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<br />Lender may, at any tim�, collect and hold Funds in an amount not to exceed the maximum amount a lender for a
<br />federally related mortgage laan may require for Borrower's escrow account under the Federal Real Estate
<br />Settlement Proceduras Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"),
<br />unless another Applicable Law tk�at 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. Lender may estimate the amount of Fun.ds
<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 Punds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including I.ender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />Funds to pay the Escrow It�ms. Lender may not charge Borrawer for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds
<br />and Applicable Law permits Lender to 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 I.ender in cannection 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 �'unds. Borrower and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Lender shall give ta Borrower, withaut charge,
<br />an annual accounting of the �'unds, sho�+ing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds was made. The Funds are pledged as additional security for all suz�ns secured by this Security Instrument.
<br />If the �'unds held by Lender exceed the amounts permitted to be held by Applicable I.aw, 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 titne is not sufficient to pay the Escrow Items when due, I.ender may so notify Borrower in
<br />writing, and, in such case Borrower sha11 pay to Lender the amount necessary to make up the deficiency. Borcower
<br />shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall protnptly refund to Borrower
<br />any Funds held by Lender. If, under the section titled Acceleratlon; Remedies, Lender shall acquire 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 against the sums secured by the Security Instrument.
<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, to amounts payable under the sectian 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; �.iens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable ta the
<br />Property which may attain priarity over this Security Instrument, and leasehold paytnents or ground rents, if any.
<br />Sorrower 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 oan time directly to the person owed payznent. At the request of
<br />Lender, Borrower shall promptly fuxnish to I.ender receipts evidencing thc payments.
<br />Borrower shall proznptly discharge any lien which has priority over this Security Inst�ument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to L.ender; (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 opinian 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 ta a lien which may attain priority over this Security Instrument, I.ender may give
<br />Borrower a notice identifying the lien. Borrower 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 />Iiazard or Property Insurance. Borrower shall keep the iznprovements now existing or hereafter erected on the
<br />-- Prpperry 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 />araounts and for the periods that Lender raquires. The insurance carrier providing the itlsurance shall be chosen by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If $ortower fails to maintain
<br />coverage described above, Lender may, at Lender's optian, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Pratection of Lender's Rights in the Property.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard martgage clause.
<br />Lender shall have the right to hold the policies and renewals. If I.ender requires, Borrower shall promptly give to
<br />I,ender all receipts of paid premiums and renewal notices. In the event of loss, Sorrower shall give prompt notice
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unlass Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied ta restoration or
<br />repair af 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 ba 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 Borrawer abandons the Property, or does not answer within the ntunber of days
<br />prescribed by Applicable L.aw as set forth in a notice from Lander to Borrower that the insurance carrier has
<br />o£fered to settle a claim, then Lender tnay collect the insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instnunent, whether or not then due. The pe�riod of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />� 2004-2009 Compliance Sys[ems, lnc. 002D-27H6 - 2pp9.12368
<br />Consumer Real Es[a[e - Security Iustn�ment PL2036 Page 2 of 6 www.complianeeayatems.cam
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