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substantiully eyuivalen[ mortgage insurance coverage is not auailable, Borrower shall pay tc, Lender each month a sum equal to
<br /> one-twelfth of the yearly ►nortgage insurance premium being paid by Borrower when the insurance coverage lapsed ar ceased to
<br /> be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve�
<br /> � payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period�
<br /> that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay �
<br /> the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage�
<br /> 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 entrics upon and inspections of the Property. Lender shall give�
<br /> Borrower 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 an
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned an
<br /> shall be paid to Lender.
<br /> In the event of a rotal 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
<br /> market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this
<br /> Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by
<br /> this Security Instrument shall be reduced by the amount of the proceeds multiplied hy the following fraction: (a) the total
<br /> amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately
<br /> before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair .
<br /> market value of the Property immediately before the taking is less than the amount of the swns secured immediately before the
<br /> taking, unless Borrower and Lender otherwise.agree in writing or unless applicable law otherwise provides, the proceeds shall
<br /> be applied to the su►ns 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 c�ndemnor oflers 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 its option, either tcY restoration or repair of the Property or to the sums
<br /> secured by this Security 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
<br /> postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released; Forbearance Ry Lender Not a Waiver. Extension of thc time for payment or modification
<br /> of amortization of the sums secured by this Security Instrument granted by Lender ro any successor in interest of Borrower shall
<br /> not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required t��
<br /> commence proceedings against any successor in interest or rePuse to extend time for payment or otherwise modify amortization
<br /> of the sums secured by this Security Instrumen[ by reason c�f' any demand made by the original Borrciwer or Borrc�wer's
<br /> successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the
<br /> exercise of any righ[ or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this
<br /> Securit�� Instrwnent shall bind and benefit the successors and assigns of Lender and Bo►-rower, subject to the provisiuns of
<br /> paragraph l7. Borrower's covenan[s and agreements shall be joint and several. Any Borrower who co-signs this Security
<br /> 'nstrument but does not execute the Note: (a) is co-signing this Security Instrument only to rnortgage, gr��nt and convey that
<br /> Borrower's interest in the Property under the tenns of this Security Iiistrument; (b) is not personally obli�ated to pay the sums
<br /> secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, f��rbear or
<br /> make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent.
<br /> 13. Loan Charges. If the loan secured by this Security [nstrument is subject to a law 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
<br /> loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge
<br /> to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be ref�unded to
<br /> Borrower. Lender may choose to make this refund by reducing the pcincipal owed under the Note or by making a direct
<br /> payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any
<br /> prepayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing
<br /> it by first class mail unless applicab(e 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 Lcnder shall be given by first class mail tc�
<br /> Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice providcd f�>r in this �
<br /> Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph.
<br /> 15. Go��erning La«•; Severability. This Security Instrument shall be governed by federal law and thc 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
<br /> conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrumeut or the N�te which can be
<br /> given effect without the contlicting provision. To this end the provisions of this Security Instrument and the Note are declared
<br /> to be severable.
<br /> 16. Borrower's Cop�°. Borrower shall be given one conformed copy of the Note and of this Security InsU-ument.
<br /> 17. Transfer of the Propert�� or a Beneficial Lrterest in Borrower. If all or any part of the Property or any interest in it
<br /> is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) withvut
<br /> Lender's prior written consent, Lender may, at its option, require immecliate nayment in full of all sums �ecured by this
<br /> Security� Instrument. However, this option shall not be exercised by Lender if exercise iti prohibited by federal law as c�f the date
<br /> 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
<br /> :ess than 30 days from the date the notice is delivered or mailed w�thin which Borrower must pay all sums secured by this
<br /> Security Instrument. Ir Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies
<br /> permitted by this Security Instrument without further notice or demand on Borrower.
<br /> 18. Borrower's Right to Rei��state. If Borrower meets certain conditions, Borrower shall have the right to have
<br /> enforcement of this Security Instrument discontinued at any time prior tu the earlier of: (a) 5 days (or such other period as
<br /> applieable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this
<br /> Security Instrument: or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that F3orrower: (a) pays
<br /> Lender all sums which then would be due under this Security Instrument and the Note as iF no acceleration had occurred; (b)
<br /> cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument,
<br /> including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reas<�nably require to assure
<br /> that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums securcd by
<br /> this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the
<br /> obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right ro reinstate shall
<br /> not apply in the case of acceleration under paragraph 17.
<br /> 19. Sale of Note; Change of Loa�� Servicer. The Note or a partial interest in the Note (together with this Security
<br /> Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known
<br /> as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may be one
<br /> or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be
<br /> given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and
<br /> address of the new Loan Servicer and the address ro which payments should be made. The notice will also contain any other �•
<br /> information required by applicable law. �
<br /> 20. Hazardous Substances. Borrower shall not cause or perniit the presence, use, disposal, storage, or re(ease of any
<br /> Hazardous Substances on or in the Property. Borrower shal( not do, nor allow anyone else to do, anything affecting the
<br /> Property that is in violation of any Environmental Law. The preceding two sentences shall not app(y to the presence, use, or
<br /> storage on the Property of small yuantities of Hazardous Substances that are generally recognized to be appropriate to normal
<br /> residential uses and to maintenance of the Property.
<br /> Page 3 oi 4 Form 3028 9/90
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