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<br />200708773
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<br />prescribed by 12 CFR 226.32 at Icast thrcc business days prior to the execution of the Note and this Security
<br />Instrument, or as otherwiserequired by 12 CFR 226.31. Borrower and Lender further acknowledge and agree that
<br />this Security Instrument will secure additional debt subject to 12 CFR 226.32 only if Lender satisfies the necessary
<br />requircments imposcd on such debt imposed by 12 CFR 226.32 and Applicable Law.
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<br />Borrower and Lender covenant and agree as follows:
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<br />Paymcnt 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 under 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 Insurancc. At Lender's request and su~iect to Applicable Law, Borrower shall pay to
<br />Lender on the day periodic payments are due WIder the Note, lwtil 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 amOlwt not to exceed the maximum amount a lender for a
<br />federally related mortgage loan may require for Borrower's escrow account under tlle 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 Funds SL1s a lesser amount. If so, Lender may, at any time,
<br />collect and hold FWlds in an amount not to exceed the lesser amOWlt. Lender may estimate the amowlt of F\wds
<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 entity
<br />(including Lender, if LE-1Hler is such an institution) or in any Federal Home Loan Bank. Lt.'1ldt.1' shall apply the
<br />FWlds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unkss Lender pays Borrower inlL1'est 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 requires 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, without charge,
<br />an annual accounting oftlle F\wds, showing credits and debits to the Funds and the purpose for which each debit to
<br />the F\wds was made. The Funds are pledged as additional security for all sums secured by this Security Instrunlent.
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<br />If the FWlds held by Lender exceed the amounts permitted to be held by Applicable Law, Lcnder shall account to
<br />Borrower for the excess Funds in accordancc with the requirements of Applicable Law. IHhe amount ofthe 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 casc Borrower shall pay to Lender the amowlt 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 Funds held by Lender. lf~ under the section titled Acceleration; Remedies, Lender shall acquire or sell the
<br />Property, LL1Hler, 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 secured by the Security Instrunlent.
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<br />Application of Payments. Unless Applicable Law providcs otherwise, all payments received by Lender shall be
<br />applied: first, to any prepayment charges due wuler the Note; second, to amounts payable under the section titled
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<br />iG 2004-2007 COPYlight Compliance S,.,.""". I"c. RC9C-34C9 - 2007.01.201
<br />C011llwnerReal Esl.ate - Security )lIlItr1.lmeIllDL2036
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