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�01103605 <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 aanount 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. Seation 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 tUe lesser amount. Lender may estimate the amount of Funds <br />due an the basis of current da.ta and reasona.ble estimaies 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 appl�ing 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 Iaw 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 ta Barrower, without charge, <br />an annual account{ng of the Funds, showing credits and debits to the F'unds 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 Tnstrument. <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 ofApplicable 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 neceasary 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 />Properiy, Lender, prior to the acquisition or sale of the 1'roperty, 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 xeceived by Lender shall be <br />applied: first, to any prepayment charges due undet the Note; second, to amounts payable under the section titled <br />Funds for Taxes and Insuranee; third, to interest due; fourkh, ta 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 />Properiy which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. <br />Bonrower sha11 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, Bonower shall promptly furnish to Lender receipts evidencing the payments. <br />Borxower shall promptly discharge any lien which hh�s 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 />Bonower 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 elcisting 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 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 receipis 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 restorarion 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 tlus 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 norice 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 Properiy 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. EHO&AEBD • 2010.03.378 <br />Coasumer Real Estete • Security Insuvment DL2036 Page 2 of 6 www.compliancesyatema.com <br />