br />on Ihe Funds. Borrower and Lender can agree in writing, however, thai interesl shall be paid on the Funds.
<br />Lender shall give to Borrower, without charge, anannuul accounting of the Funds as required by RESPA.
<br />If Ihere is a surplus of Funds held in escrow, as defined under RESPA, Lendcr Flhall account 10 Borrower
<br />for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined
<br />under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to L.ender lhe
<br />amount necessary to make lip the shortage in accordance with RESPA, bul in no more than 12 monthly
<br />payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify
<br />Borrower as required by RESPA, and Borrower shall pay to Lender the umount necessary to make lip the
<br />dcficiency in accordance with RESP A, but in no more llllln 12 monthly payments.
<br />UPOIl paymcnt in full of all SUIllS secured by this Security Instrument, Lender shall promptly refund to
<br />Borrower any Funds held by Lender.
<br />4. Char~es; Liens. Borrower shall pay ulltllxes, assessments, charges, fines, lInd impositions lIttributable
<br />to the Property which can lIllain priority over this Security Instrumenl, leasehold pay men Is or ground rents on
<br />the Property, if any, ami Community Association Dues, Fees, find Assessments, if any. To the extentlhatthese
<br />i1ems are Escrow lLems, Borrower 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
<br />Borrower: (a) agrees in writing to the payment of the obligation secnred by the lien in a manner acceptable to
<br />Lender, but only so long as Borrower is perfonning such agreement; (b) COTltests the lien in good faith by, or
<br />defends against enforcement 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 sueh proceedings are concluded;
<br />or (c) secures from the holder of the lien an agreemenl satisfactory to Lender subordinating the lien to this
<br />Security InslOlmenl. If Lender determines that any part of the Property is subject to a lien which can allain
<br />priority over this Security Instmmerll, Lender may give Borrower a notice identifying the lien. Within 10 days
<br />of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actiolls set
<br />forth above in this Section 4.
<br />Lender may require Borrower to pay a one~time charge for a rcal estate tax verification lind/or reporting
<br />service used by Lender in connection with this Loan.
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