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7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covvennanTs aA gAgents
<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.
<br />Any amounts disbursed by Lender 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 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 Security
<br />Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage
<br />insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage
<br />substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
<br />mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage
<br />insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one - twelfth of the yearly mortgage
<br />insurance premium being paid by Borrower when the Insurance coverage lapsed or ceased to be in effect. Lender will accept, use and
<br />retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the
<br />option of Lender, if 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 shall pay the premiums required to maintain mortgage
<br />insurance In effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written
<br />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 N, after notice by Lender to Borrower that the condemnor offers to make an award or
<br />settle a claim for damages, Borrower fails 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 ban 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 mail 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 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 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 the 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
<br />than 30 days from the date the notice is delivered or mailed within 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 />Security Instrument without further notice or demand on Borrower
<br />Form 3028 9 /90
<br />F10291M0 (10/99) Page 3 of 5
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