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<br />200610017
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<br />DOC 10 #: 00015134437010006
<br />2. Funds for Taxes and Insurance. Subject to applicable law or a wrillcn waiver by Lender, Borrower
<br />shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the
<br />Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including
<br />condominium and planned unit development assessment.., if any) which may attain priority over this Deed of
<br />Tmst, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard
<br />insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, a1] as reasonably
<br />estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable
<br />estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that
<br />Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an
<br />institutional lender.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposit.. or accounts of
<br />which arc insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution).
<br />Lender shall apply the Funds to pay said taxes, a<;sessments, insurance premiums and gmund rents. Lender may
<br />not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said
<br />assessment.. and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to
<br />make such a charge. Borrower and Lender may agree in writing at the time of execution of this Deed of Trust
<br />that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />required such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and
<br />debits to the Funds and the purpose for which each debit to the Funds wa<; made. The Funds arc pledged as
<br />additional security for the sums secured by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable
<br />prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount
<br />required to pay said taxes, assessments, insurance premiums and ground rent<; as they fall due, such excess shall
<br />be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of
<br />Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
<br />premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the
<br />deficiency in one or more payments a,> Lender may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise
<br />acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its
<br />acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
<br />by this Deed of Trust.
<br />3. Application of Payment... Unless applicable law provides otherwise, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to
<br />Lender by Bormwer under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of
<br />the Note.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's
<br />obligations under any mortgage, deed of tmst or other security agreement with a lien which has priority over
<br />this Deed of Trust, including Borrower's covenants to make payments when due. Borrower shall payor cause to
<br />be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may
<br />attain a priority over this Deed of Tmst, and leasehold payments or ground rents, if any.
<br />5. Ha7.ard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage," and such other
<br />hazards as Lender may require and in such amounts and for such periods a<; Lender may require.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unrea<;onably withheld. All insurance policies and renewals thereof
<br />shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form
<br />acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the tenns
<br />of any mortgage, deed of trust or other security agreement with a lien which ha,> priority over this Deed of Trust.
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<br />. -76N(NE) (0407)
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<br />CHL (08/05)
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<br />Page 3 018
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<br />Form 3828
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