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201048235
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or �ntity
<br />(including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. I.,ender shall apply the
<br />Funds to pay the Escrow Items. Lender raay not charge Saarrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless I.endcr pays Borrower interest on the Futids
<br />and Applicable Law pernuts Lender to znake such a charge. Hawever, Lender may require $orrower 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 sha11 not be required to pay Borrower any interest or earnings on the Funds. Bort'ower and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge,
<br />an annual accounting of the Punds, sktowing credits and debits to the Funds and the purpose for which each debit ta
<br />the Funds was made. The Funds are pledged as additional security for all sums secuared 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 Funds in accordance with the requicements of Applicable Law. If the amouxtt of the Funds
<br />held by Lender at any time is not suffcient to pay the Escrow Items when due, Lender may so notify Borrower in
<br />writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower
<br />shall make up the deficiency in na more than twelve monthly payments, at I.ender's sole discretian.
<br />Upon payment in full of all sums secured by this Securiry Instrument, Lender shall promptly refund ta Borrower
<br />any Funds held by Lender. If, under the section titled Acceleration; Remedies, L,�nder shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Prape�ty, shall apply any Funds held by Lender at the time
<br />of acquisition or sals as a credit against the sums secured by the Security Instnunent.
<br />Application of Payments. Unless Applicable I.aw provides otherwise, all paynnents received by Lender shall be
<br />applied: first, to any prepayment charges due under the Note; second, to ainounts payable under the sectic�n titled
<br />Funds for Taxes and Insurance; third, to interest due; fourth, to principal due; and last, to any lat� charges due
<br />under the Note.
<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and ir,npositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these abligations in the manner pravided 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 furnish to I.ender 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 payxnent of the obligation secured by the lien in a maruier acceptable to Lender; (b)
<br />contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the
<br />Lender's opinion operate to prevent the en£orcement 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 deternunes that any
<br />part of the Property is subject ta a lien which may attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or xnore of the actions set forth
<br />above within 10 days of the giving of notice.
<br />Hazard or Property Insurance. Borrower shall keep the improvements now existing ar hereafter erected on the
<br />Property insured against lpss by fire, hazards included within the term "extended coverage" and any other hazards,
<br />including floods or flooding, for which Lendex rec�uires 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 />Sorrower 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 Proteetion 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 L.ender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt natice
<br />to t�ie insurance carrier and Len.der. Lender may make proof .of loss if not made promptly by Borrawer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of th.e 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, the
<br />insurance proceeds shall be applied to the sums secured by this Security Instnunent, whether or not then due, with
<br />any excess paid ta 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 the insurance carrier has
<br />offared to settle a claim, then Lender may collect the insurance prpceeds. Lender may use the proceeds to repair or
<br />restore the Property or ta pay sums secured by this Security Instrument, whether or not then due. The period of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />LTnless Lender and Borrower otherwise agree in wariting, any application of proceeds to principal sha11 not extend
<br />or postpone the due date of the payments referred to in the sections titled Payment of Prine3pal 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 />procceds 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 �nstrument immediately prior to the acquisition.
<br />�+ Y004-2009 Campliancc Systems, Inc. 002D-9490 - 2009.12.368
<br />Consumcr Rcal Estate - Security �nstrumwt DL2036 Page 2 0£6 www.compliancesystcros.eom
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