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<br /> Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br /> contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br /> the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or
<br /> regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and
<br /> Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority
<br /> over this Security Instrument, appearing in court,paying reasonable attorneys'fees and entering on the Property to
<br /> make repairs. Although Lender may take action under this section, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this section shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
<br /> interest from the date of disbursement at the Note rate and shall be payable,with interest, upon notice from Lender
<br /> to Borrower requesting payment.
<br /> Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for
<br /> any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall
<br /> pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in
<br /> effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,
<br /> from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is
<br /> not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage
<br /> insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender
<br /> will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments
<br /> may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the
<br /> period that Lender requires)provided by an insurer approved by Lender again becomes available and is obtained.
<br /> Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br /> until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower
<br /> and Lender or Applicable Law.
<br /> Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall
<br /> give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 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
<br /> assigned and shall be 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
<br /> Instrument, whether or not then due, with any excess 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 equal to or greater than
<br /> the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and
<br /> Lender otherwise agree in writing,the sums secured by this Security Instrument shall be reduced by the amount of
<br /> the proceeds multiplied by the following fraction: (a)the total amount of the sums secured immediately before the
<br /> taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be
<br /> paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property
<br /> immediately before the taking is less than the amount of the sums secured immediately before the taking, unless
<br /> Borrower and Lender otherwise agree in writing or unless Applicable Law otherwise provides, the proceeds shall
<br /> be 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
<br /> make an award or settle a claim for damages, Borrower fails to respond to Lender within the minimum number of
<br /> days established by Applicable Law after the date the notice is given, Lender is authorized to collect and apply the
<br /> proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security
<br /> Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br /> or postpone the due date of the payments referred to in the section titled Payment of Principal and Interest;
<br /> Prepayment and Late Charges or change the amount of such payments.
<br /> Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in
<br /> interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in
<br /> interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to
<br /> extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by
<br /> reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by
<br /> Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br /> Successors and Assigns Bound; Joint and Several Liability; Accommodation Signers. The covenants and
<br /> agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower,
<br /> subject to the provisions of section titled Transfer of the Property or a Beneficial Interest in Borrower.
<br /> Borrower's covenants and agreements shall be joint and several. Any person who co-signs this Security Instrument
<br /> but does not execute the Note ("Accommodation Signer"): (a) is co-signing this Security Instrument only to
<br /> mortgage, grant and convey that Accommodation Signer's interest in the Property under the terms of the Security
<br /> 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
<br /> the terms of this Security Instrument or the Note without that Accommodation Signer's consent.
<br /> ©2004-2012 Compliance systems,Inc.CECA-6303-2011L2 10.600
<br /> Consumer Real Estate-Security Instrument DL2036 Page 3 of6 www.compliancesystems.com
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