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<br />due on the basis of current data and reasonable estizxaates of expenditures of future Escarow 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) ar in any Pederal Home Loan Bank. Lender shall apply the
<br />Funds to pay the Escrvw Items. Lender may not charge Barrower £or hnlding and applying the Funds, azu�ually
<br />analyzing the escrow account, or veri£ying 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 Lender in connection with t1:�is loan, unless
<br />Applicable Law p;rovides otherwise. Unless an agreement is made or Applicable Law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any iztterest or earnings on the Funds. Borrowez' and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Z.,ender shall give to Borrower, without charge,
<br />an annual accounting of the Funds, showing credits and debits to the Funds and tha purpase for which each debit to
<br />the Funds was made. The Funds are pledged as additional security for a11 sums sectu'ed by this Security Instrument.
<br />If the Punds held by Lender exceed the amounts permitted to be held by Applicable Law, Lender shall account to
<br />Borrower £or the excess Funds in accordance with the requirements of Applicable Law. If the arttount of the �'unds
<br />held by Lender at any time is not suffioient to pay the Escrow Items when due, I,ender 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 Lender'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 Lendar._ If, under the section titled Accelerat�on; Rernedies, Lender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Property, sha11 apply any Punds held by Lender at the time
<br />of acquisition or sale as a credit against the sums securad by the 5ecurity Instrumertt.
<br />Application of Payments. Unl�ss Applicable Law provides otherwise, all payrnents received 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 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 payments or ground rents, if any.
<br />Borrower shall pay these obligations ian the naaz�txer provided in sectinn titled Funds for Taxes and Insurance, or
<br />if not paid in that mannar, Borrower shall pay them on time directly to the person owcd payment. At the request of
<br />Lender, $orrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge a�y 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 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 opinian operate to prevent the enforcement of the lien; or (c) secures fronr� the k►alder 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 Praperty is subject to a lien which may attain priority over this Security Instrument, L,ender may give
<br />Borrower a notice identifying the lien. Borrowar 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 />Hazard or Property Tnsurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included withixi the term "extended coverage" and any other hazards,
<br />including floods ar flooding, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. The insurance carrier providing the insuz'ance shall be chosen by
<br />Bonrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, L,ender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Protection of Lender's R.ights in the Property.
<br />All insurance policies and renewals shall be acceptahle to Lender and shall inchide a standar.d mortgage cl�use.
<br />Lender shall have the right to hold the policies and renewals. If Leander requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewa] notices. In the event of loss, $orrower shall give prompt notice
<br />to the insurance carrier and L.ender. Lender may make proof of loss if not xnade promptly by Borrower.
<br />Unless Lender and Bonrower 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 is not
<br />lessened. Tf the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />insurance proceeds shall be applied to the sut»s secured by this Security Instrument, whether or not then due, with
<br />any excess paid to Bprrower. 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 from Lender to Borrower that the insurance carrier has
<br />offered tn settle a claim, then I,ender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property ot to pay surns secured by this Security Instrument, whether or not then due. The period of
<br />titne for Borrower to 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 nat extend
<br />or postpone the due date of the payments referred to in the sections titled Payment of Principal and Interest;
<br />Late Charges and Fun.ds far Taxes and Insuranee or 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 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 5ecurity Instrument iznmediately prior to the acquisition.
<br />� 2004-2009 Compliance Systems, Inc. 002b-bSC.b - 2009.I2368
<br />Consurocr Real (>slate - Securiry Instrument DL2036 Page 2 of 6 www.compliancesystems.¢om
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