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2011�02�7
<br />any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to
<br />its rights to refuse such payment or partial payments rn the future, but Lender is not obligated to apply such payments at the
<br />time such payments are accepted. Ifeach Periodic Payment is applied as of its scheduled due date, then L,ender need notpay
<br />interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the L�an current.
<br />If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to
<br />I3orrower. Ifnot applied earlier, such fiands will be applied to the outstanding principal balance under the Note immediately
<br />prior to foreclosure. No oi�set or claim which Borrower might have now or in the tutare against Lender shall relieve
<br />Borrower frorn making payments due under the Note and this Securiry Instrument or performin� the covenants and
<br />agreements secured by this Security lnstrument.
<br />2. Application pf Payments or Proceeds. Except as otherwise described in this Section 2, all payments
<br />accepted and applied by L.ender shall be applied in the following order of priority: (a) interest due under fhe Note;
<br />(b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment
<br />in the order in which it became due. Any remaining amounts shall be applied tirst to late charges, second to any other
<br />amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
<br />If I.ender receives a payment from Borrower for a delinquent Periodic Payment which includes a sulTrcient amount
<br />ta pay any late charge due, the payment may be applied to the delinquent payment and the late char�e. [f more than one
<br />Periodic Payment is outstandin�, Lender rnay apply any payment received from Borrower to the repayment ofthe Periodic
<br />Payments if, and to the extent that, each payment can be paid in f'ull. To the extent that any excess exists after the payment is
<br />applied to the full payment of one or more Periodic Payments, such excess may be 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 applicatinn ofpayments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note
<br />shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for �scrow Items. Borrower shall pay to Lender on the day Periodic Paymentti are due under the Note,
<br />until the Note is paid in full, a sum (the "Funds") to provide for payment ofamounts due for: (a) taxes and assessments and
<br />other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) IeaSehold
<br />payments or ground rents on the Property, ifany; (c) premiums For any and all insurance required by Lender under Section 5;
<br />and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to I.ender in lieu ofthe payment nfMortga�;e
<br />Inaurance prcmiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination
<br />or at any tirne during the term of the L.oan, Lender may require that Community Association Dues, Fees, and Assessment�v, if
<br />any, be escrowed by Borrower, and such dues, fees and asse5sments shall be an Escrow Item. Borrower shall promptly
<br />furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay I.ender the Funds for Escrow Items
<br />unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for any or all Escrow Items at any Cime. Any such waiver may only be in writing. In 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 Lender requires, shall furnish to Lender receipts evidencing such
<br />payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide
<br />receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />"cavenant and agreement" is used in 5ection 9. lf Borrower is obligated to pay Escrow Items directly, pursuant to a waiver,
<br />and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such
<br />amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. I.ender may revoke the
<br />waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation,
<br />Borrower shall pay to I,ender all Funds, and in such amounts, that are then required under fhis Section 3.
<br />L,ender 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 exceed the maximum amount a lender can require under RESPA. Lender
<br />shall estimate the amount ofFunds due on the basis of current data and reasonable estimates ofexpenditures oFfuture Escrow
<br />Items or otherwise in accordance with �pplicable 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 an institution whose deposits are so insured) or in any Federal Home I.oan Bank. L.ender shall
<br />apply the Funds to pay the Escrow Items no later than the time specified under RESPA. L,ender shall not charge Borrower
<br />for holding and applyin� the Funds, annually analyzing the escrow account, or verifying the Escrow ltems, unless Lender
<br />pays Borrower interest on the Funds and Applicable Law pernlits L.ender to make such a charge. Unless an agrcement is
<br />made in writing or Applicable Law requires interest to be paid on the Funds, L,ender shall not be required to payBorrower
<br />any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Barrower for the
<br />excess funds in accordance with RESPA. Ifthere is a shortage ofFunds held in escrow, as defined under RESFA, Lender
<br />shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to makc up the
<br />shortage in accordance with R�SPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in
<br />escrow, as defined under RESPA, Lender shall notity Borrower as required by KESPA, and Bo►rower shall payto Lsnder the
<br />amount necessary to make up the deficiency in accardance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full ofall surns �ecured by this Security Instrument, Lender shall promptlyrefundto Borrowerany
<br />Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the
<br />Properiy which can attain priority over this Security Instrument, leasehald payments or ground rents on the Property, if any,
<br />and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower
<br />shall pay them in the manner provided in Section 3.
<br />Borrower shall promptly dischar�e any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obhgation secured by the lien in a manner acceptable to Lender, but only tio lon� a5
<br />Borrower is performing such agreement; (b) contests the lien in gaod faith by, or defends against enforcement of the lien in,
<br />legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are
<br />pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactoryto
<br />Lender subordinating the lien to this Security Instrument. If I.ender determines that any part of the Property is subject to a
<br />lien which can attain priority over this Secur�ty Instrnment, L,ender may give Borrower a notice ident�fymg the lien. Within
<br />10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth
<br />above in this Section 4.
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service
<br />used by Lender in connection with this Loan.
<br />S. Property Insurance. Borrower shall keep the irnprovements now existing or hereafter erected on the Property
<br />insured against loss by hre, hazards included within the term "extended coverage," and any other hazards including, but not
<br />limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br />(including deductible levels) and for the �eriods tl�at Lender requires. What Lender requires pursuant to the preceding
<br />sentencea can chan�;e during the term of the Loan. The insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender'S right to disapprove Borrower's choice, which right shall not be exercised unreasonably.
<br />Lender may require Borrower to pay, in connection with this I.oan, either: (a) a one-time char�e for flood zone
<br />determination, certification and tracking services; nr (b) a one-time charge for flood zone determination and certification
<br />services and subsequent charges each time remappings or similar chan�es occur which reasonably might affect such
<br />NE131tASKA--Single I'amily--Pannie Mae/Freddic Mac UNIFQRM INSTRUMF.NT (MERS) Form 3U2R 1/UI (page 3 ofS pages)
<br />12439.CV (1/OS) 904GOG Creative Thinking, Inc.
<br />CiOTO(00146281)
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