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<br />200707696
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<br />Borrower warrants and will defend generally the title to the Property against all claims and demands, subjed to
<br />any encumbrances of record.
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<br />Borrower and Lender covenant and agree as follows:
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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 lUlder 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 and 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 PropL11y; (b)
<br />yearly leasehold payments or grOlUld 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 />fnsurance, 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 excelXI the maximum amount a lender lor a
<br />federally related mortgage loan may require for Borrower's escrow accOlUlt lUlder the federal Real Estate
<br />Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.c. Section 2601 et seq. ("RESPA"),
<br />unless another Applicable Law that applies to the FWlds sets a lesser amount. If so, Lender may, at any time,
<br />collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds
<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 deposit~ are insured by a federal agency, instrumentality, or entity
<br />(including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />FlUlds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow accowlt, or veri:l)ri.ng the Escrow Items, unless Lender pays Borrower interest on the Funds
<br />and Applicable Law permits 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 Lender in connection with this loan, unless
<br />Applicable Law provides otherwise. Unless an agreement is made or Applicable Law rlXJuires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, WitllOut charge,
<br />an annual aCCOWlting of the Funds, showing credits and debits to the Funds and the purpose tor which each debit to
<br />the Funds was made. The Funds arc pledged a~ additional security for all sum~ secured by this Security Instrument.
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<br />Ifthe Funds held by Lender exceed the amounts permitted to be held by Applicable Law, Lender shall account to
<br />Borrower for the excess FWlds in accordance with the requirements of Applicable Law. If the amount of the Funds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in
<br />writing, and, in such case Borrower shall pay to Lender the amount 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 SCL'Urity Instrument, Lender shall promptly rclimd to Borrower
<br />any Funds held by Lender. If~ under the section titled Acceleration; Remedies, Lender shall acquire or scll the
<br />Property, Lender, prior to the 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 seLwed by the Security Instrunlent.
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<br />Application of Payments. Unless Applicable Law provides otherwise, all payments received by Lender shall be
<br />applied: first, to any prepayment charges due wlder tile Note; second, to amounts 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 />under the Note.
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<br />02004-2007 Copyright Compliance Systom,. Ill", 8C9C.6E95 - 2007,01.201
<br />ComnlInet R"iiJ. Estate: . Security Illstnllnent DL2036
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<br />Pst,.>e 2 0[8
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<br />WWW.(lOl:rl.pIiw:wesYllte1.nll.(1Om
<br />800-968.8522. Fax 616-956-186R
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