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99 110096
<br /> Unless Lender and Borrower otherwise agree in writing,any application 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 paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and
<br /> proceeds resultiag from clamage to the Property prior to the acquisidon shall pass to Lender to the extent of the sums
<br /> secured by this Security Instn�ment immediately prior to the acquisition.
<br /> If Bonower obtains any other hazard insurancc or any other insurance on the Property and such insurance is not
<br /> specifically required by Lender, then such insurance shall (i) name I,ender as loss payee thereunder and (ii) be subject
<br /> to the provisions of this paragraph S.
<br /> 6. Pt+cscivation, Mxintsnat� xnd Protoctian of tbc PmpertY; Bomower's Laan Application; I.easeholds.
<br /> Borrowcr 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 acdon or proceeding, whether civil or criminal, is begun that
<br /> in L,ender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien
<br /> created by this Security Instnunent or Lender's security interest. Borrower may cure such a default and reinstate, as
<br /> provided in paragraph 18,by causing the acdon 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 impairment 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 action or proceeding purporting to affect
<br /> thc Property or any portion thereof or Borrowcr's title thereto, the validity or priority of the lien created by this
<br /> Security Instnunent, or the rights or powers of Lcnder or Trustee with respect to this Security Instrument or the
<br /> Property. All causes of action of Borrower, 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 cotwecdon with any transacdon financed in whole or in
<br /> part by the proceeds of the Note or any other potc sccured by this Security Iustrument 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 /> acdon for fraud or concealment of a inaterial fact,are, at Lender's option, assigned to Lender, and the proceeds thereof
<br /> shall be paid directly to Lender who, after deducting therefrom all its expenses, includin,g reasonable attorneys' fees,
<br /> may apply such proceeds to the sums secured by the Security Inskruument 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 /> apdon, appear in and prosecute in its own natne any action or proceeding to enforce any such cause of action and may
<br /> make any compromise or settlement thereof. Bonower agrees to ezecute such fi�rther assignments and any other
<br /> instruments as from time to time may be r�ecessary to effectuate the foregoing provisions and as Lender shall request.
<br /> Borrower shall also he in default if Aonower, during the loan application process, gave materially false or
<br /> inaccurate inforniadon or statements to Lender (ar failed to provide Lender with any material information) in
<br /> connection with the loan evidenced by the Note, including, but not limited to, representations concerning Bonower's
<br /> occupancy of the Property as a principal residen�e. If this Security Instxument is on a leasehold, Borrower shall comply
<br /> with all the provisions of ths lease. If Borrower acquires fee dtic to the Property, the leasehold and the fee title sha11
<br /> not merge unless Lender agrees to the mergcr in wridng.
<br /> 7. Protection of I.endcr's Rights in the Property. If Bonower fails to perform the covenants and agreements
<br /> contair�ed in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br /> Property (such sGS a proceeding in bat�uptcy, probate, for condemnation or forfeiture or to enforce laws or
<br /> reguladons), 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. I.ender's actions may include paying any sums secured by a lien which has priority over this
<br /> Security Instrument, appearin,g in court, paying reasonable attorneys' fees and entering on the Property to make repairs.
<br /> Although I.ender may take acdon under this paragraph 7,Lender does not have to do so.
<br /> Any acnounts disbursed by L.ender under ttus paragraph 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 time to time and shall be payable, with interest,
<br /> upon nodce from LeAder to Borrower requestittg payment.
<br /> 8. Mortgage Insuta�ice. If I..ender required mortgage insurance as a condition of maldng the loan secured by this
<br /> Security Instrument, 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, Bonower shall pay
<br /> the premiums required to obtain coverage substantially equivalent to We 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 substantially 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 inortgage 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 I.ender requires) provided
<br /> by an insurer approved by Lender again becomes available and is obtained. Borrower 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 atty written agreement between Borrower and Lender or applicable law.
<br /> 9. Incpecdon. L.ender 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. Candetnnation. 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 We 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 S hereof with respect to insurance proceeds.
<br /> If the Property is abandoned by Bonower, or if,after notice by I.ender to Bonower khat the condemnor offers to
<br /> make an award or setde a claim for damages, Borrower fails to respond to L,ender within 30 days after the date the
<br /> nodce 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 /> NFBAAS3�► A1tM P1toCiYAKB (AEV. 03�97)
<br /> n� �y.u�n.ta..c�oo>�9.i�ss Paga 3 oY 7
<br /> Borrower Initials � � �� ,�t_°/
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