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<br />The Funds shail be held in an institution whose depc�sits are insured By a federal agency, unsOnzmentality,
<br />or entity (including I.ender, if Lender is an institution whose deposits are so insured} or in any �ederai Home
<br />Loan Bank. Lender shall apply the Funds to pay the �scrow Items no later than the tizne sgecified under KB3PA.
<br />Lender shaii not charge Borrowec for haldin� and applying the Funds, annually anatyzing the escrow accovnt, or
<br />verifying the Escrow Items, unless Lender pays Borrower interest an the Funds and App[icable Law percnits
<br />T.ender to make such a charge. Unless an a�reement is made in writino or Appticable I.aw requires inEerest to be
<br />paid on the Funds, Lender shalt not be reyuired to pay Bonower any interest or earnings on the Fnnds. Borrower
<br />and Lender can agree in wrEting, however, that interest shall be paid on tha Punds. Lender shail give to Borrower,
<br />without charge, an annual accounting of the Funds as required by RESPA.
<br />if there is a surplus of Fvnds held in escrow, as defined under RESPA, Lender shall account to Borrower
<br />for the exeess funds in accordanee with RESPA. If there is a shortage of Funds held in escrow, as defined under
<br />RESPA, Lender shall natify Barrower as required by RESPA, and Borrawer shall pay to Lender the amount
<br />necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. Ifthere
<br />is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by
<br />RESPA, and Borrower shall pay 2o J_.ender the amount necessary to make up the deficiency in accordance with
<br />RESPA, but in nt� more than 12 monthly payments.
<br />Upon payment in full of alI sums secured by this 5ecurity Instrument, Lender shall pramptly refund to
<br />Borrower any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
<br />attributable to the Properky which can attain prior�ty over this Securiiy Instrument, leasehold payments or a ound
<br />rents on the Property, tf any, and Community �ssociation Dues, Fees, and Assessments, if any. Ta the e�ctent that
<br />these items are Escrow Items, Borrower shali pay them in the manner provided 'zn Section 3.
<br />Bonower shall promptly cfischarge any lien which has prioriiy over this Security Instrun�nt unless
<br />Boxrower: (a) a in writin� to the payment of the obli�atian secured by the lien in a rrtanner acceptable to
<br />Lender, but only so lang as Borrower is performing such a��reement; {b) contests the Iien in good faith by, or
<br />defends against enFarcement of the lien in, le�a] praceedin;s which in Lender's opinion operate to prevent the
<br />enforcement of the lien while those proceedin;s are pen@ing, but only Until such proceedings are cancludad; or
<br />(c} secures from the haider of the 1 ien an agreement satisfactory to Lender subordinating the lien to this Security
<br />Instzvmen� If T.,ender determines that any part of the Property is subject to a lien which can attain priozity over
<br />this Security Insirument, Lender may �ive Borrower a notice identifying the lien. Within 10 days ofthe date on
<br />which that notice is given, Borrower shat t satisfy the 1 ien or take one or more of the actians set forth above in this
<br />Section 4.
<br />i.ender may reqaire Borrower to pay a one-tirne charge for a reai estate tax verification and/ar reporting
<br />service used by I,ender in connection with this Laan.
<br />S. Property Insurance. Bonower shail keep the improvements now existing or hereafter ere+cted � the
<br />Property insured against loss by fire, hazards includad within the tern� "extended coverage," and any other
<br />hazards including, btrt not limited to, earthquakes and fiootls, far which Lender requires insurance. T'his
<br />insurance shall be maintained in the amounts (inciuding deductible levels) and for the periods that Lender
<br />reqnires. What Lender reclaires pursuant to the preceding sentences can change durina the term ofthe Loan. T'he
<br />insuranee carrier providmg the insurance shat[ be chosen by Borrower subjact to Lender's right to disapprove
<br />Borrower's ehoice, which right shall not be exercised uareasonably. Lender may require Borrower to pay, in
<br />c�nnection with this I.oan, either: (a) a one-time charge for Sood aone determination, certi�cation and tracking
<br />services; or (b) a onatime charge for flood zone deterrnination and certificatian services and subsequent charges
<br />each tima remappmgs or similar changes occur which reasonably might affect such determinatio�t or certificatioa
<br />Bonrower shall aiso be responsible for the payment of any fees imposed by the Pederal Emergency Management
<br />A�ency in coanection with the review of any flaod zone determination resulting from an obJection by Borrower.
