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7. Protection of Lender's Rights in the Property. it eorrower taiis to pertorm cne covenants and agreements
<br /> contained in this Security Instrument, or there is a legal proceeding that may sign'rficanty affect Lend�s rights in the Property (such as
<br /> a proceed'mg in bankruptcy, probate, for condemnation or torteiture or to enforce laws or regulations), then Lender may do and pay for
<br /> whatever is necessary to protect the value of the Property and Lender's riphts in the Property. Lender's actions may include paying
<br /> any sums secured by a lien which has prioriry over this Security Instrument, appearing in court, paying reasonable attomey's fees and �
<br /> entering on the Property to make repairs. Akhough Lender may take action under this paragraph 7, Lender does �ot have to do so. '
<br /> My amounts disbursed by Lender under this paragraph 7 shaii become addkional debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shali bear hterest from the date of:•
<br /> disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borcower requesting payment. �i
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security �`
<br /> Instrument, Borrower shall pay the premiums requked to mahtain the mortgage hsurance in effect. if, for any reason, the mortgage �i
<br /> �surance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums Fequired to obtain coverage �
<br /> substantialy equivalent to the mortgage �surance previousy in effect, at a cost substantialy equivalent to the cost to BoROwer of the �
<br /> mortgage insurance previousy in effect, from an aRemate mortgage insurer approved by Lender. If substantially equfvalent mortgage �
<br /> insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yeary mortgage
<br /> insurance premium being paid by Borrower when the fnsurance coverage lapsed or ceased to be in effect. Lender will accept, use and
<br /> retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the
<br /> option of Lender, 'rf mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer
<br /> approved by Lender again becomes available and is obtahed. Borrower shall pay the premiums required to maintain mortgage
<br /> insurance in effect, or to provide a bss reserve, until the requirement for mortgage insurance ends in accordance wkh any written
<br /> agreement between Bonower and Lender or applicable law.
<br /> 9. Inspection. Lender or ks agent may make reasonable entries upon and inspections of the Prop�ty. Lender shall give
<br /> Borrower notice at the tirne of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequentiel, in connection with any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shalt be
<br /> paid to Lender.
<br /> In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument,
<br /> whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market
<br /> value of the Property immediatey before the takhg is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immedietely before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds multiplted by the folbwinfl fraction: (a) the total amount of the sums
<br /> secured immediatey before the taking, divided by (b) the fair market value of the Property immediately before the taking. My balance
<br /> shall be paid to BoROwer. In the event of a partial taking of the Property in which the fair market value of the Property immediately
<br /> before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise
<br /> agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security
<br /> Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borcower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized
<br /> to collect and apply the proceeds, at its option, either to restoration or repaK of the Property or to the sums secured by this Security
<br /> Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthy payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released: Forbearance By Lender Not a Waiver. Extension of tne c�me tor payment or
<br /> mod'rfication of amortization of the sums secured by this Security instrument granted by Lender to any successor in interest of Borrower
<br /> shall not operate to release the liability of the origk�al Borrower or Borrowers successors in interest. Lender shall not be requked to
<br /> commence proceedings against any successor in interest or refuse to extend time for payment or othervvise modify amortization of the
<br /> sums secured by this Security Instrument by reason of any demand made by the oripinal Borrower or Borrower's successors in
<br /> interest. Any forbearance by Lender in exercising any right or remedy shail not be a waiver of or preclude the exercise of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Severai Liability; Co-signers. Tne co�enants and
<br /> agreements of this Security Instrument shall b�d and benefit the successors and assigns of Lender and Bo►rower, subject to the
<br /> provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant, and convey that
<br /> BoROwers interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured
<br /> by this Securiry Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any
<br /> accommodations with regard to terms of this Security Instrument or the Note without that Borrowers consent.
<br /> 13. Loan Charges. If the ban secured by this Security Instrument is subject to a law which sets maximum loan charges,
<br /> and that law is finaly interpreted so that the int�est or other loan charges collected or to be collected in connection with the ban
<br /> exceed the permkted limks, then; (a) any such ban charges shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit; and (b) any sums already collected from Bonower which exceeded permitted limks will be refunded to BoROwer. Lender
<br /> may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a
<br /> refund reduces principal, the reduction will be treated as a partial prepayment wkhout any pr�ayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering ft or by mailing ft by
<br /> first class mail unless applicable taw requKes use of another method. The notice shall be directed to the Property Address or any
<br /> other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lende�'s address
<br /> stated herein or any other address Lender designates by notice to Borrower. My notice provided for in this Security Instrument shall
<br /> be deemed to have been given to Borrower or Lender when given as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall be govemed by federal law and the law of the
<br /> jurisdiction in which the Property is bcated. In the event that any provision or clause of this Securiry Instrum�t or the Note conNicts
<br /> wkh applicable law, such conflict shall not affect other provisions of this Security �nstrum�t or the Note which can be given effect
<br /> without the conflfcting provision. To this end the provisbns of this Security Instrument and the Note are declared to be severable.
<br /> 16. Borrower's Copy. BoROwer shaH be ghren one conformed copy of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficiai Interest in Borrower. If all or any part of the Property or any
<br /> interest in k is sold or transferred (or M a beneffcial hterest in Borrower is sold or trens�d and Borrower is not e natural person)
<br /> without Lender's prior written consent, Lender may, at ks option, require Immediate payment in full of all sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender if exercise is proh�ited by tederel law as of the date of this Security
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period ot not less
<br /> than 30 days from the date the notice is delivered or mailed withk� which the Borrower must pay all sums secured by this Security
<br /> Instrument. If Bonower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this
<br /> Security Instrument wkhout further notice or demand on Borrower. Form 3028 B/90
<br /> F/029.LM0(10/B7) Pape 3 of 5
<br /> 575
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