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200100519
<br />mortgage clause. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Leader. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be
<br />applied to restoration or repair of the Property damaged, if the restoration or repair is
<br />economically feasible and Lender's security is not lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then d!ie, with any
<br />excess paid to Borrower. If Borrower abandons the Property, or does riot answer within thirty
<br />(30) days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br />Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due.
<br />The thirty (30) day period will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to
<br />principal shall not extend or postpone the due date of the monthly payments referred to in
<br />Section One hereof, or change the amount of the payments. If under Section Eighteen hereof,
<br />the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds
<br />resulting from damage to the Property prior to the acquisition shall pass to Lender to the
<br />extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br />SECTION SIX
<br />PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS
<br />Borrower shall not destroy, damage or substantially change the Property, allow the
<br />Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to
<br />the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger
<br />in writing.
<br />SECTION SEVEN
<br />PROTECTION OF LENDER'S RIGHTS IN THE PROPERTY; MORTGAGE INSURANCE
<br />If Borrower fails to perform the covenants and agreements contained in this Security
<br />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 to enforce
<br />laws or regulations), then Lender may do and pay for whatever is necessary to protect the
<br />value of the Property and Lender's rights in the Property. Lender's actions may include
<br />paying any sums secured by a lien that has priority over this Security Instrument, appearing
<br />in court, paying reasonable attorneys' fees, and entering on the Property to make repairs.
<br />Although Lender may take action under this paragraph, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this Section Seven shall become additional debt.
<br />of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other
<br />terms of payment, these amounts shall bear interest from the date of disbursement at the Note
<br />rate and shall be payable, with interest, upon notice from Lender to Borrower_ requesting
<br />payment.
<br />If Lender requires mortgage insurance as a condition of making the loan secured by this
<br />Security Instrument, Borrower shall pay the premium required to maintain the insurance in
<br />effect until such time as the requirement for the insurance terminates in accordance with
<br />Borrower's and Lender's written agreement or applicable law.
<br />SECTION EIGHT
<br />HAZARDOUS MATERIALS
<br />Borrower shall keep the Property in compliance with all applicable laws, ordinances and
<br />regulations relating to industrial hygiene or environmental protection (collectively referred
<br />to herein as "Environmental Laws "). Borrower shall keep the Property free from all
<br />substances deemed to be hazardous or toxic under any Environmental Laws (collecti-vely
<br />referred to herein as "Hazardous Materials "). Borrower hereby warrants arid represents to
<br />Lender that there are no Hazardous Materials on or under the Property. Borrower hereby
<br />agrees to indemnify and hold harmless Lender, its directors, officers, employees and agents,
<br />and any successors to Lender's interest, from and against any and all claims, damages, losses
<br />and liabilities arising in connection with the presence, use, disposal or transport of any
<br />Hazardous Materials on, under, from or about the Property. THE FOREGOING WARRANTIES AND
<br />REPRESENTATIONS, AND BORROWER'S OBLIGATIONS PURSUANT TO THE FOREGOING INDEMNITY, SHALL
<br />SURVIVE RECONVEYANCE OF' THIS DEED OF TRUST.
<br />SECTION NINE
<br />INSPECTION
<br />Lender_ or its agent may make reasonable entries upon and inspections of the Property.
<br />Lender shall give Borrower notice at the time of or prior to an inspection specifying
<br />reasonable cause for the inspection.
<br />SECTION TEN
<br />CONDEMNATION
<br />The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of any part of the Property, or for conveyance in lieu
<br />of condemnation, are hereby 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
<br />sums secured by this Security Instrument, whether or not then due, with any excess paid to
<br />Borrower. In the event of a partial taking of the Property, unless Borrower arid Lender
<br />otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by
<br />the amount of the proceeds multiplied by the following fraction: (a) the total amount of the
<br />sums secured immediately before the taking, divided by (b) the fair market value of the
<br />Property immediately before the taking. Any balance shall be paid to Borrower.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower
<br />that the condemnor offers to make an award or settle a claim for damages, Borrower_ fails to
<br />respond to Lender within thirty (30) days after the date the notice is given, Lender is
<br />authorized to collect and apply the proceeds, at its option, either to restoration or repair
<br />of the Property or to the sums secured by this Security Instrument, whether or not then due.
<br />Unless Lender and Borrower otherwise agree in writing, any applications of proceeds to
<br />principal shall not extend or postpone the due date of the monthly payments .referred to in
<br />Section One hereof or change the amount of such payments.
<br />SECTION ELEVEN
<br />BORROWER NOT RELEASED; FORBEARANCE BY LENDER NOT A WAIVER
<br />Extension of the time for payment or modification of amortization of the sums secured
<br />by this Security Instrument granted by Lender to any successor in interest of Borrower shall.
<br />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
<br />i- nter.est or refuse to extend time for payment or otherwise modify amortization of th- SUMS
<br />secured by this Security Instrument by reason of any demand made by thf, original Borrower or
<br />Borrower's successors in interest. Any forbearance by Lender in exercising any right or
<br />remedy shall not be a waiver of or preclude the exercise of any right or remedy.
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