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<br />Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a
<br />federally related mortgage loan may requi�e for Borrower's escrow account under the federal Real Estate
<br />Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"),
<br />unless another Applicable Law that applies to the Funds sets a lesser amount. If so, Lender may, at any time,
<br />collect and hold Funds in an amount not to exceed the lesser amount. I.cnder may estimate the amount of Funds
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
<br />accordance with Applicable Law.
<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 Pederal Home Loan Bank. Lender 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 Items, unless I�nder pays Borrower interest on the Funds
<br />and Applicable Law permits Lender to make such a charge. However, Lender may require Borrower ta pay a one-
<br />time charge for an independent real estate tax reporting service used by Lender in conzaection with this loan, unless
<br />Applicable Law provides otherwise. Un.less 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 an the Funds. Borrower and Lender may
<br />agxee in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge,
<br />an annual accounting of tk�e Funds, showing credits and debits to the Funds and the purposa for which each debit to
<br />the Funds was made. The Funds are pledged as additional security for all sums secured by this Securiry Instrument.
<br />If the Funds held by L,ender exceed th� 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. If the amount of the Funds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when dua, 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 no more than twelve monthly payments, at L.ender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the section titled Acceleration; Remedies, I.ender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by I.ender at the time
<br />of acquisition or sale as a credit against the sunns secured by the Security Instiument.
<br />Application 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; second, ta amounts payable under the section titled
<br />Funds far Taxes and Insurance; third, to interest due; fourth, to principal due; and last, to any late charges due
<br />under the Note.
<br />Charges; Liens. Borrower shall pay all taaces, assessments, charges, fines and impositions attnibutable to the
<br />Property which may attain priority over th'is Security Instrument, and leasehold payznents or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for Taxes and Insarance, or
<br />if not paid in that manner, Borrower shall pay them on time directly to the person owed payrnent. At the request of
<br />Lender, Borrower shall promptly fiu�nish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instivment unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Leander; (b)
<br />cont�sts 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 preven.t the enforcement af the lien; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating tlae lien to this 5ecurity Instrument. If Lender deternunes that any
<br />part of the Property is subject to a lien which may attain priority aver this Security Instrument, I.ender may giv�
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien. or take one or more af the actions set forth
<br />above within 10 days of the giving of notic�.
<br />Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any ather hazards,
<br />including �loods or flooding, for which Lender requires insurance. This ixzsurance shall be maintained in the
<br />amounts and for the peariods that Lender requires. The insurance carrier providing the insurance shall be chosen by
<br />Bonower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails ta maintain
<br />coverage described above, I.ender 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 Lender requires, $orrower shall promptly give to
<br />Lender 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 nnay make proof of lass if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds sha11 be applied to restoratian or
<br />repair of the Properiy damaged, if the restoration or repair is economically feasible at�d I..ender's security is not
<br />lessened. If the restoration ar repair is not economically feasible or I.ender's security would be lessened, the
<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 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 fram Lender to Borrower that the insurance carrier has
<br />offered ta settle a claim, then I.ender may collect the insurance proceeds. Lendar 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 />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />¢2 2004-2009 Compliancc Systcros, Inc. 002b-C3EA - 2009.12368
<br />Consumer Rcal Estate - Seeurity lnstnunen[ DL2036 Page 2 of 6 www.eompliancesys[ems.com
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