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<br />200603845
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<br />premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
<br />Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow
<br />Items." At origination or at any time during the term of the Loan, Lender may require that Connnunity
<br />Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and
<br />assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to
<br />be paid under this Section. Borrower shall pay Lender tlle Funds for Escrow Items unless Lender waives
<br />Borrower's obligation to pay tlle Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be
<br />in writing. In tlle event of such waiver, Borrower shall pay directly, when and where payable, tlle amounts
<br />due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires,
<br />shall furnish to Lender receipts evidencing such payment witllin such time period as Lender may require.
<br />Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to
<br />be a covenant and agreement contained in tllis Security Instrument, as tlle phrase "covenant and agreement"
<br />is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and
<br />Borrower fails to pay the anlOunt due for an Escrow Item, Lender may exercise its rights under Section 9
<br />and pay such amount and Borrower shall tllen be obligated under Section 9 to repay to Lender any such
<br />amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in
<br />accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in
<br />such amounts, tllat are tllen required under tllis Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pemlit Lender to apply
<br />the Funds at tlle time specified under RESP A, and (b) not to exceed tlle maximum amount a lender can
<br />require under RESP A. Lender shall estimate the amount of Funds due on tlle basis of current data and
<br />reasonable estimates of expenditures of future Escrow Items or otherwise in accordance witll Applicable
<br />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 insured) or in
<br />any Federal Home Loan Bank. Lender shall apply tlle Funds to pay the Escrow Items no later tllan the time
<br />specitied under RESPA. Lender shall not charge Borrower for holding and applying tlle Funds, annually
<br />analyzing the escrow account, or verifying tlle Escrow Items, unless Lender pays Borrower interest on the
<br />Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing
<br />or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower
<br />any interest or earnings on tlle Funds. Borrower and Lender can agree in writing, however, that interest
<br />shall be paid on tlle Funds. Lender shall give to Borrower, witllout charge, an annual accounting of tlle
<br />Funds as required by RESP A.
<br />If tllere is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to
<br />Borrower for tlle excess funds in accordance witll RESP A. If there is a shortage of Funds held in escrow,
<br />as detined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to
<br />Lender tlle amount necessary to make up tlle shortage in accordance witll RESPA, but in no more than 12
<br />montllly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shaH
<br />notify Borrower as required by RESP A, and Borrower shall pay to Lender tlle amount necessary to make
<br />up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full of all sums secured by tllis Security Instrument, Lender shall promptly refund
<br />to Borrower any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, tines, and impositions
<br />attributable to the Property which can attain priority over tllis Security Instrument, leasehold payments or
<br />ground rents on tlle Property, if any, and Community Association Dues, Fees, and Assessments, if any. To
<br />the extent tllat tllese items are Escrow Items, Borrower shall pay tllem in the maImer provided in Section 3.
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<br />Initials: V 1-; ~
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<br />Page 5 of 15
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<br />Form 3028 1/01
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