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200907784
<br />The Punds shall be held in an institution whose deposits are insured by a federal agency, Instrumentality, or amity (including
<br />Lender, if Lender is an institution whose deposits are sn insur®d) or in any Federal Home Loan Bank. Lender shall apply the Funds to
<br />pay the Escrow Items no later than the time specified under ROSPA. Lender shall not charge Borrower for holding and applying the
<br />Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lenderpays Borrower interest on the Funds and
<br />Applicable Law perrnrts Lender to make such a charge. Unless an agreement ie made in writing or Applicable Law requires interest to
<br />ba pa(d on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can
<br />agree fn writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual
<br />accounting of the Funds as required by RESPA.
<br />Ii there is a surplus of Funds held In escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in
<br />accordance with RESPA. If there is a shonage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as
<br />required by RESPA, and Borrower shall pay to Lander the amount necessary to make up the shortage in accordance with RESPA, but
<br />in no more than until Lender's month)y ppayyments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender
<br />shall notify Borrower as r®quired by RESPA, and borrow®r shall pay tv Lender the amount necessary to make up the deficiency in
<br />accordance with RESPA, but in nc mare than until Landar's monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shelf promptly refund to Borrower any Funds held
<br />by Lender.
<br />4. Charges; ).lens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property
<br />which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, If any, and Community
<br />Association Dues, Fees, and Assessments, 'if any. To the extent that these items are Escrow Items, Borrower shall pay them in the
<br />manner provided in Section 9.
<br />Borrower shall promptly discharge any li®n which has priority over this Security Instrument unless Borrower. (a) agrees In
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is
<br />perforrning such agreement; (b) enntests the lien in good faith by, or defends against enforcement of the lien In, legal roceedings
<br />which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but on~y until such
<br />proceedings are concluded; or (c secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br />this 5ecunty Instrument, If Lander determines that any part of the Property is aub)'ect to a Ilan which can attain priority ovor this
<br />Security Instrument, Lender may give Bvrrvwer a notice identifying the lien. Within 10 days of the date on which that notice is given,
<br />Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower to pay none-time charge for a real estate tax verification and/or reporting service used by Lender
<br />in connection with this Laan.
<br />6. Properly Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to,
<br />earthquakes and floods, for which Lander requires insuranve. This insurance shall be maintained in the amounts (including
<br />deductible levels) and far the periods that Lender requires. What Lender requires pursuant tv the preceding sentences can changge
<br />during the term of the lAan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right fo
<br />disapprove Borrower's choice, which right shall not be exercised unreasonably. Lend®r may require Borrower to pay, in connection
<br />with Phis Loan, either: (a) a one-time charge for flood zone determination, cenification and tracking services; or (b) a one-time charge
<br />for flood zone determination and certification services and subsequent charges each time remapppinggs or similar Changes occur
<br />which reasonably might affect such determination or cenitication. Borrower shall also be responsibleior the payment of any fees
<br />imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting
<br />from an objection by Borrower,
<br />If Borrower tails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option
<br />and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such
<br />coverage shall cover Lender, but might or might not protect Bvrrvwer, Borrower's equity in the Property, yr the contents of the
<br />Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in affect. Borrower
<br />acknowledges that the Host of the insurance coverage so obtained might significantly ®xceed the cost of insuranve that Borrower
<br />could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by
<br />this Security Instrument. These amounts shall bear interest at the Note rate #rom the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lend®r to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lenders right tv disapprove such
<br />policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender
<br />shall have the right to hold th®paliv3es and renewal certificates. If Lander requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. If Borrower obtains an form of insurance coverage, not otherwise required by Lender, for
<br />damage to, or destruction oi, the Property, such policy sha~ Include a standard mortgage clause and shall name Lender as
<br />mortgagee and/or as an additional loss payee.
<br />In the event of loos, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss ff
<br />not made prompty by Borrower, Unless Lander and Borrow®r otherwise agree in writing, any insurance proceeds, whether or not the
<br />underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, ff the restoration or repair Is
<br />economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the rigght to
<br />held sueh insurance proceeds until Lender has had an opportunity to Inspect such Propeny to ensure the work has been vvmpleted
<br />to Lender's satlataotlon, provided that such insp®ation shall be undertaken prompty. Lender may disburse proceeds for the repairs
<br />and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in
<br />writing or Applicable Law requires interest to b® paid on such insurance proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such proceeds. Fees far public adjusters, or other third ponies, retained by eorrawer shall not be paid out aY
<br />the insurance proceeds and shall bs the sale obligation of Borrower. If the restoration or repair is oat economically feasible or
<br />Lenders security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether yr not then due, with the ®xcess, if any, paid to the Borrower. Such insurance proceeds shall be applied in the order
<br />provided far In Section 2.
<br />If borrower abandons the Property, Lender may Tile, negotiate and settle any availablo insuranve claim and related matters. If
<br />Borrower does not respond within 3u days to a notice from Lander that the insurance carrier has offered tv settle a claim, then L®nder
<br />may negotiate and settle the clam. The 3l]-day poriod will begin whan the notice is given. In either event, or if Lender acquires the
<br />Propeny under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insuranc® proceeds in an
<br />amount not to exceed the amounts unpaid under the Nvte or this Security Instrument, and (b) any other of Borrowers rights (other
<br />than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Propeny, insofar as
<br />such rights are applicable to the coverage of the Propeny. Lender may use the insurance proceeds either to repair or restore the
<br />Propeny onto pay amounts unpaid under the Note orthis Security Instrument, wh®ther or not then due.
<br />6. Occupancyy. Borrower shall occupy, establish, and use the Propeny as Borrower's principal residence within 60 days
<br />after the execution pf tFis Security Instrument and shall continue to occupy the Property as Borrower's principal residence Tor at least
<br />one year attar the date of occupancy, unless Lander otherwise agrees In writing, which consent shall not be unreasonably withheld, or
<br />unless extenuating cirnumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protettlon cf the Property; Inspections. Borrower shall not destroy, damage or
<br />impair the Property, allow the Property to deterloraie or commit waste vn the Propeny. Whether or not Borrower is residing m the
<br />Propeny, Borrower shall maintain the Property in order to prevent the Propeny from deteriorating or decreasing in value due to Rs
<br />condition. Unless R is determined pursuant to Section 5 that repair or restoration is not ®conomically feasible, Borrower shall
<br />promptly repair the Propeny if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restor(ng the Property only'rf
<br />Lander has released proceeds for suvh purposes. Lender may disburse prone®ds for the repairs and restoration in a single payment
<br />or in a series of progress payments as the work is completed. Ii the insurance or condemnation proceeds are not sufficient to repair
<br />or restore the Prapany, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />NEaFASKA~InOie Femily~ennie aa.o~rodrra Mac UNIFORM iN$TiillMENr roan 3GT6 7/07 (page 3 of 7 pages)
<br />8028 NH OOT O1Po1 P63
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