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201100010
<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) or in any Federal Home Loan Bank. Lender shall apply the
<br />Funds to pay the Escrow Items. Lender may 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 Funds
<br />and Applicable Law p�rmits Lettder to make such a charge. However, Lender may require $orrower to pay a nne-
<br />time charge for an independent real estate tax reporting service used by L,ender in connectzon 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 intcrest 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 Securiry Instrument.
<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 �'unds in accordance with the requirements of Applicable Law. If the amount of the Funds
<br />held by Lender at any tizn,e is not sufficient to pay the �scrow 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. Borrower
<br />shall make up the deficiency in no more than twelve monthly payrnettts, at L,ettder's sole discretion.
<br />Upon payz�aent in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the sectipn titled Acceleration; 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 />af acquisition or sale as a credit against the sums secured by the Security Instrument.
<br />Applieation 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 amounts payable under the section titled
<br />Funds for Taxes and Insurance; third, to interest due; fourth, to principal due; and last, ta 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 />Barz�ower sk�all pay these obligations in the manner pravided in section titled Funds 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 evidenciz�g the payments.
<br />Bnnrower shall promptly discharge any lien which has priority ovar this Secw'ity 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 opinion operate to prevent the enforcement of the lien; or (c) secures from the h,older of the lien an
<br />agreement satisfactory to Lender subarditaating the lien tn this Security Instrument. If Lender det�rmines that any
<br />part oF the Praperty 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 lien ar take nne 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 erectad on th�
<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 />amaunts and for the periods that Lender requires. `I'he 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 maintain
<br />coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Protection af Lender's Rights in the Property.
<br />Al� insurance policies arxi ren�wzls shall be a�ceptable to Lender and shall include a standard mot 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, Borrower shall give prompt notice
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wx'itin�, insurance praceeds 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 shal] be applied to the sums secured by this Security Inst�rument, whether or not then due, with
<br />any excess paid to Borrower. Tf Borrower abandons the Property, nr does not answer within the number of days
<br />prescribed by Applicable Law as set forth in a notice from Lender to Bor:tower that the insurance carrier has
<br />offered 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 period of
<br />time for Borrower to answer as sat forth in the notice will begin when the nptice is given.
<br />Unless I,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 Principal and Interest;
<br />Late Charges and Funds fnr Taxes and Insurance or change the amount of the payx�aents. If under the section
<br />titled Acceleration; Remedies, the Property is acquired by �,ender, Borrow�r'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 Security Instrument immediately prior to the acquisition.
<br />ecA 2004-2009 Compliance Systems, Inc. 002D-948F - 2009.12.368
<br />Consumer Real Estate - Security [natmmcnt DL2036 Pdge 2 of 6 www.eompliancesyslems.com
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