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<br />the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market
<br />value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid
<br />to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of
<br />the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums
<br />secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise
<br />agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument
<br />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 Opposing Party
<br />(as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to
<br />Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous
<br />Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether
<br />or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party
<br />against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's
<br />judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property
<br />or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred,
<br />reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in
<br />Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the
<br />Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are
<br />attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the
<br />order provided for in Section 2.
<br />12. 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 Borrower or any
<br />Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest
<br />of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower
<br />or to 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 any Successors in Interest of Borrower. Any
<br />forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of
<br />payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then
<br />due, shall not be a waiver of or preclude the exercise of any right or remedy.
<br />13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower covenants and
<br />agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this
<br />Security Instrument but does not execute the Note (a "co- signer "): (a) is co- signing this Security Instrument only to
<br />mortgage, grant and convey the co- signer's interest in the Property under the terms of this Security Instrument; (b)
<br />is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any
<br />other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this
<br />Security Instrument or the Note without the co- signer's consent.
<br />Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's
<br />obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's
<br />rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and
<br />liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and
<br />agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and
<br />assigns of Lender.
<br />14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's
<br />default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument,
<br />including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the
<br />absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed
<br />as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this
<br />Security Instrument or by Applicable Law.
<br />If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the
<br />interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits,
<br />then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit;
<br />and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower.
<br />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
<br />any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance
<br />of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower
<br />might have arising out of such overcharge.
<br />15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in
<br />writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to
<br />Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other
<br />means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly
<br />requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute
<br />notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If
<br />Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change
<br />of address through that specified procedure.
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