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<br />Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a gayment from Borrawer for a delinquent Periodic Payment which includes a sufficient amount to
<br />pay any late charge due, the payment may be applied to the�delinquent payment and the late charge. If more than one Periodic
<br />Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments i�
<br />and ta the extent that, each payment can be paid in full. To the extent that any excess eacists after the payment is applied to the
<br />full payment of one or more Periodic Payments, such excess ma.y be applied to any late charges due. Voluntary prepayments
<br />shall be applied first to any prepayment charges and then as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not
<br />extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the da.y Periadic Payments are due under the Note, until
<br />the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other
<br />items which can attain priority over this Security Instivment as a lien or encumbrance on the Properiy; (b) leasehold payments
<br />or ground rents an the Property, if any; (c) premiums for any and all insuzance required by Lender under Section 5; and (d)
<br />Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
<br />Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or
<br />at any tYme cluring the term of the Loan, Lender may require that Community Association Dues, Fees, a.nd Assessments, if any,
<br />be escrowed by Bonower, and such dues, fees and assessments shall be an Escrow Item. Borrower shaII promptly fiunish to
<br />Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless
<br />Lender waives Borrower's obligation to pay the Funds for any or a11 E,scrow Items. Lender may waive Borrower's obligation to
<br />pay to Lender Funds for any or all Bscrow Items at any time. Any such waiver may only be in writing. In the event of such
<br />waiver, Bonawer shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of
<br />Funds has been waived by Lender and, if Lender requires, shall fumish to Lender zeceipts evidencing such payment within
<br />such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all
<br />purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and
<br />agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower
<br />fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and
<br />Borrower shall then be obligated. under Section 9 to repay to Lender any such amoun� Lender may revoke the waiver as to any
<br />or aIl Escrow Items at any 9:ime by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay
<br />to Lender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the
<br />time spec�ed under RESPA, and (b} not to exceed the maximum amount a lender can require under RESPA.'Lender shall
<br />estimate the amount of Funds due on the basis of current data and reasonable estimates o£ exgenditures of future Escrow Items
<br />or otherwise in accordance with Applica.ble Law.
<br />The Funds shall be held in an institurion 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 Loan Bank. Lender shall
<br />apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for
<br />holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays
<br />Borrower interest on the Funds and Applicable Law permits Lender ta make such a chazge. Unless an agreement is made in
<br />writing or Applica.ble Law requires interest to be paid on the Funds, Lender shall not be requared to pay Borrower any interest
<br />or eamings on the Funds. Bonower and Lender can agree in writing, however, thaY interest shall be paid on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.
<br />I£ there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the
<br />excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender sha11
<br />norify Borrower as required by RESPA, and Bonower shall pay to Lender the amount necessary to make up the shortage in
<br />accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in. escrow, as defined
<br />under 1tESPA, Lender shall notify Bortower as required by RESPA, and Borrower shall pay to Lender the ambunt necessary to
<br />make up the deficiency in accordance with RESPA, but in na mose than 12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall prompfly refund to Boaower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Bonower shall pay all taxes, assessments, charges, fines, and imposirions attributable to the
<br />NEBI2ASTZA—Single Family—Fannie Mae/Freddfe Mac UNIFORM INS1'RUMENT
<br />ModiBed for VA
<br />� 338.2 Page 4 of 12 Form 3028 U01
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