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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 (such as
<br />a proceeding In bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for
<br />whatever Is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may Include paying
<br />any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorney's fees and
<br />entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. C-
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security C„;
<br />Instrument. Unless 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 />S. Mortgage Insurance. If Lender required mortgage Insurance as a condition of making the loan secured by this CJf
<br />Security Instrument, Borrower shall pay the premiums required to maintain the mortgage Insurance in effect. If, for any reason, the Wt'
<br />mortgage Insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain bD
<br />coverage substantially equivalent to the mortgage Insurance previously In effect, at a cost substantially equivalent to the cost to
<br />Borrower of the mortgage Insurance previously in effect, from an alternate mortgage Insurer approved by Lender. If substantially
<br />equivalent mortgage Insurance coverage Is not available, Borrower shall pay to Lender each month a sum equal to one - twelfth of the
<br />yearly mortgage Insurance premium being paid by Borrower when the Insurance coverage lapsed or ceased to be in effect. Lender will
<br />accept, use and retain these payments as a loss reserve in lieu of mortgage Insurance. Loss reserve payments may no longer be
<br />required, at the option of Lender, if mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by
<br />an Insurer approved by Lender again becomes available and Is obtained. Borrower shall pay the premiums required to maintain
<br />mortgage Insurance In effect, or to provide a loss reserve, until the requirement for mortgage insurance ends In accordance with any
<br />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 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 multiplied by the following fraction: (a) the total amount of the sums
<br />secured Immediately before the taking, divided by (b) the fair market value of the Property immediately 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 immediately before the taking, unless Borrower and Lender otherwise
<br />agree In writing or unless applicable law 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 if, after notice by Lender to Borrower that the condemnor offers to make an award or
<br />settle a claim for damages, Borrower falls to respond to Lender within 30 days after the date the notice Is given, Lender Is authorized
<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 the time for payment or
<br />modification 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 Borrower or Borrower's successors in Interest. Lender shall not be required to
<br />commence proceedings against any successor in Interest or refuse to extend time for payment or otherwise modify amortization of the
<br />sums secured by this Security Instrument by reason of any demand made by the original Borrower 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 exercise of any right or
<br />remedy. -
<br />12. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The 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 Security
<br />Instrument but does not execute the Note: (a) Is co- signing this Security Instrument only to mortgage, grant, and convey that
<br />Borrower's Interest In the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured
<br />by this Security Instrument: and (c) agrees that Lender and any other Borrower may agree to extend, 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. If the loan secured by this Security Instrument is subject to a law which sets maximum loan 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 loan
<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 />permitted limit: and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender
<br />may choose to make this refund by reducing the principal 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 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 by
<br />first class mall unless applicable law requires use of another method. The notice shall be directed 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 mall to Lender's address
<br />stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument 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 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 clause of this Security Instrument or the Note conflicts
<br />with applicable law, such conflict shall not affect other provisions of this Security Instrument or toe Note which can be given 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 all or any part of 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, require Immediate payment In full of all sums secured by this Security
<br />Instrument. However, this option shall not be exercised by Lender If exercise is prohibited 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 than
<br />30 days from the date the notice Is delivered or malted within which the Borrower must pay all sums secured by this Security
<br />Instrument. If Borrower falls to pay these sums prior to the expiration of this period, Lender may Invoke any remedies permitted by this
<br />Security Instrument without further notice or demand on Borrower. Form 3028 9/90
<br />F10291M0 (2/96) Page 3 of 5
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