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<br /> Insurance, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items."
<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 under the federal Real _Estate
<br /> Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 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 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 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 /> If the Funds held by Lender exceed the an ounts permitted to be held by Applicable Law, Lender shall account to
<br /> Borrower for the excess Funds in accordance with the requirements of Applicable Law. If the amount of the Funds
<br /> held by Lender at any time is not sufficient to pay the Escrow 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 payments, at Lender's sole discretion.
<br /> Upon payment 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 section titled Acceleration; Remedies, Lender shall acquire or sell the
<br /> Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender 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 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, 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 priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br /> Borrower shall pay these obligations in the manner provided 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 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 /> 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 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, Lender may give
<br /> Borrower a notice identifying the lien. Borrower shall 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 Insurance. Borrower shall keep the, improvements now existing or hereafter erected on the
<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 /> amounts and for the periods that Lender requires. The 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 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, 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 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 Instrument, whether or not then due, with
<br /> any excess paid to Borrower. 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 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 set forth in the notice will begin when the notice is given.
<br /> © 2004-2010 Compliance Systems, Inc. EEOB-1440 - 2010.03.378
<br /> Consumer Real Estate - Security Instrument DL2036 Page 2 of 6 w .compfiancesystems.com
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