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200904354
<br />premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f)
<br />any sums payable by Borrower to Lender, in accordance with the provisions of thei paragraph titled *rtgage
<br />Insurance, in lieu of the payment of mortgage insurance premiums. These items. "area called "Esc . w Items."
<br />Lender may, at any time, collect and hold Funds in an amount not to exceed them m amount a der for a
<br />federally related mortgage loan may require for Borrower's escrow account un er the federal ell Estate
<br />Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 601 et seq. (IF ESPA"),
<br />unless another Applicable Law that applies to the Funds sets a lesser amount. If so, Lender may, A gy time,
<br />collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the arnow 6T Funds
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or o h -,rwise in
<br />accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, ;instrumentali ty,! or entity
<br />(including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender sha 1 I ly the
<br />Funds to pay the Escrow Items. Lender may not charge Borrower for holding and appl� ing the Funs, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borro er interest on the Funds
<br />and Applicable Law permits Lender to make such a charge. However, Lender may requir Borrower t� p y a one-
<br />time charge for an independent real estate tax reporting service used by Lender in connec ; ion with this io , unless
<br />Applicable Law provides otherwise. Unless an agreement is made or Applicable Law re uires interest tc be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds: B rrpwer and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Lender shall give to B!b mower, with iit charge,
<br />an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which eacf debit to
<br />the Funds was made. The Funds are pledged as additional security for all sums secured byithis Security instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by Applicable Law Lender shall account to
<br />Borrower for the excess Funds in accordance with the requirements of Applicable Law. Il' the ; amount of the Funds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when due, Lends y', so notify Borrower in
<br />writing, and, in such case Borrower shall pay to Lender the amount necessary to makeup c deflcienc . $orrower
<br />shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund tl $orrower
<br />any Funds held by Lender. If, under the section titled Acceleration; Remedies, Lender shall acquir e o sell the
<br />Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds h�1dl by Lender a time
<br />of acquisition or sale as a credit against the sums secured by the Security Instrument.
<br />Application of Payments. Unless Applicable Law provides otherwise, all payments received by Lender shall be
<br />applied: first, to any prepayment charges due under the Note; second, to amounts payable under the sec on titled
<br />Funds for Taxes and Insurance; third, to interest due; fourth, to principal due; and lase, to any late
<br />hrges due
<br />under the Note.
<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, Imes and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground renis,; if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for axes and Insu. anee, or
<br />if not paid in that manner, Borrower shall pay them on time directly to the person owed pi tyrnent. At the quest of
<br />Lender, Borrower shall promptly furnish to Lender receipts evidencing the payments..
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)
<br />contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings vhich in the
<br />Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from theiliolder of �he lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. I� Le ader determine that any
<br />part of the Property is subject to a lien which may attain priority over this Security s ent, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or jr, of the actio isl set forth
<br />above within 10 days of the giving of notice.
<br />Hazard or Property Insurance. Borrower shall keep the improvements now existing o hereafter ere ted on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any ott e ,hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall' be main ta d in the
<br />amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall b 'osen by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Protection of Lender's Fights in the Property.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgLpe clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall prom give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give pr pt notice
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly 'Py Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to re�t ation or
<br />repair of the Property damaged, if the restoration or repair is economically feasible .and Lender's sec,% ty is not
<br />lessened. If the restoration or repair is not economically feasible or Lender's security',I would be lessened, the
<br />insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />any excess paid to Borrower. If Borrower abandons the Property, or does not answer within the number of days
<br />prescribed by Applicable Law as set forth in a notice from Lender to Borrower that ihei insurance !carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br />® 2004 -2008 Copyright Compliance Systems, Inc. 74ED -F34C - 2008.10.289 www.com Ilinncesystems.com
<br />Consumer Real Estate - Security Instrument DL2036 Page 2 of 6 r 1800- 968 -8322 au� 616- 956 -1868
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