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200001655
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained In
<br />this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in
<br />bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever Is necessary
<br />to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien
<br />which has priority over this Security Instrument, appearing in court, paying reasonable attorney's fees and entering on the Property to make
<br />repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument.
<br />Unless Borrower and Lender agree to other 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 payment.
<br />8. Mortgage Insurance. If Lender required mortgage Insurance as a condition of making the loan secured by this Security
<br />Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance
<br />coverage required by Lender lapses or ceases to be In effect, Borrower shall pay the premiums required to obtain coverage substantially
<br />equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance
<br />previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not
<br />available, Borrower shalt pay to Lender each month a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by
<br />Borrower when the Insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss
<br />reserve In lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, N mortgage insurance
<br />coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is
<br />obtained. Borrower shall pay the premiums required to maintain mortgage Insurance in effect, or to provide a loss reserve, until the
<br />requirement for mortgage 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 live Borrower
<br />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 paid
<br />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, whether or
<br />not then due, with any excess 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 equal to or greater than the amount of the sums secured by this Security Instrument Immediately before the
<br />taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount
<br />of the proceeds multipiled by the following fraction: (a) the total amount the of sums secured immediately before the taking, divided by (b) the
<br />fair market value of the Property immediately before the taking. Any balance shall be 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 less than the amount of the sums secured immediately
<br />before the taking, 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 9, after notice by Lender to Borrower that the condemnor offers to make an award or settle
<br />a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and
<br />apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether
<br />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 due
<br />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 modification
<br />of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate
<br />to release the liability of the original Borrower or Borrower's successors in Interest. Lender shall not be required to commence proceedings
<br />against any successor In interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security
<br />Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in
<br />exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br />12. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements of
<br />this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph
<br />17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co -signs this Security Instrument but does not
<br />execute the Note: (a) is co- signing this Security Instrument only to mortgage, grant, and convey that Borrowers Interest in the Property under
<br />the terms of this Security 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 terms of this Security
<br />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, and that
<br />law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the
<br />permitted limits, then; (a) any such loan charges shall be reduced by the amount necessary to reduce the charge to the permitted limit; and
<br />(b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make
<br />this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the
<br />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 first
<br />class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address
<br />Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lenders address stated herein or any
<br />other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been
<br />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 jurisdiction In
<br />which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law,
<br />such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting
<br />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 interest in
<br />it is sold or transferred (or If a beneficial interest In Borrower is sold or transferred and Borrower is not a natural person) without Lender's
<br />prior written consent, Lender may, at its option, require Immediate payment in full of all sums secured by this Security Instrument. However,
<br />this option shall not be exercised by Lender If exercise is prohibited by federal law as of the date of this Security Instrument.
<br />If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30
<br />days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security Instrument. If
<br />Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument
<br />without further notice or demand on Borrower.
<br />Form 3028 9/90
<br />F40091M0 (11/88) Page 3 of 5
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