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<br />200707070
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<br />Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due Wlder the
<br />Note.
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<br />Applicable Law. As used in this Security Instrument, the term "Applicable Law" shall mean all controlling
<br />applicable federal, state and local statutes, regulations, ordinances and administrative rules :md orders (that have
<br />the effect of law) as well as all applicable final, non-appealable judicial opinions.
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<br />Funds for Taxes and Insurance. At Lender's request and subject to Applicable Law, Borrower shall pay to
<br />Lender on the day periodic payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a)
<br />yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)
<br />yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance
<br />premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (I)
<br />any sums payable by Borrower to Lender, in accordance with the provisions of the paragraph titled Mortgage
<br />Insurance, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items."
<br />Lender may, at any time, collect and hold Funds in an amount not to exceed tile maximum amount a lender for a
<br />federally related mortgage loan may require for Borrower's escrow account lUlder the federal Real Estate
<br />Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.c. Section 2601 et scq. ("RESPA"),
<br />\Ulless anotller Applicable Law that applies to the FWlds sets a lesser amoWlt. If so, Lender may, at any time,
<br />collect and hold Funds in an amowlt not to exceed the lesser amo\Ult. Lender may estimate the amount of Fwuls
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
<br />accordance with Applicable Law.
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<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or (,1ltity
<br />(including Lender, if Lend{,'/' is such an institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />Funds to pay the Escrow Items. Lender may not charge Borrower tor holding and applying the FWlds, annually
<br />analyzing the escrow account, or veritying the Escrow Items, lwless Lender pays Borrower interest on the Funds
<br />and Applicable Law permit~ Lender to make such a charge. However, Lender may require Borrower to pay a one-
<br />time charge for an independent real estate tax reporting service used by Lend(,'/' in connection with this loan, wlless
<br />Applicable Law provides otherwise. Unless an agreement is made or Applicable Law requires interest to he paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the F\Ulds. Borrow{,,/, and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge,
<br />an annual acco\Ulting of the Funds, showing credit~ and debits to the FWlds and the purpose for which each debit to
<br />the Funds was made. The Funds arc pledged as additional security for all sums secured by tllis Security InstTtllllent.
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<br />Ifthe F\Ulds held by Lender exceed the amounts permitted to be held by Applicable Law, Lender shall accmwt to
<br />Borrower for the excess Funds in accordance with the requirements of Applicable Law. If tile amount of the Funds
<br />held by Lender at any time is not sufficient to pay tile Escrow Items when due, Lender may so notify Borrower in
<br />writing, and, in such case Borrower shall pay to Lender the amo\Ult necessary to make up the deficiency. Borrower
<br />shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
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<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any F\Ulds held by Lender. If~ \Ulder tlle section titled Acceleration; Remedies, Lender shall acquire or sell the
<br />Property, Lender, prior to tlle acquisition or sale of the Property, shall apply any Funds held by Lender at the time
<br />of acquisition or sale as a credit against the sums secured by the Security Instrument.
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<br />Application of Payments. Unless Applicable Law provides otherwise, all payments received by Lend(,'/' shall be
<br />applied: first, to any prepayment charges due \Ulder tile Note; second, to amOlwts paYdble under the section titled
<br />Funds for Taxes and Insurance; third, to interest due; fourth, to principal due; and last, to any late charges due
<br />\Ulder the Note.
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<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or growld rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for Taxes and Insurance, or
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<br /><02004-2007 Copylight Compliance Sy>lorrm, h",. 8C9C.6326 - 2007.01.201
<br />ComJumer Real Estate - Security I TlItnu'Ilc:ll.t DL2036
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<br />Poge 2 of8
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<br />www.complia.nceSYlIternS.CUIII
<br />800-96R-RS21- Fa>< 616.956.1868
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