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<br />anypayment or partial payment insufficient to bring the Lvan current, without waiver of any rights hereunder yr prejudice to
<br />its rights to refuse such payment or partial payments in the future, but i.,ender is not obligated to apply such payments at the
<br />time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay
<br />interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current.
<br />if Borrower ddoes not do so within a reasonable period of time, Lender shall either apply such funds or return them tv
<br />Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately
<br />prior to foreclosure. No oflset or claim which Borrower might have now or in the future against Lender shall relieve
<br />Borrower from making payments due under the Note and this Security Instrument or performing the covenants and
<br />agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. L;xcepl as otherwise described in this Section 2, all payments
<br />accepted and applied byy Lender shall be applied in the following order of priority: (a) interest due under the Note;
<br />(b) rindpal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment
<br />in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other
<br />amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount
<br />to pay any late charge due, the payment maybe applied to the delinquent payment and the late charge. if more than one
<br />Pertvdic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic
<br />Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is
<br />applied to the full payment of one or more Pertvdic Payments, such excess may be applied to'any late charges due. Voluntary
<br />prepayments shall be applied first to any prepayment charges and then as described in the Note.
<br />Any application ofpayments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note
<br />shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note,
<br />until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and
<br />other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold
<br />payments or ground rents on the Property, if any; (c) premiums for any and all insurance required byy Lender under Section 5;
<br />and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to i,ender in lieu ofthe payment ofMortgage
<br />Insurance premiums in accordance with the provisions of Section 10. These items arc called "Escrow items." At origination
<br />or at any time during the term ofthe Loan, Lender may require that Community Association Dues, Fees, and Assessments, if
<br />any, be escrowed by Borrower, and such dues, fees and assessments shall be an Fscrow Item. Borrower shall promptly
<br />furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items
<br />unless Lender waives Borrower's obligation to pay the Funds for any or all Fscrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for any or all Escrow items at any time. Any such waiver may only be in writing, In the
<br />event of such waiver, Borrower shall ppay directly, when and where payable, the amounts due for any Escrow Items for which
<br />payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing sucks
<br />payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide
<br />receipts shall for all purposes he deemed to be a covenant and agreement contained to this Security Instrument, as the phrase
<br />"covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver,
<br />and Borrower fails to pay the amount duo for an lscrow Item, Lender may exercise its rights under eclion 9 and pay such
<br />amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Londcr may revoke the
<br />waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation,
<br />Borrower shall pay to k~ender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at
<br />the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. lender
<br />shall estimate the amount of Funds due on the basis of current data and reasonable estimates ofexpenditures of future Escrow
<br />Items or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an instttution whose deposits are insured by a federal agency, instrumentality, orentity
<br />(including Lender, if lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. lender shall
<br />apply the Funds to pay the Escrow Items no later than the time spocified under RESPA. Lender shall not chargo Borrower
<br />for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless. Lender
<br />pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. tlnless an agreement is
<br />made in writing or Applicable Law requires interest tv be paid on the Funds, Lender shall not be required to pay Borrower
<br />any interest or earnings vn the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the
<br />Funds. Lender shall give to Burrower, without charge, an annual accounting of the Funds as required by RESPA.
<br />if there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account io Borrower for the
<br />excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under KESPA, Fender
<br />shall notify Borrower as required by RESPA, and Borrower shall ppay to Lender the amount necessary to make up the
<br />shortage in accordance with RESPA, but in no more than 12 monthly~iayments. If there is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to I,enderthe
<br />amount necessary to make up the deficiency in accordance with RESPA, but m no more than 12 monthly payments.
<br />Upon payment in full ofall sums secured by this Security Instrument, Lender shall promptly rofund to Borrower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable tv the
<br />Property which can attain priority over this Security Instrument, leasehold payments or ground rents nn rho Property, if any,
<br />and Community Association Dues, Fees, and Assessments, if any. "1'o the extent that these items are Escrow Items, Borrower
<br />shall pay them in the manner provided in Section 3.
<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 obli orlon secured by the lien in a manner acceptable to Lender, but only so long as
<br />Borrower is perfotming such agreement; (b~ contests the lien in good faith by, or defends against enforcement ofthe lien tn,
<br />legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are
<br />pending, but only until such proceedings are concluded; or (c) secures from the holder ofthe ]ken an agreement satisfactoryto
<br />Lender subordinating the lien to this Security Instrument. If Lender determines that any part of rho Property is subject to a
<br />lien which can attain priority over this Security Instrument, Lender maY give Burrower a notice identifying the lien. Within
<br />10 days of the date vn which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth
<br />above in this Section 4.
<br />Lender may require Borrower to pay aone-time charge fora real estate tax verification and/or reporting service
<br />used by Lender in conncetion with this Loan.
<br />S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against Ivss by fire, hazards included within the term "extended coverage," and any other hazards including, but not
<br />limited to, earthquakes and floods, for which Lender royuires insurance. This insurance shall be maintained in the amounts
<br />(including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding
<br />sentences can change during the term of the Loan. 1'he insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably.
<br />Lender may require Borrower to pay, In connoction with this Lvan, either: (a) a nne-time charge for flood zone
<br />determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification
<br />services and subsequent charges each time remappings or similar changes occur which reasonably might atlect such
<br />NI~BRASIGA-Single Family-Fannie Mae/Freddie Mac UNIFORM 1NSTRUMEN'I' (MERS) Form 3028 1/Ol (page 3 of 8 pages)
<br />12439.CV (11/07) 6898908440 Creative Thinking, Inc.
<br />('.17T0(0028dcdd)
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