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2010075�9
<br />The Funds shall be held in an institutian whose deposits are insured by a federal agency, instrurr�entality, or entity
<br />(including Lender, if Lender is such aan institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />Funds to pay the Escrow Items. Lender may nat charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless I.ender pays Bon'owar interest on the Funds
<br />and Applicable Law permits Lender to make such a charge. However, Lender may require $orrower to pay a one-
<br />time charge for an independent real estate tax reporting service used by I.ender 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, withnut charge,
<br />an annual accounting of the Funds, showing credits and debits to the Funds and the purpnse for which each debit to
<br />the Funds was made. The Punds are pledged as additional sacurity for all sums secured by this Security Instrurnent.
<br />If the �'unds 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. Tf the amount of the Funds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender znay so notify Borrower in
<br />writing, and, in such case Boart'ower shall pay to Lender the amount necessary to make up the def ciency. Borrower
<br />shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in £ull of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any �unds held by Lender. If, under the section titled Acceleration; Remedies, Lender shall acquire or scll the
<br />Properry, 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 secured by the Security Instrument.
<br />Applicatlon 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; secnnd, to amounts payable under thc section titled
<br />Funds for Taxes �nd Insurance; thard, ta interest due; fourth, ta principal due; and last, to any late charges due
<br />under the Note.
<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Prop�rty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for Taxes and Insurance, or
<br />if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. At the request of
<br />Lender, Borrower shall promptly £urnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless $orrower: (a)
<br />agrees in writing to the payment of the abligatian secured by the lien in a manner acceptable to Lender; (b)
<br />contests in gaad faith the lien by, or defends against enforcement of the lien in, lagal proceedings which in the
<br />Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br />part of the Property is subject to a lien which may attain priority over this Security Instrument, I.ender may give
<br />Borrower a notice identifjring the lien. Borrowar shall satisfy the lien or take one or more of the actions set forth
<br />above within 10 days of the giving of notice.
<br />Hazard or �roperty Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Properry insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by
<br />Bozrawer subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, Lender rnay, at Lender's optian, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Protection of Lender's Rights In the Property.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower sha11 give prompt notice
<br />-- to fhe insurance carrier and Lender. L.ender may make proof of loss if niot made promptly by Borrawer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not
<br />lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, tha
<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 Borrawer. If Borrower abandons the Prape�rty, ar does not answer within the number of days
<br />prescribed by Applicable TJaw as set forth in a notice from Lender to Borrower that the insurance carrier has
<br />offered to settle a claim, then Lender may callect the insurance proceeds. Lender rnay use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instrument, whether or not then due. 'I'he period of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments referred to in the sections titled Payment of Principal and Interest;
<br />Late Charges and Funds for Taxes and Insurance or change the amount of the payments. IF under the section
<br />titled Acceleration; Remedies, the Property is acquired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured by this Security Instrument immediately prior to the acquisition.
<br />� 2004-2009 CumpGance Systems, Inc. 002D-8E06 - 2009.12.368
<br />Consumer Resl Estate - Security lns[nimrnt DL2036 Page 2 of 6 www.complianeesystems.com
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