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<br /> In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if
<br /> not made promptly by Borrower.All insurance proceeds are hereby assigned to Lender and shall be paid to Lender to the extent of all sums
<br /> secured by this Security Instrument,subject to the terms of any mortgage,deed of trust or security agreement with a lien which has priority
<br /> over this Security Instrument. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restore or
<br /> repair the Property, if it is economically feasible to do so.
<br /> If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed
<br /> by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the
<br /> insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Security Instrument.
<br /> 6. Preservation and Maintenance of Property;Leaseholds;Condominiums;Planned Unit Developments.Borrower shall keep the
<br /> Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions
<br /> of any lease if this Security Instrument is on a leasehold. If this Security Instrument is on a unit in a condominium or a planned unit
<br /> development,Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium
<br /> or planned unit development,the by-laws and regulations of the condominium or planned unit development,and the constituent documents.
<br /> 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Security
<br /> Instrument, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at
<br /> Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees, and
<br /> take such action as is necessary to protect Lender's interest.Any amounts disbursed by Lender pursuant to this paragraph 7,with finance
<br /> charges thereon,at the rate provided in the Credit Agreement, shall become additional indebtedness of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to
<br /> Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action
<br /> hereunder.Any action taken by Lender under this paragraph shall not cure any breach Borrower may have committed of any covenant or
<br /> agreement under this Security Instrument. Borrower agrees that Lender is subrogated to all of the rights and remedies of any prior lienor,
<br /> to the extent of any payment by Lender to such lienor.
<br /> 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property,provided that Lender
<br /> shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property.
<br /> 9. Condemnation.The proceeds of any award or claim for damages,direct or consequential,in connection with any condemnation
<br /> or other taking of the Property,or part thereof, or for conveyance in lieu of condemnation,are hereby assigned and shall be paid to Lender,
<br /> to the extent of any indebtedness under the Credit Agreement, subject to the terms of any mortgage, deed of trust or other security
<br /> agreement with a lien which has priority over this Security Instrument.
<br /> 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of
<br /> 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, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to
<br /> commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums
<br /> secured by this Security Instrument by reason of any demand made by the original Borrower and Borrower's successors in interest.Any
<br /> forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or
<br /> preclude the exercise of any such right or remedy.
<br /> 11. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements herein contained
<br /> shall bind,and the rights hereunder shall inure to,the respective successors and assigns of Lender and Borrower, subject to the provisions
<br /> of paragraph 21 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Security
<br /> Instrument, but does not execute the Credit Agreement, (a) is co-signing this Security Instrument only to grant and convey that Borrower's
<br /> interest in the Property to Trustee under the terms of this Security Instrument, (b) is not personally liable under the Credit Agreement or
<br /> under this Security Instrument,and(c)agrees that Lender and any other Borrower hereunder may agree to extend,modify,forbear,or make
<br /> any other accommodations or amendments with regard to the terms of this Security Instrument or the Credit Agreement, without that
<br /> Borrower's consent and without releasing that Borrower or modifying this Security Instrument as to that Borrower's interest in the Property.
<br /> 12. Notice. Except for any notice required under applicable law to be given in another manner, (a)any notice to Borrower provided
<br /> for in this Security Instrument shall be given by delivering it or by mailing such notice by certified mail addressed to Borrower at the
<br /> Property Address or at such other address as Borrower may designate by notice to Lender as provided herein,and(b)any notice to Lender
<br /> shall be given by certified mail to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower
<br /> as provided herein. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when
<br /> given in the manner designated herein.
<br /> 13. Governing Law; Severability. The state and local laws applicable to this Security Instrument shall be the laws of the
<br /> jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of Federal law to this Security
<br /> Instrument. In the event that any provision or clause of this Security Instrument or the Credit Agreement conflicts with applicable law,
<br /> such conflict shall not affect other provisions of this Security Instrument or the Credit Agreement which can be given effect without the
<br /> conflicting provision, and to this end the provisions of this Security Instrument and the Credit Agreement are declared to be severable.
<br /> As used herein,"costs,""expenses"and"attorneys'fees"include all sums to the extent not prohibited by applicable law or limited herein.
<br /> 14. Prior Mortgage or Deed of Trust; Modification; Future Advance. Borrower shall not enter into any agreement with the holder
<br /> of any mortgage, deed of trust or other security agreement which has priority over this Security Instrument by which that security
<br /> agreement is modified,amended, extended, or renewed,without the prior written consent of the Lender. Borrower shall neither request nor
<br /> accept any future advance under a prior mortgage, deed of trust, or other security agreement without the prior written consent of Lender.
<br /> 15. Borrower's Copy. Borrower shall be furnished a copy of the Credit Agreement and of this Security Instrument at the time of
<br /> execution or after recordation hereof.
<br /> 16. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation,improvement,
<br /> repair,or other loan agreement which Borrower may enter into with Lender.Lender,at Lender's option, may require Borrower to execute and
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