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201103345
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumeatality, or entity
<br />(including Lender, if Lender is such an institution) or in any Federal Homa Loan Bauk Lender shall apply the
<br />Funds to pay the Bscrow 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 Bonower interest oa the Funds
<br />and Applicable Iaw permits Lender to make such a charge. However, Lender may require Bonower 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 />I,ender 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 Bozrower, without charge,
<br />an annual accounting of the Funds, showing credits and debits to the Funds and the ptupose for which each debit to
<br />the Funds was made. The Funds are pledged as additional securiry for all sums secured by this Security Instrament.
<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 Funds in accordance with the requirements of Applicable I,aw. 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. Bonower
<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, I.ender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under the section tifled Accelerai3on; Remedies, Lender shall acquire or sell tlie
<br />Property, Lender, priar 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 />ApplicaHon of P�yments. Unless Applicable Law provides othervvise, 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 Tazes and Insurance; third, to interest due; fourth, to principal due; and last, to any late charges due
<br />under the Note.
<br />Charges; Liens. Bonrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over t1�is Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in section titled Fnnds for Tazes and Insurance, or
<br />if not paid in that manner, Boaower shall pay them on rime directly to the person owed paymen� At the request of
<br />Lender, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien wluch has priority over this Security Instrument unless Bonower: (a)
<br />agrees in writing to the payment of the obligation sectued 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 �aforcement of the lien; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrumen� 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, hazazds 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 pmviding the insurance shall be chosen by
<br />Bonower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage descn'bed above, Lender may, at Lender's option, obtain coverage to protect Lendet's rights in the
<br />Property in accordance with section titled Protecl3on of Lender's Rights ln the Property.
<br />AIl insurance policies and renewals shall be accegtable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Bonower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Bonower shall give prompt notice
<br />to the ina�,�ce cazrier and Lender. Lender ma.y 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 Bonower. If Bonower 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 Bonower 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 Bonower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Boxrower otherwise agee 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 for Tages and Insurance or change the amount of the payments. If under the section
<br />titled Acceleration; Remedies, the Property is acquired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to tke extent of the
<br />sums secured by this Security Inshument immediately prior to the acquisition.
<br />� 2004-2010 Comptience Systema, Inc. EEO&A6HF - 2010.03378
<br />Conaumer Resl Estate - Secucity Inatrument DL2036 Pege 2 of 6 vvp�w,¢umpliance,yystems,cpm
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