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<br /> Unless I,ender and Borrower otherwise agree in writing,any applicadon of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the
<br /> payments. If under pazagraph 21 the Property is acquired by Lender, Bonower's right to any insurance policies and
<br /> proceeds resulting from damage to the Property prior to the acquisition sha11 pass to L.ender to the extent of the sums
<br /> secured by this Security Instrument immediately prior to the acquisition.
<br /> If Bonower obtains any other hazard insurance or any other insurance on the Property and such insurance is not
<br /> specifically required by Lender, then such insurance shall (i) name Lender as loss payee thereunder and (ii) be subject
<br /> to the provisions of this paragraph 5.
<br /> 6. Preservation, Maintena�e and Pt+otaction of tbe ProPertY; Bormw�er's I.oan Applicatioq I.eas�olds.
<br /> Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the
<br /> Property. Borrower sha11 be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that
<br /> in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien
<br /> created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as
<br /> provided in paragraph 18,by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br /> determination, precludes forfeiture of the Borrower's interest in the Property or other material unpairment of the lien
<br /> created by this Security Instrument or Lender's security interest.
<br /> Borrower shall, at Borrower's own expense, appear in and defend any acdon or proceeding purporting to affect
<br /> the Property or any portion thereof or Borrower's title thereto, the validity or priority of the lien created by this
<br /> Security Instrument, or the rights or powers of Lender or Trustee with respect to this Security Instrument or the
<br /> Property. All causes of action of Bonower, whether accrued before or after the date of the Security Instrument, for
<br /> damage or injury to the Property or any part thereof, or in connection with any transacdon financed in whole or in
<br /> part by the proceeds of the Note or any other note secured by this Security Instrument by Lender, or in connection
<br /> with or affecting the Property or any part thereof, including causes or action arising in tort or contract and causes of
<br /> action for fraud or concealment of a material fact,are, at Lender's option, assigned to Lender, and the proceeds thereof
<br /> sha11 be paid direcfly to I,ender who, after deducting therefrom all its expenses, including reasonable attorneys' fees,
<br /> may apply such proceeds to the sums secured by the Security Instrument or to any deficiency under the Security
<br /> Instrument or may release any monies so received by it or any part thereof, as Lender may elect. Lender may,at its
<br /> option, appear in and prosecute in its own name any action or proceeding to enforce any such cause of action and may
<br /> make any compromise or settlement thereof. Borrower agrees to execute such further assignments and any other
<br /> instruments as from time to time may be necessary to effectuate the foregoing provisions and as Lender sha11 request.
<br /> Borrower shall also be in default if Bonower, during the loan application process, gave materially false or
<br /> inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br /> connecdon with the loan evidenced by the Note, including, but not limited to, representadons concerning Borrower's
<br /> occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower sha11 comply
<br /> with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall
<br /> not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of I.ender's Rights in the Pmperty. 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
<br /> Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or
<br /> regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's
<br /> rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this
<br /> Security Instrument, appearing in court,paying reasonable attorneys' fees and entering on the Property to make repairs.
<br /> Although Lender may take acdon under this paragraph 7,Lender dces not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Bonower secured by
<br /> this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
<br /> interest from the date of disbursement at the Note rate in effect from time to time and shall be payable, with interest,
<br /> upon notice from Lender to Bonower requesting payment.
<br /> 8. Mortgage Insivance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instnunent, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for
<br /> any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay
<br /> the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at
<br /> a cost substantially equivalent to the cost to Bonower of the mortgage insurance previously in effect,from an alternate
<br /> mortgage insurer approved by Lender. If substandally equivalent mortgage insurance coverage is not available,
<br /> Bonower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being
<br /> paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain
<br /> these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at
<br /> the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided
<br /> by an insurer approved by Lender again becomes available and is obtained. Bonower shall pay the premiums required
<br /> to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance
<br /> ends in accordance with any written agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may malce reasonable entries upon and inspections of the Property. Lender
<br /> shall give Bonower 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 �.
<br /> any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnadon, are hereby '�
<br /> assigned and shall be paid to Lender. Lender may apply, use or release the condemnation proceeds in the same
<br /> manner as provided in pazagraph 5 hereof with respect to insurance proceeds.
<br /> If the Property is abandoned by Borrower, or if,after notice by Lender to Borrower that the condemnor offers to
<br /> make an awazd or setfle a claim for damages, Bonower fails to respond to Lender within 30 days after the date the
<br /> notice is given,Lender is authorized to collect and apply the proceeds, at its opdon, either to restoration or repair of
<br /> the Property or to the sums secured by this Security Instrument, whether or not then due.
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<br /> Bonower Initials
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