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substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to
<br />one- (welfth 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 lieu 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
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<br />condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and
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<br />shall be paid to Lender.
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<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument,
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<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
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<br />market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this
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<br />Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by
<br />this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total
<br />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 shall be paid to Borrower. In the event of a partial taking of the Property in which the fair
<br />market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the
<br />taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall
<br />be 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 if, after notice by Lender to Borrower that the condemnor offers to make an
<br />award or settle a claim for damages, Borrower fails 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 sums
<br />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 shall 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 modification
<br />of amortization of the sums secured 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 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
<br />of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's
<br />successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the
<br />exercise of any right or remedy.
<br />12. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements of this
<br />Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of
<br />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
<br />secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or
<br />make any accommodations with regard to the 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
<br />loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge
<br />to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to
<br />Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct
<br />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
<br />it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address
<br />or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail 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 shall 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
<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
<br />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 it
<br />is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without
<br />Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this
<br />Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date
<br />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
<br />less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this
<br />Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies
<br />permitted by this Security Instrument without further notice or demand on Borrower.
<br />18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have
<br />enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as
<br />applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this
<br />Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays
<br />Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b)
<br />cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument,
<br />including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure
<br />that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by
<br />this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the
<br />obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall
<br />not apply in the case of acceleration under paragraph 17.
<br />19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security
<br />Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known
<br />as the "Loan Servicer ") that collects monthly payments due under the Note and this Security Instrument. There also may be one
<br />or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be
<br />given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and
<br />address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other
<br />information required by applicable law.
<br />20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any
<br />Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the
<br />Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or
<br />storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal
<br />residential uses and to maintenance of the Property.
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