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201009611
<br />any payment or partial payment insufficient to bring the I.oan current, without waiver of any rights hereunder or prejudice to
<br />its nghts to refuse such payment or partial pa�nnents in the future, but Lender is not o6ligated to apply such payments at the
<br />tirne such payments are accepted. If each Penodic Payment is applied as of its scheduled due date, then I.ender need not pay
<br />interest on unapplied funds. L,ender may hold such unapplied funds unUl Borrower makes payment to bring the Loan current.
<br />If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return thern to
<br />Borrower. If not applied earlier, such funds will be applied ta the nutstanding principal balance under thc Note immediately
<br />prior to foreclosure. No offset or clairn which Borrower might have now or in the future against I.ender shall relieve
<br />Borrower from making payments due under the Note and this Security Instrument or performing the covenants and
<br />agreernents secured by this Security Instrument.
<br />2. Applieation of Payments or Proceeds. Except as otherwise described in this Section 2, all payments
<br />accepted and applied by Lender shall be applied in the fallowing qrdcr of priority: (a) interest due under the Note;
<br />(b) principal due under the Note; (c) arnounts due under Section 3. Such payments shall be applied to each Periodic Payment
<br />in the arder in which it became due. Any remaining amaunts shall be applied first to late charges, second to any other
<br />amounts due under this Security Instrurnent, and then to reduce the principal balance of the Note.
<br />If L,ender reccives a payment from Borrower for a delinquent Penodic Payment which includes a suf6cient amount
<br />to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. IFmore than one
<br />Penodic Payment is outstanding, L.ender may apply any payment received fronn Borrower to the repayment af the Periodic
<br />Payments i� and to the extent that, each payment can be paid in full, To the extent that any exeess exists after the payment is
<br />apphed to the full payment of one or mare Penodic Payments, such excess may bc applied to any late charges due. Voluntary
<br />prepayments shall be applied first to any prepayment charges and then as described in the Note.
<br />Any application ofpayments, msurance proceeds, or Misccllaneous Proceeds ta principal due under the Npte
<br />shall nat �ctend or postpone the due date, or changc the amount, of the Periodic Payments.
<br />3. Funds for Eserow Items. Borrower shall pay to I.ender on the day Periadic Payments are due under the Note,
<br />until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and
<br />other items which can attain priority over this Security Instnunent as a lien or encumbrance on the Property; (b) leasehold
<br />payments or ground rents on the Prpperty, if any; (c) premiums for any and all insurance rec�uired by Lender under Section 5;
<br />and (d) Mortgage Insarance premiums, if any, or any surns payable by Borrower to L,ender ui lieu ofthe payment ofMortgage
<br />Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At arigination
<br />or at any tirne during the term of the Loan, I.ender may require that CommunityAssociation Dues, Fees, and Assessments, if
<br />any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall prpmptly
<br />fumish to L,ender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items
<br />unless Lender waives Borrower's obligation to pay the �'unds for any or all Escrow Items. Lender may waive Barrower's
<br />obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing Tn the
<br />event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which
<br />payment of Funds has been waived by Lender and, if I.ender requires, shall furnish to Lender receipts evidencing such
<br />payment within such time period as L.ender may require. Borrawer's abligation to make such payments and ta provide
<br />receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />"covenant and apreement" is used in Section 9. TfBorrower is obligated to pay �scraw Items directly, pursuant to a waiver,
<br />and Borrower fails to pay the amount due for an Escrow Item, Y.ender may exercise its rights under Sect�on 9 and pay such
<br />arnount and Borrower shall then be obligated under Section 9 to repay to I.ender any such amount. L.ender may revoke the
<br />waiver as to any or all Escrow Iterns at any time by a notice given in accardance with Section 15 and, upon such revocation,
<br />Borrower shall pay to Lender all Funds, and in such arnounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at
