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201009633
<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 />The Funds shall be held in an institution whose deposits are insured by a federat agency, instrumentality, or entiry
<br />(including L.ender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender sha11 apply the
<br />Funds to pay the Escrow Items. I.ender xnay not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the �unds
<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 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 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 />I£ the Funds held by Lender exceed the amounts permitted to be held by Applicable Law, Lender shall account to
<br />Borrower far the excess Punds in accordance with the requirements of Applicable Law. �f the amount of the Funds
<br />held by Lender at any time is not sufficient to pay the Escrow Itez�is 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 de�cienoy. Borrower
<br />shall make up the deficiency in no more than twelve znozzthly payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Secixrity Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the section titled Acceleratlon; Remedies, Lender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Property, shall apply any �'unds held by Lender at the time
<br />of acquisition or sale as a credit against the sums secured by the Security Instruxnent.
<br />Application of Payments. Unless Applicable Law provides otherwise, all payments received by Lender shall be
<br />applied: first, to any prepayment charges due under the Nnte; second, to amounts payable under the section titled
<br />�'unds 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 prioriry over this 5ecurity Instrument, and leasehold payment,s or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Funds for Taxes and Insurance, ar
<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, Sorrower shall promptly furnish to Lender receipts evidencing the payrxaents.
<br />Borrpvver shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payament of the obligation secured by the lien in a maru�ter 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 en£orceznent of the lien; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this 5ecurity Instrument. If Lender deternunes that any
<br />part of the Froperty 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 lian or take one or more of the actions set forth
<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 �re, hazards included within the term "extended coverage" and any other hazards,
<br />including flaods or floading, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. The insurance carrier prpviding the insurance shall be chosen by
<br />Borrower subject to Lendar's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, I.,ender rnay, at Lender's aption, obtain coverage to protect Lender's rights in the
<br />Froperty 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 mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Barrower shall give prompt notice
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Bonrawer.
<br />__.
<br />-- L7nless Lender and otherwise agaree 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. 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 secui'ed by this Security Insttument, whether or not then due, with
<br />any excess paid to Bo�rz'ower. 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 to settle a claim, then I,ender 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 period of
<br />time 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 praceeds to principal shall not extend
<br />or postpone the due date af the payments referred to in the sections titled Payment of Principal and Interest;
<br />L$te Charges and Funds for Taxes and Insurance or change the amount of the payments. If under the section
<br />titled Acceleradon; Remedies, the Property is acquired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting from damage to the Properry prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured by this Security Instrumnent irnmediately prior to the acquisition.
<br />� 2004-2009 Compliance Systeme, Ine. 002D-498D - 2009.12.368
<br />Conaumer Real Estete - Seeurity Instrument� bL2036 Page 2 of 6 www.eomplianceayscems.com
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