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<br />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 shall comply 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 falls 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
<br />may include paying any sums secured by alien which has priority over this Security Instrument, appearing in court, paying
<br />reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph
<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. 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 ban 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 uses to be in effect, Borrower shad 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 shall 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 Neu 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 shag be paid to Borrower. , In the event of a partial taking of the Property in which the fair market
<br />value of the Property irmmediatey 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 Instrurront 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
<br />award or settle a claim for damages, Borrower toga 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 shag 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 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
<br />Borrower shall not operate to release the liability of the original Borrower or Borrower's successors In Interest. Lender shag not
<br />be required to commence proceedings against any successor In interest or refuse to extend 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 shag 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. The covenants and
<br />agreements of this Security Instrument shag bind and benefit the successors and assigns of Lender and Borrower, subject to the
<br />provisions of paragraph 17. Borrower's covenants and agreements shag 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 without 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 ban charges collected or to be collected In connection
<br />with the loan exceed the permitted limits, then: (a) any such loan charge shag 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 shag be directed to the Property Address
<br />or any other address Borrower designates by notice to Lender. Any notice to Lender shag be given by first class mall 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 shag 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 shag 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
<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 without 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 shag be given one conformed copy of the Note and of this Security Instrument.
<br />F1316.LMG (1/99) Page 3 of 5
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