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<br />The Funds shall be held in an institution whose depasits are insured by a federal agency, instruznentality, or entity
<br />(including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the
<br />�'unds to pay the Escrow Items. Lender tz�ay not charge Borrower for holdi�ng and applying the Funds, annually
<br />analyzing th� escrow account, or verifying the Escrow Itezns, 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 eharge for an independent real estate ta�c reporting service used by Lender in eonnection with this loan, unless
<br />Applicable Law provides otherwise. Unless an agreement is made nr Applicable Law requires interest ta be paid,
<br />Lender shall not be required ta pay Borrower any interest or eamings on the Funds. Borrower and Lender may
<br />agree in w�niting, however, that interest shall be paid on the Funds. Lender shall give to 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 Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to ba 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 th� Funds
<br />held by L�nder at any time is not suffzcient 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. Bo:rrower
<br />shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payrnent in full of all sums secured by this 5ecurity InsWment, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the section titled Acceleration; Remedies, Lender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale af 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 L,aw provides otherwise, all payments received by Lender shall be
<br />�"`-" ` -- applied: fiist, to any prepayment charges due under the Note; second, to amounts payable tuider the section 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; 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 payrnents or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for Taxes and Insurance, or
<br />if not paid in that manner, Bonrower shall pay them nn time directly to the person nwed payrnent. At the request of
<br />�.ender, 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 to the payment of the obligation secured by the lien in a manner acc�ptable to L�nder; (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 frozn the holder of the lien an
<br />agreern�nt satisfactory to Lender subordinating the lien to this Security Instniment. If Lender determines that any
<br />part of the Property is subject to a lien which may attain priority over this Security Tnstrument, Lender may give
<br />Borrower a notice identifying the lien. Bortower shall satisfy the lien or take one or more of the actions set forth
<br />above within 10 days of th� giving of notice.
<br />Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Properry insur�d 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 insurax�ce shall be zx�aintained in the
<br />aznounts and for the periods that Lender requires. The insurance carrier 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 option, obtain cov�rage to protect Lender's rights in the
<br />1'roperty in accordance with section titled Proteetion of Lender's Rights in the Praperty.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have th� right to hold the policies and renewals. If Lender requires, Borrower shall proxnptly give to
<br />T�ender all receipts of paid premiutns and renewal notices. In the event of loss, Borrower shall give prompt notice
<br />to the insurance carrier and Lender. Lender may makeproof of loss if not made promptly by Borrower.
<br />Unless Lender and $ortower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, if the restoration or repair is economically Feasible and Lender's security ia not
<br />lessened. Tf the restoration or repa'vr 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 Instrument, whether or not then due, with
<br />any excess paid to Borrower. If $orrower abaz�dons the Praperty, 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 />offered to settle a claim, then Lender may collect the insurance praceeds. Lender may use the proceeds to repair or
<br />restore the Properiy or to pay sums secured by this Security Instrument, whether or not then due. The period af
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lend�r and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments refen'ed to in the sectians titled Payrnent of Principal and Interest;
<br />Late Charges and Fands for Taxes and Insurance or change the amount of the payments. If under the saction
<br />titled Acceleratfon; Remedies, the Praperty is acquired by T..ender, Borrawer's right to any insurance palicies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of ttxe
<br />sums secured by this Security Instrument immediately prior to the acquisition.
<br />W 2004-2009 Compliance Systems, [nc. 002D-7FE1 - 2009.12.368
<br />Consumcr Real Estatc - Sccunty Instrument DL2036 Page 2 of 6 www.eomplianeesyetenns.com
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