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<br />due on the basis of current daCa and reasonable estimates of expenditures of future �scrow ltems or otherwise in
<br />accordance with Applicable I�aw.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including Lender, if Lender is such an institution) or in any Federal Hame I,oan Bank. Lendee shall apply the
<br />Funds 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 Ttems, unless Lender pays Borrower interest on the Funds
<br />and Applicable Law perniits Lender ta 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 writin�, however, tliat interest shall be paid on the Funds. Lender shall give to Borrower, withc�uC charge,
<br />an annual acc�unting of the Funds, showing credits and debits to the Funds and the purpose far which each debit to
<br />the F'unds was made. I'he Funds are pledged as additional security for all sums secured by this 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 Nunds in accordance with the reyuirements of Applicable Law. If the amount of the 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 casa Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower
<br />shall make up the deficiency in no more than twelve monthly payrnents, at Lender's sole discretion.
<br />Upon payment in full of all smns secured by this Security lnstrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under th� section titled Acceleration; Remedies, Lender shall acyuire or sell the
<br />Property, 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 a�ainst the sums secured by the Security Instrument.
<br />Application of Payments. Unless Applicable Law provides otherwise, all payrnents received by Lender shall be
<br />applied: tirst, to any prepayment charges due uaider the Note; second, to amounts payabla under the section titled
<br />Funds for Taxes and Insurance; third, to interest due; fourth, to principal due; and last, to any late charges due
<br />under the Note.
<br />Charges; Licns. Borrower shall pay all taxes, assessments, charges, fines and impositions attributah1e to the
<br />Property which n�ay attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />�3orrower shall pay these obligations in the manner provided in section titled Funds far Taxes and Insuranee, or
<br />if not paid in that txianner, Borrower shall pay Chem on tiine directly to the person owed payment. At the request of
<br />l.ender, Borrower shall promptly furnish to Lender receipCs evidencing the paymenls.
<br />Borrower shall prornptly discharge any lien which has priority c�ver this Security instrument unless I3orrower: (a)
<br />agrees in writin�; to the payment of the obligation secured by the lien in a manner acceptable to l�ender; (b)
<br />contests in good faifh th� lien by, or defends against enforcement of the lien itt, legal 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 />agreetnent satisfactory to Leiider subordinating the lien to this Security lnstrument. If Lender determine5 that any
<br />part of the Property is suk�ject to a lien which may attain priority over this Security Instrument, Lender may give
<br />13or►'ower a notice identifying tihe lien. Borrower shall satisfy the lien or take one or rnore of the actipns set Forth
<br />above within 10 days of the giving of notice.
<br />Hazard or Property Insurance. Horrawer shall keep tlae improvements now existing or hereafter erected on the
<br />Yroperty insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br />including floods ar tlooding, for which Lender requires insurance. This insurance shall be rnaintained in the
<br />amounts and for the periods fhat Lender requires. "�"he insurance carrier providin� the insurance shall be chosen by
<br />Borrower subj�ct to Lender's approval which shall not be unreasonably withheld. If Borrower fails to rnaintain
<br />coverage described above, Lender may, at T_ender's option, obtain coverage to protect Lender's rights in the
<br />__ Property in accordance with section titled Protection of Lend�r'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 r�newals. If Lender requires, Borrower shall promptly give to
<br />I.end�r all receipts of paid premiums and renewal notices. in the event of loss, Borrower shall give prompt notice
<br />to the insurance carrier and Lender. Lender may make prool of loss if not made promptly by Borrower.
<br />Unless [,ender and Borrower otherwise agree in writin�, insurance proceeds shall be applied ta restoration or
<br />repair of the Property dama�ed, 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 I�ender's security would be lessened, the
<br />insurance proceads shall be applied to the sums secur�d by this Security Instrument, whether or not then due, with
<br />any excess paid to k3orrower. If Borrower abandons the Property, or does not answer within the number of days
<br />prescribed by Applicable Law as set forth in a nocice from Lender to I3orrower that tl�e insurance carrier has
<br />offered to settle a claim, then Lender may collect tl�e insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The period of
<br />tirne for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Borrower othcrwisa agree in writing, any application of pr�cecds to principal shall not extend
<br />or postpone the due date of the payments referred to in the sections titled P�yment of Principal and Interest;
<br />Late Charges and Funds for Taxes and lnsurance ar change the amount of the payments. If under the section
<br />titled Acceleration; Remedies, the Property is acyuired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting trom damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured by this Security Instrunaent imm�diately prior to the acquisition.
<br />�'� 20(W-2p09 Con��pliw�ca Sys�ems, luc. UU21]-B�bC - 2U09.123ti8
<br />Co�uumcr Rcal Estatc - Sccurity Instrumcnt D1,2036 Pagc 2 af ti www.cumplia�icesyste�ns.com
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