<br />, If Bortower fails to maintain any of the coverages descnbed above, Lender may obtain insurance
<br />caverage, at Lender's oprion and Borrower's expense. Lender is under no obtigation w purchase any paRictslar
<br />type or amaunt of covera�e. Therefore, such coverage shall cover Lender, but mi�ht or might not protect
<br />Borrawer, Borrower's equity in the Properry, or the conterrts of the Property, against any risk, hazard ar liabzlity
<br />ar�d might provide a eater or lesser covera;e than was previously in effect. $orrower aclrnowledges that the cost
<br />of the insurance coverage so obtained miaht significantty exceed the cost of insuzance that Borrower cautd have
<br />obtained, Any amounts disbarsed by Lender under this Seccion 5 sha1S become additional deirt of Borrower
<br />secured by this Secunity Insirument. These amounts shail bear interest at the Note rate fram the date of
<br />disbursement and sha11 be payable, with such interest, upon notice from Lender to Barrower requesting paymen�
<br />All insurance policies reqaired by T.ender and renewals of such polioies shatl be subjectto Lender's zight
<br />to disapprove such policies, shall inclUde a standard mart�a�e clause, and shall name I.ender as mortga;ee and/ar
<br />as an additional ioss payee_ Lender shaIl have the rightto hold the policies a�nd renewai certificates. Tf Lender
<br />requires, Borrower shal l promptly give ta Lender al t receipts of paid premiums and renewai notices. If Bonower
<br />obtains any form of 9nsurance coverage, not otherwise required by L,ender, for damage to, ar destruction of, tite
<br />Property, sach policy shalI include astandazd mort�age clause and shall name Lender as mork�a;ee and/or as an
<br />additionai loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance caxrier and Lender. Lender may
<br />make proof af loss if not made promptly by Bonower. Unless Lender �d Borrower otherwise agree in wri#irtg,
<br />any insurar�ce pro�eeds, whether or not the underlying insurance was required by I.ender, shall be applied to
<br />restoratian or repair of the Property, if the restoration orrepair is economically feasible and Lender's security is
<br />not lessened. During sueh repair and restoration period, I.endar shall have the right to hold such insurar�ce
<br />proceeds untiI Lender has had an opportunity to inspect sach Praperty to ensurethe work has been completed to
<br />Lender's saCisfaction, provided that such inspection sha11 be undertaken promptly. Lend�r may disburse proceeds
<br />for the t�epairs and restoration in a single payment or in a series of progress payments as the work is completed.
<br />Unless an agreement is mac3e in writ�n� or Applicable Law requires interest to be paid on such insurance
<br />proceeds, Lender shalt not be required #o pay Borrower any interest or earnin�s on such proceeds. Fees for public
<br />ad,�usters, or other third parties, retained by Borrower shall not be paid out ofthe insurance proceeds and sha11 be
<br />the sole obliDation of Borrower. Zf the restoration or repair is not economically feasible or Lender's security
<br />would be tessened, the iasurance proceeds shail be applied to the sums secured by this Security Instrument,
<br />whether or not then dae, +,vi�h the excess, if any, paid to Borrower. Such insurance proceeds shall be applied ia
<br />the order provided for in Section 2.
<br />Tf Borrawer abandons the Properry, Lender may �le, negotiate and settle any available insurance alaim
<br />and related matters. If Borrower does not respoad within 30 days to a notice from Lender that the insurance
<br />carrier has offered to settle a claim, then Lender may ne�otiate and settle the cla.im. The 30-day period will begin
<br />NEB12A5ICA—Single Family—Bannie MaeJFrcddic Mac UNIFORM INSTRUMEIV'C (METi5} Fnrrn 30281lO1 (page 4 af 4 pages)
<br />]2d39,CV (9/11) 430(?10250b CreaHvt Thinking, Inc.
<br />GOTO(003k183d)
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