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<br /> ' 7.-Protection of Lender's Rights in the Property. if Borrower �ai�s co perrorm tne covenancs and agreemencs
<br /> contained in this Securiry Instrument, or there is a legal proceeding that may sign'rfbanty affect Lender's rights in the Property (such as
<br /> a proceed'mg in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for
<br /> whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying
<br /> any sums secured by a lien which has priority ov� this Security Instrument, eppearing in court, paying reasonable attomey's fees and
<br /> entering on the Property to make repairs. ARhough Lender may take action under this paragraph 7, Lend� does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shail become addkional debt of Borrower secured by this SeCUrity
<br /> Instrument. Unless Bo�ower and Lender agree to other terms of payment, these amounts shail bear interest irom the date of
<br /> disbursernent at the Note rate and shell be payable, with interest, upon notice from Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the ban secured by this Security
<br /> Instrument, Borrower shail pay the premiums required to maintain the mortgage insurance h effect. If, for any reason, the mortgage
<br /> insurance coverage requked by Lender lapses or ceases to be in effect, Borrower shall pay the premiums requked to obtah coverage
<br /> substantialy equivalent to the mortgege insurance previousy in effect, at a cost substantialy equivalent to the cost to Borrower of the
<br /> mortgage insurance previousy in effect, irom an aRemate mortgege insurer epproved by Lender. If substantialy equivalent mortgage
<br /> insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to on�twel(th of the yeary mortgage
<br /> insurance premium being paid by Borrower when the insurance coverege lepsed or ceased to be in effect. Lender will accept, use and
<br /> retain these payments as a bss reserve in lieu of mortgage insurance. Loss reserve payments may no bnger be required, at the
<br /> option of Lender, ff mortgage insurance coverage (in the amount and for the period that Lender requ'res) provided by an insurer
<br /> approved by Lender again becomes available and is obtsined. Borrower shall pay the premiums required to maintain mortgage
<br /> insurance in effect, or to provide a bss reserve, until the requirement for mortgage insurance ends in accordance wRh any written
<br /> agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give
<br /> Bonower notice at the time of or prior to an inspection specitying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assiened and shall be
<br /> paid to Lender.
<br /> In the event of a total taking of the Property, the prxeeds shall be applied to the sums secured by this Security Instrument,
<br /> whether or not then due, with any excess paid to Borrower. In the event of a partisl taking of the Property in which the fa'r merket
<br /> value of the Property immediatey before the taking is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immediatey before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds muftipiied by the folbwing frection: (a) the total amount of the sums
<br /> secured immediately before the taking, divided by (b) the far market value of the Property immediately before the taking. My balance
<br /> shall be paid to Borcower. In the event of a partial taking of the Property in which the fair market value of the Property immediatey
<br /> before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise
<br /> agree in writing or unless epplicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security
<br /> Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, aiter notice by Lender to Borrower that the condemnor offers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized
<br /> to collect and apply the proceeds, et its option, either to restoration or repair of the Property or to the sums secured by this Security
<br /> Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in wrking, any application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthy 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. �ccensbn or ene cime tor payment or
<br /> mod'rficaYwn of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower
<br /> shall not operate to release the liability of the original Borrower or Borrowers successors in interest. Lender shall not be required to
<br /> comme�ce proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortizatbn of the
<br /> sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in
<br /> interest. My forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and
<br /> agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the
<br /> provisions of paragraph 17. Borrowers covenants and agreements shali be joint and several. Any Borcower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant, and convey that
<br /> Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personaly obligated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any
<br /> accommodations with regard to terms of this Security Instrument or the Note without that BoROwers consent.
<br /> 13. Loan Charges. If the ban secured by this Security Instrument is subject to a law which sets maximum ban charges,
<br /> and that law is finally interpreted so that the interest or other ban charges coitected or to be collected in connection with the ban
<br /> exceed the permitted limits, then; (a) any such ban charges shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit; and (b) any sums akeady coliected fiom Borrower which exceeded permitted limits will be refunded to BoROwer. Lender
<br /> may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a
<br /> refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering k or by mailing it by
<br /> first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any
<br /> other address Borrower designates by notice to Lender. My notice to Lender shall be given by first class mail to Lende�s address
<br /> stated herein or any other address Lender designates by notice to Borrower. My notice provided for in this Security Instrument shell
<br /> be deemed to have been given to BoROwer or Lender when gNen as provided 'n thls paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall be govemed by federal law and the law of the
<br /> jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conilicts
<br /> with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect
<br /> wkhout the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable.
<br /> 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Securiry Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in 8orrower. it an or any part of the Property or any
<br /> interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
<br /> without Lender's prior written consent, Lender may, at its option, require immediate payment in iull of ait sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender 'rf exercise is prohibited by federal law as of the date of this Security
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shali provide a period of not less I
<br /> than 30 days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security
<br /> Instrument. If Borrower fails to pay these sums prior to the expiratbn of this period, Lender may invoke any remedies permitted by this
<br /> Security Instrument without further notice or demand on BOrfOWBf. Form 3028 B/90
<br /> F1028.LMa(10/B9) Page 3 ot 5-
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