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<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 />'T'he Funds shall be held in an institution whase deposits are insured by a federal agency, instrumentality, or entity
<br />(including Lender, if Lender is such an institution) or in any Federal Home I.oan Bank. Lender sha11 apply the
<br />Funds to pay the Escrow Items. L,ender may not charge Borrower far holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless L.ender 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 />tune 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 I,aw requires interest to be paid,
<br />Lender shall not be required to pay Sorrower 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 ta Borrower, without charge,
<br />an annual accounting of the Funds, showing 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 sums secured by this Security Instnunent.
<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 Punds in accordance with the requirements of Applicable Law. If the amount of the Funds
<br />held by Lender at any time is not suffici�nt.to pay the Escrow Items wh�n due Lender ma}� so notify Sozrower in
<br />writing, and, in such case $orrower shall pay to Lender the arnnunt necessary to make up the deficiency. Borrower
<br />shall make up the deficiency in no more than twelve monthly payments, at I.ender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instniment, Lender sh.all promptly refund tn Borrower
<br />any Funds held by Lender. If, under the section titled Acceleratfon; Remedies, Lender sha11 acquire or sell the
<br />__ ..
<br />Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time
<br />o� acquisition or saie as a ciedit aga'rr�st th�snrns sccnred �y tl:e See�arty In�r�arnenx. .
<br />Appllcatian 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 amnunts payable under the section titled
<br />Funds for Taxes and Insurance; third, to interest due; fourth, to principal due; and last, to axry late charges due
<br />under the Note.
<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, �nes and impositions attributable to the
<br />Property which may attain prionity over this Security Instnunent, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligatians in the manner provided in section titled k'unds 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 Lender 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 ta the payment of the obligation secured by the lien in a rnanner 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 enforcement o£ 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 to a lien which may attain priority aver this Security Instrurt�ent, Lender may give
<br />Bortower � notice identifytng the lien. Borrawer s�rall satisfy the lien or �ake one ar more of the actiori5 set for�th
<br />above within 10 days of the giving of notice.
<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 other hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts and fpr the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by
<br />Borrovt+er 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 covera$e to protect Lender's rights in th.e
<br />Property in accordance with section titled Protectlon 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, Borrower shall protnptly give to
<br />__.. ��tt�C�eipta ofgaxd�remicu��treneova�°rtotic� �n the evcrrtrofios�-�rv�ver giwe pren3pt notice
<br />to the insurance carnier and L�nder. Lendex may make proof of loss if not nnade prornptly by Borrower.
<br />Unless I.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, if the restoration or repair is econamically 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 sutns secured by this Security Instrument, whether or not then due, with
<br />an}c. exaess gaid to.Borrower_If Borrower abandons the Property, or does not answer within the number of days
<br />-' prescribed l�y Applicab7e I:aw as set fortTi in a notice f'rain �ender to` Borro`wer that the insurance cart'ier has -
<br />offer�d to settle a claim, then Lender may collect the 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 periad of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless �...ender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments referred to in the sections titled Payment of Prineipal and Interest;
<br />Late Charges and Funds for Taxes and Insurance ar 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 pnlicies 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 Instrument nnmediately prior to the acquisition.
<br />� 2004-2009 Complimice Syetems, Ine. 002P-992d - 2009.12.366 p e 2 of 6 www.compliancesysfome.com
<br />Consumer Real Es[a[e - Security Inetrumen[ DL2036 a8
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