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<br />The Punds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including �,ender, if Lender is such an institution) nr in any Federal Home I.oan Bank. Lender shall apply the
<br />Funds to pay the Escrow Items. T ender may not charge Borrowez' £or holding and applying the Funds, a:nnually
<br />analyzing the escrow account, or verifying the Escrow Itetns, unless Lender pays Borrawer interest an 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 Lender in conuzection 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 Boxrower, without charge,
<br />an annual accaunting of the Funds, showing credits and debits to the Funds and the purpose fo;r which each debit to
<br />the Funds was made. The Funds are pledged as additipnal security For all surns secured by this Security Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by Applicable Law, Lender sk�all account to
<br />Bozx'ower for the excess Funds in accordance with the requirements of Applicable Law. If the amount of the Fuzzds
<br />held by Lender at any time is not sufficient to pay the Escrow Itexns when due, Lender may so notify Barrower 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 moare than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full of all surns secured by this 5ecurity Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, unclex the section titled. Acceleration; Remedies, Lender shall acquire or se11 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 receivad by Lender shall be
<br />applied: first, to any prepayment charges due under the Note; second, to amounts payable under the section titled
<br />Funds for Taxes and Tnsurance; third, to interest due; fourth, tp 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 />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Boar�'ower 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 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 payment of the obligation sacured by the lien in a manner acceptable to Lender', (b)
<br />contests in good faith the lien by, or defends against en£orcement of the lien in, legal proceedings wktich 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 Prpperty is subject to 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 more of the actions set £orth
<br />above within 10 days of th� giving of notice.
<br />Hazard ar Property Insuranee. 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 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 Lend�r requires. The insurance carxier providing the insurance shall be chosen by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to rnaintain
<br />coverage described above, Lender may, at Lender's optian, obtain cove�'age 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 znortgage clause.
<br />�. �_. _._.._ ___ ...Lender shall have the right tQ.hold the policies and renewals. If L,endez xequires, Borx ghall proznptly give to
<br />L�nder 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 proof of loss if not rnade promptly by Bonrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar
<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, the
<br />insurance proceeds shall be applied to the sums secured by this Security Instnunent, whether or not then du�, with
<br />any excess paid to Borrower. If Barrower �l�andons the Froperty, or daes riof 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 />offered to settle a claim, then L,ender may collect tha insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Inshument, whether or not then due. The period of
<br />time for Borrower ta 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 o£ the payments referred to in the sections titled Payment of Princlpal an�d Intearest;
<br />Late Charges and Funds for Taxes and Insurance or change the amount of the payrnents. If under the section
<br />titled Acceleration; Remedies, the Property is acquired by Lender, Bonrower'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 Instrum;ent ic�amediately prior to the acquisition.
<br />6? 2004-2009 Compliance Systems, Inc. 002b-BPDI - 2009.12368
<br />Consumer Rcal Estate - Security lnstrumeht DL2036 Page 2 oF6 www.compliancesystems.cam
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