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200000150
<br /> r. Protection of Lender's Rights in the Property. ir Borrowe� fai�s co perform me covenancs and a9reemencs
<br /> contained in this Security Instrument, or there is a legal proceeding that may significantly atfect lenders riphts in the Property (such as
<br /> a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce lews or reguletions), then Lender may do and pay for
<br /> whatever is necessary to protect the value of the Property and Lendei's rights in the Property. Lender's ections may include paying
<br /> any sums secured by a lien which has priority over this Security instn�ment, appearing in court, paying reasonable attomey's fees and
<br /> enter�g on the Property to make repairs. ARhough Lender may take action under this paragraph 7, Lend� does not have to do so.
<br /> My amounts disbursed by �ender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear �terest t�om the date of
<br /> disbursement at the Note rate and shail be payable, with interest, upon notice from Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condftion of making the ban secured by this Security '
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the �nortgage
<br /> Insurance coverage required by Lender lapses or ceases to be in effect, Borrower shali pey the premiums required to obtain coverege
<br /> substantially equivalent to the mortgage insurance previously in effect, at a cost substantialy equivalent to the cost to BoRower of the
<br /> mortgage insurance previously rc� effect, from an altemate mortgage insurer approved by Lender. If substantialy equivalent mortpeqe
<br /> insurance coverage is not available, Borrower shall pay to Lender eech month a sum equal to one-tweNth of the yearly mortpage
<br /> insurance premium being paid by Borrower when the insurance coverege lapsed or ceased to be in effect. Lender wNl accept, use and
<br /> retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments mey no bnger be required, at the
<br /> option of Lender, 'rf mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer
<br /> approved by Lender again becomes available and is obtained. Borrower shali pay the premiums required to maintain mortyaqe
<br /> insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurence ends in accordance with any writtten
<br /> agreement between Borrower and Lender or applicable law.
<br /> 9. 111Sp2Cti011. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give
<br /> Borrower notice at the time of or prior to an inspection specirying reasonable cause for the inspection.
<br /> 10. 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 assi�ned and shall 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 which the fair market
<br /> value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds mukiplied by the following iraction: (a) the total amount of the sums
<br /> secured immediately before the taking, divided by (b) the fair market value of the Property immediatey before the taking. Any balance
<br /> shall be paid to Borrower. in the event of a partial taking of the Property in which the fair market value of the Property immediately
<br /> before the taking is less than the amount of the sums secured immediatey before the taking, unless BoRower and Lender otherwise
<br /> agree in wrRing or unless applicabie 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 'rf, after notice by Lender to Borrower that the condemnor offers to meke an award or
<br /> settle a claim for damages, Borrower faiis to respond to Lender wkhin 30 days after the date the not�ce is given, Lender is authorixed
<br /> to collect and apply the 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 or postpone the
<br /> due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released: Forbearance By Lender Not a Waiver. Extension of tne time for 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 to release the liability of the original BoRower or Borrowers successors in interest. Lender shall not be required to
<br /> commence proceedings against any successor � interest or refuse to extend time for paym�t or otherwise modiy amortizatbn of the
<br /> sums secured by this Security Instrument by reason of any demand made by the original BoRower or Borrower's suCcessors in
<br /> interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the e�cercise of any �ht or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. rne covenants end
<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. My Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-sign�g this Security Instrument ony to mortgage, grant, and convey that
<br /> BoRowers interest in the Property under the terms of this Security Instrument; (b) is not personaly obligated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to eoctend, modify, forbear 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. it tne loan secured by this Security Instrument is subject to a law which sets maximum ban 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 /> pertnitted I'knit; and (b) any sums already coilected from Borrower which e�cceeded permitted limits wfll be refunded to Borrower. Lender
<br /> may choose to make this refund by reducing the principai owed under the Note or by making a direct payment to Borrower. If a
<br /> refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charpe under the Note.
<br /> 14. NOtIC2S. Any not�ce to Borrower provided for in this Security Instrument shall be given by delh�ring ft or by mafling R by
<br /> fKst class mail unless applicable law requires use of another method. The notica shall be d�ected 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 Borrower. Any notice provided for in this Security InsUument 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 Securky 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 Instrum�t or the Note conflicts
<br /> with applicable Iaw, such conflict shall not affect other provisions of this Security Instrument or the Note which can be gWen 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 of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. if au or any part ot the Property or any
<br /> interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
<br /> without Lender's prior written consent, Lender may, at its option, requi�e immediate paym�t in full of all sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender ff exercise is prohibRed by federal law as of the date of this Security
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less
<br /> than 30 days from the date the notice is delivered or mailed wkhin which the Borrower must pay all sums secured by this Security
<br /> Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this
<br /> Securfty Instrument without further notice or demand on BOROWB�. Form 3028 B/90
<br /> F702B.LM�(10/B9) Page 3 0(5
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