|
�. Protection of Lender's Rights in the Property. ir sorrower �atis �o pertorm the covenancs and agreemencs
<br /> contatned h this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as
<br /> a proceeding h bankruptcy, probate, for condemnation or forfekure or to enforce laws or regulations), then Lender may do and pay for
<br /> whatever is necessary to protect the velue of the Property and l.ender's rights h the Property. Lenders actions may include payhg
<br /> arny sums secured by a lien which has priority over this Security Instrument, appearhg in court, paying reasonable attomey's fees and �
<br /> enterhg on the Property to meke repaks. Akhough Lender may take actbn under this paragraph 7, Lender does not have to do so.
<br /> My amounts disbursed by Lender under this paragraph 7 shall become addkional debt of Borrower secured by this Security �
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear hterest from the date of �
<br /> disbursement at the Note rate and shall be payable, wkh hterest, upon notice kom Lender to Borrower requesting peyment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the lofln secured by this Security}� .'
<br /> Instrument, BoROwer shafl pay the premiums requfred to maintah the mortgaqe hsurance in ef(ect. If, for any reason, the mortgage�
<br /> hsurance coverage required by Lender lepses or ceases to be h effect, Borrower shall pay the premiums required to obtain coverage�1
<br /> substantielly equivalent to the moRgage tnsurance previously in effect, at a cost substantialy equNalent to the cost to BoROwer of the�
<br /> mortgage insurance previousy in effect, from an aRemate mortgage insurer approved by Lender. If substantialy equivalent mortgage
<br /> insurance coverage is not available, BoROwer shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage �
<br /> hsurance premium being paid by BoROwer whe� the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and
<br /> retain these payments as a loss reserve fn lieu of mortgage insurance. Loss reserve payments may no longer be requked, at the
<br /> option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requfres) provided by an insurer
<br /> approved by Lender again becomes available and is obtained. BoROwer shall pay the premiums requked to maintain mortgege
<br /> insurance in effect, or to provide a bss reserve, untfl the requkement for mortpafle hsurance e�ds in accordance wfth any written
<br /> agreement between BoROwer and Lender or applicable law.
<br /> 9. Inspection. Le�der or its a�ent may make reasonable entrfes upon and hspecttons of the Property. Lender shall phre
<br /> Borrower notice at the tkne of or prbr to an hapectbn specMyhp reasonable cause for the hspectbn.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequentiel, in connectbn wRh any
<br /> condemnatbn or other takiny of any part of the Property, or for conveyance in tleu of condemnatbn, are hereby assipned and shaA 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 wh�h the fak market
<br /> value of the Property knmediatey before the taking is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immediatey before the taking, unless Borrower and Lender otherwise agree h wrking, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds multiplied by the folbwing frection: (a) the total amount of the sums
<br /> secured immedietely before the taking, divided by (b) the fair market value of the Property knmediately before the taking. My balance
<br /> shall be paid to BoROwer. In the event of a pertial takiny ot the Property h which the fak market vatue of the Property knmediatey
<br /> before the takhg is less than the amount of the sums secured knmedietely before the teking, unless Borrower and Lender otherwise
<br /> agree in writing or unless applicable lew 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 Borrower, or if, after notice by Lender to Borrower that the condemnor o(fers to make an award or
<br /> settie a claim for damages, Borrower fails to respond to Lender withh 30 days after the date the notice is given, Lender is authorized
<br /> •o coilect and appy the proceeds, at its optbn, either to restoration or repair of the Property or to the sums secured by this Securiry
<br /> Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in wrk�g, any applbation of proceeds to principal shall not extend or postpone the
<br /> due date of the monthy payments referred to in paragrsphs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released: Forbearance By Lender Not a Waiver. Extension ot cne tnne 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 ta release the liability of the originel Borrower or BoROwers successors in interest. Lender shatl not be required to
<br /> commence proceedings against any successor in interest or refuse to extend ttme tor payment or otherwise modify amortization of the
<br /> sums secured by this Security Instrument by reason oi any demand made by the originai BoROwer or Borrower's successors in
<br /> interest. Any forbea�ance by Lender in exercising any rpht or remedy shall not be a waiver of or preclude the exercise of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. Tne covenants and
<br /> agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, 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 /> Bonowers interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, fofiear or make any
<br /> accommodations with regard to terms of this Security 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 lew which sets maximum loan charges,
<br /> and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the ban
<br /> exceed the permitted limits, then; (a) any such loan charges shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit; and (b) any sums already collected (rom BoROwer which exceeded permitted limits will be refunded to Borrower. Lender
<br /> may choose to make this refund by reducing the principal owed under the Note or by making a direct peyment to Borrower. If a
<br /> refund reduces principal, the reduction will be treated as a partial prepayment wkhout any prepayment charge under the Note.
<br /> 14. NOtICeB. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by
<br /> first class mail unless applicable law 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 Lender's address
<br /> stated herein or any other address Lender designates by notice to BoROwer. 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 located. In the event that any provision or clause of this Security Instrument or the Note conflicts
<br /> W�th aPP�iceble law, such conflict shall not affect other provisions of this SecurRy Instrument or the Note which can be given effect
<br /> without the conflicting 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 ot the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneflcial Interest in Borrower. if an or any part of tne Property or any
<br /> interest in it is sold or transferred (or ff a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
<br /> without Lender's prior wrkten consent, lender may, at its option, require rcnmediate payment in fuli of all sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender 'rf exercise is prohibited by federal taw as of the date of this Securfty
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give BoROwer notice o( acceleration. The notice shall provide a period of not less
<br /> than 30 days from the date the notice is delivered or mailed within which the Borrower must pay atl sums secured by this Securky
<br /> Instrument. If BoROwer fails to pay these sums prior to the expiration of this period, Lender may invoke any r�nedies pertnitted by this
<br /> Security Instrument without turther notice or demand on Borrower. Form aoza e/eo
<br /> F102B.LM0 (10/97) Pags 3 of 5
<br />
|