|
' � ' . RE•RECORDED 99'1�sQ,46
<br /> ��- 1�6159
<br /> Unless Lender and Bonower otherwise agree in wridng,any applicadon of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly payments refened to in paragraphs 1 and 2 or change the amount of the
<br /> payments. If under paragraph 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 Lender 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. Pre.cervation, Maintena�e and Protection of the Praperty; Boirow�er's I.oan Application; Leaseholds.
<br /> Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the
<br /> Property. Borrower shall 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. Bonower 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 Bonower's interest in the Property or other material impairment of the lien
<br /> created by this Security Instrument or Lender's security interest.
<br /> Bonower shall, at Borrower's own expense, appear in and defend any action or proceeding pucporting to affect
<br /> the Property or any portion thereof or Bonower's title thereto, the validity or priority of the lien created by tlus
<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 transaction financed in whole or in
<br /> part by the proceeds of the Note or any other note secured by this Security Instnunent by L,ender, 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 opdon, assigned to Lender, and the proceeds thereof
<br /> shall be paid direcdy to Lender who, after deducting therefrom all its expenses, including reasonable attomeys' 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 /> opdon, appear in and prosecute in its own naaae 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 shall request.
<br /> Bonower shall also be in default if Borrower, during the loan application process, gave materially false or
<br /> inaccurate information or statements to Lender (or failed to provide I.ender with any material inforniadon) in
<br /> connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's
<br /> occupancy of the Property as a principal residence. If this Security Instr�ment is on a leasehold, Bonower shall comply
<br /> with all the provisions of the lease. If Bonower 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 Property. If Bonower 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 /> Pmperty (such as a proceeding in banl�uptcy, 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 acdons may include paying any sums secured by a lien which has priority over tlus
<br /> Security Instrument, appearing in court,paying reasonable attorneys' fees and entering on the Property to make repairs.
<br /> Although Lender may take action under this paragraph 7,Lender dces not have to do so.
<br /> Any amounts disbursed by L.ender under this pazagraph 7 shall become additional debt of Borrower secured by
<br /> this Security Instrument. Unless Bonower 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 kime to time and shall be payable, with interest,
<br /> upon notice from Lender to Borrower requesting payment.
<br /> 8. Mortgage Insuranoe. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instrument, Borrower st►all pay the premiums required to maintain the mortgage insurance in effect. If, for
<br /> any reason, the mortgage insarance 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 Borrower 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 Bonower 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. Borrower sha11 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 Bonower and Lender or applicable law.
<br /> 9. �on Lender or its agent may make reasonable entries upon and inspections of the Property. Lender
<br /> shall give Borrower nodce at the time of or prior to an inspecdon 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 condemnation, 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 paragraph 5 hereof with respect to insurance proceeds.
<br /> If the Property is abandoned by Borrower, or if,after nodce by Lender to Borrower that the condemnor offers to
<br /> make an awazd or settle a claim for damages, Borrower 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 option, either to restoration or repair of
<br /> the Property or to the sums secured by this Security Instrument, whether or not then due.
<br /> x�sx� �[rlto�s p�v. o��
<br /> na� sy.c�.,r�.ceoo�a�s-i�x Page 3 of 7
<br /> Bonower Initials '� _ _ _ _
<br />
|