420 LAUREL DR 2018-01-02 MF Import

200304210985.004 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow items, Prepayment Charges, and Late Charges. Borrower shall pay when duc the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Leader unpaid, Leader may require that any or al: subsequent payments due under the Note and this Security Imtrvmeut be made in one or more of life following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check- is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in die Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender nay accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments arc accepted. If each Periodic Payment is applied as of its scheduled due dale, then Lender need not pay interest on mntpplied funds. Lender nay hold such mhapplied funds until Borrower makes payment to bring the Loan current. if Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to tie outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in die future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing tie cove:aants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under tie Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, die payment may be applied to tie delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to die extent that, each payment can be paid in full. To die extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under die Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow items. Borrower shall pay to Lender on die day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) axes and assessments and other itenis which can attain priority over this Security Instrument as a lien or encumbrance on die Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with die provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that/ Community Q-aiWAI 10012) Pape 4 of 15 Farm 3048 1l01 0