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20110401�
<br />Payments are deemed received by Lender when received at the location designated in the Note or at such other
<br />�cation as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may retum
<br />ny payment or partial payment if the payment or partial payments are insufficient to bring the Loan cunent. Lender
<br />nay accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights
<br />�ereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
<br />�bligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of
<br />ts scheduled due date, then I,ender need not pay interest on unapplied funds. Lender may hold such unapplied funds
<br />�nti1 Bonower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of
<br />ime, Lender sha11 either apply such funds or return them to Borrower. If not applied earlier, such funds will be
<br />pplied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim
<br />vhich Borrower might have now or in the future against Lender shall relieve Borrower from making payments due
<br />mder the Note and this Security Insmiment or performing the covenants and agreements secured by this Security
<br />nstrument.
<br />2. Application of Payments or Procceds. Except as otherwise described in this Section 2, all payments
<br />ccepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note;
<br />b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic
<br />'ayment in the order in which it became due. Any remaining amounts sha11 be applied first to late chazges, second
<br />� any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
<br />mount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If
<br />nore than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the
<br />epayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that
<br />ny excess exists aftet the payment is applied to the full payment of one or more Periodic Payments, such excess may
<br />�e applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then
<br />s described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proce,eds to principal due under the Note
<br />hall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Bonower shall pay to Lender on the day Periodic Payments are due under the
<br />dote, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and
<br />ssessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the
<br />'roperty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and a11 insurance
<br />equired by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower
<br />� Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10.
<br />'hese items are called "Escrow Items. " At origination or at any time during the term of the Loan, Lender may require
<br />zat Comtnunity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and
<br />ssessments sha11 be an Escrow Item. Borrower sha11 promptly furnish to Lender a11 notices of amounts to be paid
<br />nder this Section. Bonower sha11 pay Lender the Funds for Escrow Items unless Lender waives Bortower's
<br />�bligation to pay the Funds for any or all Escrow Items. Lender may waive Bonower's obligation to pay to Lender
<br />�unds for any or a11 Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver,
<br />�onower sha11 pay directly, when and where payable, the amounts due for any Escrow Items for which payment of
<br />�unds has been waived by Lender and, if I.ender requires, shall furnish to Lender receipts evidencing such payment
<br />rithin such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts
<br />ha11 for a11 purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />covenant and agreement" is used in Section 9. If Bonower is obligated to pay Escrow Items directly, pursuant to
<br />waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its, rights under Section
<br />� and pay such amount and Bonower sha11 then be obligated under Section 9 to repay to Lender any such amount.
<br />.ender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section
<br />5 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such atnounts, that are then required
<br />�der 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
<br />t the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA.
<br />�nder sha11 estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures
<br />�f future Escrow Items or otherwise in accordance with Applicable Law.
<br />The Funds sha11 be held in an institution whose deposits aze insured by a federal agency, instrumentality, or
<br />ntity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan
<br />tank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. L,ender
<br />ha11 not charge Bonower for holding and applying the Funds, annually analyzing the escrow account, or verifying
<br />'ae Escrow Items, unless Lender pays Bonower interest on the Funds and Applicable Law pemuts Lender to make
<br />uch a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,
<br />,ender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree
<br />n writing, however, that interest shall be paid on the Funds. Lender shall give to Bonower, without charge, an
<br />nnual accounting of the Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for
<br />'ne excess funds in accordance with RE5PA. If there is a shortage of Funds held in escrow, as defined under RESPA,
<br />,ender shall notify Bonower as required by RESPA, and Bonower sha11 pay to Lender the amount necessary ta make
<br />p the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of
<br />�unds held in escrow, as defined under RESPA, Lender sha11 notify Borrower as required by RESPA, and Bonower
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<br />ASKA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Dachlag/c �
<br />3028 1/01 Page 3 of 11 www,docmaglc.com
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