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Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be
<br /> dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or
<br /> other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in
<br /> default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or
<br /> failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not
<br /> limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br /> Instrument is on a leasehold, Borrower shail compiy with all the provisions of the lease. If Borrower acquires fee title to the
<br /> Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br /> 7. 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 the Property
<br /> (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may �
<br /> do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions d
<br /> may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying O
<br /> reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph �y
<br /> 7, Lender does not have to do so. �
<br /> Any amounts disbursed by Lender under paragraph 7 shall become additional debt of Borrower secured by this Security �
<br /> Instrument. Uniess Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of �
<br /> disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. �
<br /> 8. 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 any reason, the
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br /> substantially equivalent mortgage insurance coverage is not available, Borrower shali pay to Lender each month a sum equal to
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or 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 entries 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 any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and
<br /> 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 Property in which
<br /> the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured
<br /> by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums
<br /> secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the
<br /> total 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 market
<br /> value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking,
<br /> unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be
<br /> 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 not�ce by Lender to Borrower that the condemnor offers to make an
<br /> award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given,
<br /> Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the
<br /> sums 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 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of cne time tor paymenc or
<br /> modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of
<br /> Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not
<br /> be required to commence proceedings against any successor in interest or refuse to eMend time for payment or otherwise
<br /> modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or
<br /> Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or
<br /> preclude the exercise of any right or 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
<br /> Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey
<br /> that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the
<br /> sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify,
<br /> forbear or make any accommodations with regard to the terms of this Security Instrument or the Note wkhout that Borrower's
<br /> consent
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan
<br /> charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection
<br /> with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce
<br /> the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be
<br /> refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a
<br /> direct 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 it
<br /> by first class mail unless applicable 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 Lender shall be given by first class mail to
<br /> Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for 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. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the
<br /> jurisdiction in which the Property is located. In the event that any provision or ciause of this Security Instrument or the Note
<br /> conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be
<br /> given effect wi4hout the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to
<br /> be severable.
<br /> 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. I
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