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<br /> • 7. Protection o# Lender's Rights in the Prope�ty. If Borrower fails to perform the covenants and agreements containsd in
<br /> �,this Security Instrument, Ar there, is a legal proceeding that may significantly affect Lender's rights in the Property (suCh as 8 proCeedlnfl in
<br /> bankruptcy, probate, for condemnation or forteiture or to enforce laws or regulations), then Lender may do 8nd pay for whatever is necess8ry(� <�
<br /> to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by e lien�
<br /> which has,'priority otrer this Security Instrument, appearing in court, paying reasonable attorney's fees and entering on the Property to make �
<br /> repairs. ARhough Lender may take action under this paragraph 7, Lender does not have to do so. ,�
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. �
<br /> Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note �
<br /> rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. �
<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 required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance �
<br /> coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially M
<br /> equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance m
<br /> previously in effect, from an aRemate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not nO
<br /> available Borrower shall a to Lender each m n h m
<br /> , p y o t a su equal to one-iwelfth of the yearly mortgage insurance premium being paid by�b
<br /> Borcower when the insurance coverage Ispsed or ceased to be in effect. Lender wl� accept. use and retain these payments as a loss
<br />, reserve in lieu of mortgage insurance. Loss reserve payments may no longer be requ(red, at the pptbn of �
<br /> coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender aga��omes�ava. ` �M
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<br /> ��I� ,,
<br /> in . B r w
<br /> obta ed or o er h ii h
<br /> sa a te rmim r ir
<br /> e u s e u ed to m int in mo in r n
<br /> a a rtae suace in ff r
<br /> e ect o r vi
<br />, P Y p q g g , to p o de a loss reserve, until the
<br /> requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall live Borrower
<br /> notice at the time 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 consequential, 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 shall be paid
<br /> 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, whether or
<br /> not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in wh�h the fair market value of the Property
<br /> immediately before the taking is equal to or greater than the amount of the sums secured by this Securlty Instrument immediatey before the
<br /> taking, unless Borcower and Lender othervvise agree in wrking, the sums secured by this Security Instrument shall be reduced by the amount
<br /> of the proceeds multiplied by the following fraction: (a) the total amount the of sums secured immediately before the taking, divided by (b) the
<br /> fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the
<br /> Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediatety
<br /> before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be
<br /> applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle
<br /> a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and
<br /> apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether
<br /> or not then due.
<br /> Uniess Lender and Borrower otherwise agree in writing, any application of proceeds to principai shail not extend or postpone the due
<br /> date of the monthly 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 the time for payment or modification
<br /> of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate
<br /> to release the liabilky of the original Borrowar or BoROwer's suCCessors in in�erest. Lender shall not be requirecf to commenCe proceedings
<br /> against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security
<br /> Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in
<br /> exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements ot
<br /> this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph
<br /> 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not
<br /> execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant, and convey that Borrower's interest in the Property under
<br /> the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that
<br /> Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to terms of this Security
<br /> Instrument or the Note without that Borrower's consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that
<br /> law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the
<br /> permitted limits, then; (a) any such loan charges shall be reduced by the amount necessary to reduce the charge to the permitted limit; and
<br /> (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make
<br /> this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the
<br /> reduction will be treated as a partial prepayment without any prepayment charge under the Note.
<br /> 14. NOtIC@S. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first
<br /> class mail unless appl'�cable law requires use of another method. The notice shall be directed to the Property Address or any other address
<br /> Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any
<br /> other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been
<br /> given to Borrower or Lender when given as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in
<br /> which the Property is located. In the event ihat any provision or clause of this Security Instrument or the Note conflicts with applicable Iaw,
<br /> such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting
<br /> provision. To this end the provisions of this Security Instrument and the Note are declared to be severable.
<br /> 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. If ali or any part of the Property or any incerest in
<br /> it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's
<br /> prior written consent, Lender may, at its option, require immediate payment in full of ali sums secured by this Security Instrument. However,
<br /> this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30
<br /> days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security Instrument. If
<br /> Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument
<br /> without further notice or demand on Borrower.
<br /> Form 3028 9/BO
<br /> F4009.LM0 (10/98) Page 3 of 5
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