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201103974
<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 J.oan 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 />---- tune 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. I,ender 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 Instiument.
<br />--- If the Funds held by Lender exceed the amounts pernutted 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 I,ender. If, under the section titled Acceleration; Remedies, L,ender shall acquire or sell the
<br />Property, Lender, prior to the acquisition or sale of the Properly, shall apply any Funds held by Lender at the tune
<br />of acquisition or sale as a credit against the sums secured by the Security Instrument.
<br />-- Application of Payments. Unless Applicable I.aw provides otherwise, a11 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 Tnstrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the inanner provided in section titled Funds for Taxes and Insurance, or
<br />if not paid in that manner, Bonower 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 />j , ; �,� Borrower shall promptly discharge any lien which has priority over this Security Inst.rument 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, L,ender 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 sha11 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 L,ender requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. T'he insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lende�'s approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, I.ender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Proteetion 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, Bonrower 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 I.ender'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 ttus 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 I.ender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Properiy or to pay sunns 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 />Unless Lender and Borrower otherwise agree 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 Ch$rges and Fnnds for Tazes 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 the extent of the
<br />swns secured by this Security Insirument immediately prior to the acquisirion.
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<br />c�J 2U04-2010 Compliance Systems, Inc. EEOB-771F - 2010.03.378
<br />Consumer Real E�tate - Sec:nrity Instmment DL2036 Page 2 of 6 www.complimcesystems.com
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