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Borrower may cure such a de(ault and reinstate, as provided in paragraph 18, by causfng the action or proceeding to be
<br /> dismissed wRh a ruling that, in Lender's good faith determination, precludes (orfeiture of the Borrower's interest in the Property or �
<br /> � other material fmpairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in �
<br /> default if 8orrower, during the loan application process, gave materialiy false or lnacCUrate informetion or statements to Lender (or
<br /> . failed to provide Lender with eny material in(ormaHon) in connection wkh the loan evidenced by the Note, including, but not �
<br /> limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Securky �
<br /> Instrument is on a leasehold, Borrower shall comply with alt the provisions oi the lease. I( Borrower acquires fee title to the �'
<br /> Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. �i
<br /> 7. Protection of Lender's Rights in the Property. If BoROwer feils to perform the covenants and agreements �
<br /> contained in this Security Instrument, or there is e legal proceeding that mey significantly affect Lender's rights in the Property �
<br /> (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or reguletions), then Lender may N
<br /> do and pay (or whatever is necessary to protect the va�ue of the Property and Lender's rights in the Property. Lender's actions
<br /> may include paying any sums secured by a lien which has priority over this Securky Instrument, appearing in court, paying
<br /> reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take aCtion under this paragraph
<br /> 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under paragraph 7 shall become additional debt of BoROwer secured by this Securky
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest irom the date of
<br /> disbursement at the Note rate and shall be payable, with interest, upon notice nom Lender to Bonower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condftion of making the loan secured by this
<br /> Security Instrument, Borrower shali pay the premiums required to maintain the mortgage Msurance in etfect. If, for any reason, the
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrowe� shall pey the premiums required to
<br /> obtain coverage substantialiy equivalent to the mortgage insurance previously in eHect, at a cost substantially equivalent to the
<br /> cost to Borrower ot the mortgage insurance previously in e(Fect, from an alternate mortgage Insurer approved by Lender. I(
<br /> substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to
<br /> one-twelfth ot the yearly mortgage insurance premium being paid by Borrower when the insuranCe coverage lepsed or ceased to
<br /> be in eHect. Lender will accept, use and retain these payments es a �oss resenre in Ileu of mortgage insurance. Loss reserve
<br /> payments may no longer be required, at the option of Lender, if mortgage insuhance coverage (in the emount and for the period
<br /> that Lender requires) provided by an insurer approved by Lender again becomes �avalleble and is obtained. Borrower shell pay
<br /> the premiums required to maintafn mortgage insurance in eHect, or to provide a loss reserve, until the requirement tor mortgage
<br /> insurance ends in accordance with any written agreement between Borrower and Lender or appticable Igw.
<br /> 9. Inspection. Lender or its agent may make reasonable entrfes upon and inspections o( the Property. Lender shall give
<br /> Borrower notice at the time of or prior to an inspection specifying reasonable c�use for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, fn connection with any
<br /> condemnation or other taking of any part o( the Property, or for conveyance in Ueu of condemnation, are hereby assigned and
<br /> shall be paid to lender.
<br /> In the event ot a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br /> Instrument, whether or not the� due, with any excess paid to Borrower. in the event of a partial taking of the Property in which
<br /> the }air market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured
<br /> by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in wrking, the sums
<br /> secured by this Security instrument shali be reduced by the amount of the proceeds muRiplied by the following fraction: (a) the
<br /> total amount of the sums secured immediately before the taking, divided by (b) the fair market value ot the Property immediately
<br /> before the taking. Any balance shail be paid to•Borrower. In the event of a partlsl taking of the Property in which the fair market
<br /> value of the Property immediately before the taking is less than the amount of the sums secured immediately be(ore the taking,
<br /> 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 of(ers to make an
<br /> award or settle a claim for damages, Borrower fails to respond to Lender within 30 days atter the date the notice is given,
<br /> Lender is authorized to collect and apply the proceeds, at ks option,.either to restoration or rep8ir of the Property or to the
<br /> sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in wrking, any epplicetion o� proceeds to principal shall not extend or
<br /> postpone the due date ot the monthly payments reterred to in paragraphs i and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension o( the time for payment or
<br /> modi(ication of amortization of the sums secured by this Security Instrument granted by Lender to �ny successor in interest of
<br /> Borrower shall not operate to release the liability of the original Bonower or Borrower's successors in interest. Lender shali not
<br /> be required to commence proceedings against any successor in interest or refuse to extend Nme (or payment or otherwise
<br /> modify amortization o( the sums secured by this Security Instrument by reason of any demand made by the original Borrower or
<br /> Borrower's successors in interest. Any forbearance by lender in exercising any right or remedy shall not be a waiver of or
<br /> preclude the exercise ot any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. rne covenants and
<br /> agreements o( this Securky Instrument shali bind and benefit the successors and assigns of LAnder and Borrower, subject to the
<br /> provisions ot paragraph 17. Bonower's covenants and agreements shall be joint end several. Any Borrower who co-signs this
<br /> Security instrument but does not execute the Note: (a) is co-signing this Security Instrument oMy to mortgage, grent and convey
<br /> that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the
<br /> sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modity,
<br /> (orbear or make any accommodations wfth regard to the terms of,this Security Instrument or the Note without that Borrower's
<br /> consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loen
<br /> charges, and that law is tinaily interpreted so that the interest or other loan charges collected or to be collected in connection
<br /> with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce
<br /> the charge to the permftted ifmih and (b) any sums already collected from Bonower which exceeded permitted limits will be
<br /> refunded to Borrower. lender may choose to make this refund by reducing the principal owed under the Note or by making a
<br /> direct payment to Borrower. It a refund reduces principal, the reduction will be treated as e partial prepayment without any
<br /> prepayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shell be given by delivering it or by mailing it
<br /> by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address
<br /> or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to
<br /> Lender's address stated herein or any other address Lender designates by.notice to Borrower. Any notice provided for in this
<br /> Security Instrument shall be deemed to have been given to Borrower or Lender wh�h':giv�n as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall b9 goverhed by� federai law and the faw of the
<br /> jurisdiction in which the Property is located. In the event that any provision or Clause of this Security Instrument or the Note
<br /> conflicts with applicable law, such conflict shall not affect other provisions ot this Security Instrument or the Note which can be
<br /> given effect without the confNcting provision. Tp:this end the provisions of this Security instrument and the Note are declered to
<br /> be severable.
<br /> 16. Borrower's Copy. BoROwer shall be given one conformed copy of the Note and of this Securky Instrument.
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