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<br />Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a
<br />federally related mortgage loan may require for Borrower's escrow account utader the federal Real Estate
<br />Settlement Procedures Act of 1974 as amended from tztne to time, 12 U.S.C. Sectior► 2601 et seq. ("RESPA"),
<br />unless another Applicable Law that applies to the Funds sets a lesser amount. If so, Lender may, at any time,
<br />collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds
<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 federal agency, instrumentality, or entity
<br />(including Lender, iF Lender is such an institution) or in any Federal Hame Loan Bank. Lender shall apply the
<br />Funds to pay ttae Escrow Items, Lender may not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the �scrovv Items, unless Lender pays Borrower interest on the Funds
<br />and Applicable Law permits Lender Co make such a charge. However, Lender may require Borrower to pay a onc-
<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 ta be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on. the Funds. Borrnwer and Lender may
<br />agree in writing, however, that interest shall be paid on the Funds. Lender shall give to $orrower, 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 sacured by this Securiry Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by Applicable Law, �,ender shall account to
<br />Borrower for the excess Funds in accordance with th� requirements of Applicable Law. If the amount of the Funds
<br />held by Lender at any time is not. sufficient to pay the Escxow Items �vhen due, Lender mmy 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 che deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full af all suzns secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the section tided Acceleration; Remedies, L,ender shall acquire or sell the
<br />Property, Lender, prior to tkte acquisition or sale of the Property, shall apply any Funds held by Lendear at the time
<br />of acquisition or sale as a credit against the sums secured by the Security Instrument.
<br />Application of Payments. Unless Applicable Law provides otherwise, all payxnents 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 lata ck�arges due
<br />under the Note.
<br />Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Properry which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the mannet provided in section titled Funds for Taxes and Insuranee, 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 evidencing the payments.
<br />Borrower shall promptly discharge any 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 />cantests in �ood faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the
<br />Lender's opinian pperate to prevent the enforcement of the lien; or (c) secures from the holder 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 Property is subject to a lien which may attain priority over this Security Instrument, T,ender may give
<br />Borrower a notice identifying the lien. Borrower slaall 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 Insuranee. Borrower shall keep tk�e improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the te�rnra "extended coverage" and any other hazards,
<br />including £loods or flooding, for which Lender requires insurance. T"his insurance shall be maintained iri the
<br />amounts anti fr�rthe �Serio'ds thai Lender requires. The insurance carrier providing the insurance sha11 be chaseri by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described abave, Lender may, at Lender's option, obtain caverage to protect Lender's rights in the
<br />Property in accordance with sectipn titled Protection af Lender's Rights in the Property.
<br />All insut'ance policies and renewals shall be acceptable to Lender and shall include a standard znortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lende:r requires, $orrower shall promptly give to
<br />I,ender 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 $orrower.
<br />Uz►less Lender and Borrower otherwisa 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. 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 secured by this Security Tnstrument, whether or not then due, with
<br />any excess paid to Borrawer. If �orrower 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 chat the insurance carrier has
<br />offered to settle a clairn, then I,endear 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 Instrutnent, whether or not then due. The period nf
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />� 2004-2009 Compliance Systems, lnc. 002b-70C1 - 2009.12J68
<br />Conaumex Real Eatetc • Security �nstrument DL2036 Page 2 of 6 www.compliancesystems.com
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