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- 7. Protection of Lender's Rights in the Property. ir eoROwer tai�s co perform tne co�enancs and a9reemencs
<br /> contained 'n this Security Instrument, or there is a legal proceeding that may sipnificanty affect Lender's riphts in the Property (such as
<br /> a proceeding in bankruptcy, probate, for condemnation or forfeRure or to enforoe 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 whbh has prioriry over this Security Instrument, appearing in court, paying reasonabie attomey's fees and �
<br /> entering on the Property to make repairs. ARhough Lender may take action under this paragraph 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragreph 7 shall become addkional debt of Borrower secured by this Security r
<br /> Instrument. Unless Borrower and Lender agree to other terms of payrtient, these amounts shall bear interest from the date of �
<br /> disbursement at the Note rate and shall be payabie, with interest, upon notice from Lender to Borrower requesting payment. r
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condkion of making the ban secured by this Security �
<br /> Instrument, Borrower shall pay the premiums requ'red to maintain the mortgage insurance in effect. If, for any reason, th� mortgage �
<br /> insurance coverege required by Lender lepses or ceases to be in effect, BoROwer shall pay the premiums required to obtain coverage �
<br /> substentialy equival�t to the mortgage insurance prevbusy h effect, at a cost substantiely equNalent to the cost to Borrower of the
<br /> mortgage insurance previousy in eifect, irom an akemate moRgage insurer approved by Lender. If substantially equivalent mortpege
<br /> insurance coverage is not available, BoROwer shall pay to Lender each month a sum equal to one-twelfth of the yeary moRpaye
<br /> insurance premium being paid by Borrower when the insurance coverege lapsed or cessed to be h effect. Lender will eccept, 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, if mortgage hsurance coverage (in the amount and for the period that Lender requires) provided by an hsurer
<br /> approved by Lender again becomes available and is obtained. 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 with any written
<br /> agreement between Borrow� and Lender or applicable law.
<br /> 9. Inspection. Lender or ks agent may make reasonable entries upon and inspections of the Property. Lender shall give
<br /> Borrower notice at the time of or prior to an inspection specHying reasonable cause for the inspection.
<br /> 10. Condemnation. The prxeeds of any awerd or claim for damages, direct or consequentisl, in connection with any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be
<br /> paid 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 Instrument,
<br /> whether or not then due, with any excess paid to BoROwer. In the event of a partisl takinp of the Property in which the fair market
<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 immedietey before the taking, unless Borrower and Lender othenvise agree in wrRing, the sums secured by this Security
<br /> Instrument shail be reduced by the amount of the prxeeds multiplied by the folbwing fraction: (a) the total amount of the sums
<br /> secured immediatey before the taking, dNided by (b) the fa'r market value of the Property immedieteiy before the taking. Any balance
<br /> shall be paid to Borrower. In the event of a partial taking of the Property in which the fair merket value of the Property immediatey
<br /> before the taking is less than the amount of'the sums secured immediatey before the taking, unless BoROwer and Lender otherwise
<br /> agree � 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, aRer notice by Lender to Borcower that the condemnor offers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender within 30 days a(ter the date the notice is given, Lender is suthorized
<br /> to collect and appy the proceeds, at 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 writing, any epplication of proceeds to principal shall not extend or postpone the
<br /> due date of the monthy payments referred to in paragrephs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released: Forbearance By Lender Not a Waiver. �tension of cne c�me for payment or
<br /> mod'rfication 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 liebility of the orginal Borrower or Borrower's successors in interest. Lender shall not be required to
<br /> commence prxeedings against any successor in interest or retuse to extend time for payment or otherwise modify amortization of the
<br /> sums secured by this Security Instrurt�ent by reason of any demand made by the oripinal Borrower or Borrowei's successors in
<br /> interest. My forbearance by Lender in exercising any right or remedy sheli not be a waiver of or preclude the exercise of any rght or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. rne co�enancs and
<br /> agreements of this Security Instrument shall bind and benefk the successors and assigns of �ender and Borrower, subject to the
<br /> provisions of paragraph 17. Borrowe�s covenents and agreements shall be joint and several. Any Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is casigning this Security Instrument only to mortgage, grant, and convey that
<br /> Borrowers 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 Borrowers consent.
<br /> 13. Loan Charges. If the ban secured by this Security Instrument is subject to a lew which sets meximum loan charges,
<br /> and that law is finaly interpreted so that the interest or other ban cherges collected or to be collected in connection with the loan
<br /> exceed the permitted limits, then; (a) any such ban cherges shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit; and (b) any sums akeady collected firom BoROwer whbh exceeded Rermitted limits will be retunded to Borrower. 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 und�the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security instrument shail be given by delivering it or by mailing R by
<br /> first class mail unless applicable Iflw requires use of another method. The notice shall be directed to the Property Address or any
<br /> other address Borrower desipnates by notice to Lender. Any notice to Lender shall be given by first class meil to Lender's address
<br /> stated herein or any other address Lender desipnates by notice to Borrower. Any notice provided for in this Security Instrument shall
<br /> be deemed to have been given to Borrower or Lender when given as provided in this paragraph. _
<br /> 15. Governing Law; Severability. rnis securicy inswment snan be govemed by rederai �aw and tne �aw or tne
<br /> jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conHicts
<br /> with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note whfch can be gNen effect
<br /> without the conflicting provision. To this end the provisbns of this Securiry Instrument and the Note are declared to be severable.
<br /> 16. Borrower's Copy. Borrow� shall be given one confortned copy of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. it au or any part ot tne Property or any
<br /> interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transfereed and Borrower � not a natural person)
<br /> without Lenders prior written consent, Lender may, at its option, require immediate payment in fuli of all sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender ff exercise is prohibited by federat lew 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
<br /> than 30 days irom the date the notice is deiivered or mailed within which the Borrower must pay all sums secured by this Security
<br /> Instrument. If BoROwer fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this
<br /> Security Instrument without tuRher notice or demend on Borrower. Form soze e/eo
<br /> F1029.LMO(10/99) Pay� 3 of 5
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