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Borrower may cure such a de(ault and reinstete, 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 forfefture of the Borrower's interest In the Property or
<br /> other material impairment of the lien created by this Security Instrument or Lender's securiry interest. Borrower shall also be in
<br /> defauft ii BoROwer, during the loan application process, gave materially false or inaccurate fnformation or statements to Lender (or
<br /> failed to provide Lender with any material information) in connection with the loan evide�ced by the Note, including, but not
<br /> limited to, representations concerning BoROwer's occupancy of the Property as a principal residence. If this Security
<br /> Instrument is on a leasehold, Borrower shatl comply with all the provtsions oi the lease. If Borrower acquires fee title to the
<br /> Property, the leasehold and the fee title shell not merge unless Lender agrees to the merger In writing.
<br /> 7. Protection of Lender's Rights in the Property. If BoROwer tails to periorm the covenants and agreements
<br /> contained In this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rfghts in the Properry
<br /> (such as a proceeding in bankruptcy, probate, fo� condemnation or torfeiture or to eniorce laws or regulations), then Lender may
<br /> do and pay for whatever is necessary to protect the value of the Properry and Lender's rights in the Properly. Lender's actions
<br /> may Inciude paying any sums secured by a lien which has priority over this Security Instrument, appearfng In court, paying
<br /> reasonable attomeys' fees and entering on the Properiy to make repalrs. Although Lender may take action under this paragraph
<br /> 7, Lender does not have to do sa
<br /> Any amounts disbursed by Lender unde� paragraph 7 shall become ec��tional debt of Bor�ower secured by this Security
<br /> Instrument. Unless Borrower end Lender agree to other terms of payment, these amounts shall bear interest trom the date ot
<br /> disbursement et the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment.
<br /> 8. Mortgage InsuranCe. If Lender requfred mortgage insurance as a condftion oi making the loan secured by this
<br /> Security Instrument, Borrower shall pay the premlums requfred to maintain the mortgage insurance in ef(ect. If, for any reason, the �
<br /> mortgage insurance coverage required by Lender lapses or ceases to be fn eifect, BoROwer shali pay the premiums requlred to C�
<br /> obtain coverage substantially equlvalent to the mortgage insurance previousfy fn effect, at a cost substantfatly equivalent to the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an akemate mortgage insurer approved by Lender. If �
<br /> substantially equivalent mortgage insurance coverage is not eveilable, Borrower shall pay to Lender each month a sum equal to O
<br /> one-tweltth of the yearly mortgage insurance premium being paid by Borrower when the Insurance coverage lapsed or ceased to Ca
<br /> be fn etfect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage Insurance. Loss reserve 00
<br /> payments may no longer be required, at the optio� of Lender, ff mortgage fnsurance coverage (fn the amount and for the period 1-�+
<br /> that Le�der requfres) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay vt
<br /> the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requ(rement for mortgage
<br /> insurance ends in eccordance wtth any written egreement between Borcower end Lender or eppliceble law.
<br /> 9. InspeCtiOn. Lender or Rs agent may make reasonable ent�ies upon and inspections of the Property. Lender shall give
<br /> Borrower notice at the time oi or prior to an inspectfon specifyfng reasonable cause ior the inspectlon.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connectton with any
<br /> condemnatfon or other taking of any part of the Property, or for conveyance fn Ileu of condemnat(on, are hereby assigned and
<br /> shall be pafd 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 I� which
<br /> the falr 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 wr(ting, the sums
<br /> secured by this Securiiy Instrument shall be reduced by the amount oi the proceeds multiplied by the tollowing iraction: (a) the
<br /> total amount ot the sums secured immediately before the takfng, divided by (b) the fair market value oi the Property immediately
<br /> beTore the takfng. Any balance shall be paid to Borrower. In the event oi a partfai taktng oi the Property in which the fair merket
<br /> value of the Property lmmediately before the takfng is less than the amount of the sums secured immedfately betore the taking,
<br /> unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be
<br /> applled to the sums secured by this Securiry Instrument whether or not the sums are then due.
<br /> fl the Property is abandoned by Borrower, or H, after notice by Lender to Borrower that the condemnor offers to make an
<br /> award or settle a claim for damages, Bo�rower fails to respond to Lender within 30 days after the date the notice is given,
<br /> Lender ts 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 Securiry Instrument, whether or not then due.
<br /> Unless Lender and Borrower othervvise agree in writing, any applicatfon oi proceeds to principal shall not extend or
<br /> postpone the due date oi 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 oi the time for payment or
<br /> modiflcation oi 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 ifability of the original Borrower or Bo�rower's successors In interest. Lender shall not
<br /> be requlred 'to commence proceedings agafnst any successor in lnterest or refuse to extend time ior 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. My forbearance by Lender in exercising any right or remedy shall not be a walver of or
<br /> preclude the exercise ot any right or remedy.
<br /> 12. Successors and Assigns Bound; Jotnt and Several Liability; Co-signers. The covenants and
<br /> agreements oi this Security Instrument shall bind and benefit the successors and assigns of Lender and Bonower, subJect to the
<br /> provislons of paragraph 17. Borrower's covenants and agreements shall 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 fn the Property under the terms of this Securiry Instrument; (b) is not personally obligated to pay the
<br /> sums secured by this Security Instrument; and (c) egrees that Lender and any other Borrower may agree to extend, modify,
<br /> forbear or make any accommodations with regard to the tertns of this Securiry Instrument or the Note without that Borrower's
<br /> consent.
<br /> 13. Loan Charges. If the loan secured by this Securiry Instrument is subject to e law which sets maximum loan
<br /> charges, end that law is flnally interpreted so that the interest or other loan charges collected o� to be conected in connectfon "
<br /> wfth the loan exceed the permitted flmks, then: (a) any such loan charge shall be reduced by the amount necessary to reduce �
<br /> the charge to the permitted Iimft; and (b) any sums already collected trom Borrower which exceeded perrr►itted Iimits 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 BoROwer. If a retund reduces principal, the reduction will be treated as a paKial prepayment wfthout any
<br /> prepayment charge under the Note. '
<br /> 14. NotiCes. My notice to Borrower provided tor in this Security Instrument shall be given by delivering ft or by meiflng k ,_
<br /> by flrst class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address .w
<br /> or any other address Borrower deslgnates by notice to Lender. My notice to Lender shall be given by flrst class matl to •
<br /> Lender's address stated herein or any other address Lender designates by not(ce to Borrower. A�y notice provided for in this
<br /> Security Instrument shell be deemed to have been given to BoROwer or Lender when given as provfded in this paragraph.
<br /> 15. GOVerning Law; Severability. This Security Instrument shall be govemed by federal law and the law oi the
<br /> )urisdictfon in which the Property is located. In the event that any provision or clause of thts Security Instrument or the Note
<br /> conflfcts wtth applicable lew, such conflict shall not effect other provislons of this Securtty instrument or the Note whfch can be
<br /> give� etfect 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'8 COpy. Borrower shall be given one coniom►ed copy oi the Note and oi thts Security Instrument.
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