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<br />�0110347G
<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 Appli�able Iaw permits Lender to make such a charge. However, Lender msy 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 />Applicabld Law provides otherwise. Unless an agreement is made or Applicable Law requires interest to be paid,
<br />Lender sh�ll not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may
<br />agree in ting, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge,
<br />an annual ', ccounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds �' made. The Funds are pledgqd as additional security for all sums secured by this Security Instrument.
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<br />If the Fun held by Lender exceed the aaiounts permitted to be held by Applicable Law, L�nder shall account to
<br />Bonower �or 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 Lende�'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 L,ender. If, under the section titled Acceleration; Remedies, Lender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Pzoperty, 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 />Appflcation of Payments. Unless Applicable Law provides othervvise, all payments received by Lender shall be
<br />applied: first, to any prepayment charges due uader 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. Borrower shall pay all taxes, assessments, charges, fines and impositions attnbutable to the
<br />Properiy vYhich may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower �hall pay these obligations in the manner provided in section titled Funds for Tazes and Insucance, 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, Bc�nower shall promptly fiu�nish to Lender receipts evidencing the payments.
<br />Borrower ll promptly discharge any lien wluch has priority over t.�is 5ecurity Instrument unless Borrower. (a)
<br />agrees in � 'ting to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)
<br />contests ' � good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the
<br />Lender's o inion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an
<br />agreement",satisfactory to I.ender subordinating the lien to this Security Inshument. If Lender determines that any
<br />part of thel Property is subject to a lien wluch 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. Bonower shall keep the improvements now existing or hereafter erected on the
<br />Property insured agai�nst loss by fire, hazazds incladed 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 periads that Len.der requires. The inc�rance 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 descn�ed 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 rigbt to hold the policies aad renewals. If Lender requires, Bonower ahall 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 insu�ance 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 t1�e Property damaged, if the restoration or repair is economically feasible and Lender's security is not
<br />lessened. �f the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />insurance ' roceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />any exces�paid to Borrower. If Borrower, abandons the Property, or does not answer within the number of days
<br />prescribed�l by Applicable Law as set fort'h in a notice from Lender to Bonower that the insurance carrier has
<br />offered to �Settle a claim, then I,ender 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 tben due. The period of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Boxrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments refened to in the sections titled Payment of Principal and Interest;
<br />Late Charges and Funds for Tazea and Insurance or change the amount of the payments. If under the section
<br />titled Acceleration; Remedies, the Properiy is acquired by Lender, Bonower's right to any insurance policies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured by this Security Instrument immediately prior to the acquisition.
<br />� 2004-2010 Compliavce Systems, Iac. EFAB-ICEB - 2010.03378
<br />Coaqumer Real E�tate - Secutity Iffitrument DL2036 Page 2 of 6 www.compliencesystems.com
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