<br />the time specified under RESPA, and (b) not to excaed the maximum amount a lender can require under RESPA. I.ender
<br />shall estimate the amount oFFunds due on the basis of current data and reasonable estimates of expenditures of future Escrow
<br />Items or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an inst�tution whose deposits are insured by a federal agency, instrumentaliry, or entity
<br />(includingLender, ifLender is an institutionwhose deposits are so insured) or in any Federal Hame Loan Bank. I.ender sha�l
<br />apply the Funds to pay the Escrow Items no later than fhe time specified under RESPA. Lender shall not charge Borrower
<br />for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Ttems, unless Lender
<br />pays Borrower interest on the Funds and Ap�licable Law pernvts Lender to make such a charge. Unless an agreement is
<br />made in writing or Applicable Law requires mterest to be paid on the Funds, Lender shall not be required to pay Borrower
<br />any interest or earnings on the Funds. Barrower and Lender can agree in writing, however, that interest shall be paid on the
<br />Funds. J.ender shall givc to Borrower, without charge, an annual accounting ofthe Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the
<br />excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defineci under RESPA, L.ender
<br />shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary ta rnake up the
<br />shortage in accordance with RESFA, but in no rnore than 12 monthly�aymants. If there is a deficiency of Funds held in
<br />escrow, as defined under RESPA, I.ender shall notify $orrower as requ�red by RESPA, and Borrower shall pay to L.ender the
<br />amount necessary to make up the deficiency in accordance with RESPA, but in na more than 12 monthlypayments.
<br />Upon payment in full of all sums secured by this Security Instrurnent, Lender shall prompdy refund to Borrower any
<br />Funds held by Lender.
<br />4. Charges; I.iens. Sarrawer shall pay all taxes, assessments, charges, fines, and impositions athibutabla to the
<br />Property which can attain priqrity nver this Security Instrument, leasehald payments or ground rents on the Property, if any,
<br />and CnmmunityAssociation Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrawer
<br />shall pay them in the manner provided in Sectian 3.
<br />Barrower shall promptly dischar�e any lien which has priority over this Security Instiument unless Borrower; (a)
<br />agrees in writing to the payment of thc obh ation secured by the lien in a rnanner acceptabla to Lender, but only so long as
<br />Borrower is perforcning such agreement; (b� contests the lien in good faith by, or defends ayainst enforcement of the lien u�,
<br />legal proceedings which in Lender's opinion operate ta prevent the enfnrcement of the hen while those proceedings are
<br />pending, but only until such proceedings are concluded; or (c) secures fram the holder of the lien an agrceinent satisfictory to
<br />L.ender subordinating the lien to this Securit� Instrurnent. If Lender determines that any part af the Property is subject to a
<br />lien which can attain priority over this Secunty Instrument, L.ender may give Borrower a notice identifying the lien. Within
<br />10 days of the date on which that notice is given, Borrower shall satisfy the lien or take ane or rnore of the actions set forth
<br />above in this 3ection 4.
<br />Lender may require Borrower to pay a one-time charge For a real estate tax verification and/ar reporting service
<br />used by Lender in connection with this Loan.
<br />S. Prupe�-ty �nsurance. Barrawer shall keep the improvements now existing or hereafter erected pn the Praperty
<br />insured against loss by fire, hazards include�i within the term "extended coverage," and any other hazards including, but not
<br />limited to, earthquakes and flaods, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br />(including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding
<br />sentences can change during the term of the Laan. The insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender's right to disapprove Borrrower's choice, which right shall not be exercised unreasonably.
<br />I.ender may require Borrower to pay, in conn�ction with this Loan, either: (a) a one-time charge for flood zone
<br />determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification
<br />services and subsequent charges each time remappings or similar changes occur which reasonably might affect such
<br />NEBIZA,.SKA--Single Family--Fannie Mae/Freddie Mac LTNTFORM INSTRCIMENT
<br />12439.CV (1/08) 904043
<br />(MERS) Form 3018 UUl (page 3 of 8 pages)
<br />Creative Thinking, Inc.
<br />GOTO(00142529)
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