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� 7. Protection of Lender's Rights in the Property. If Borrower fails 9 9 rfo 112 Oe2 n#�s and agreements contained �,
<br /> this Security Instrument, or there is a legal proceeding that may sign'rficantly affect Lender's rights in the Property (such as a proceeding in
<br /> bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary
<br /> to protect the value of the Property and Lenders rights in the Property. Lender's actions may include paying any sums secured by a lien
<br /> which has priority over this Security Instrument, appearing in court, paying reasonable attomey's fees and entering on the Property to make
<br /> repa�s. Akhough Lender may take action under this paragreph 7, Lender does not have to do so.
<br /> My amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borcower secured by this Security Instrument.
<br /> Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest trom the dete of disbursement at the Note
<br /> rate and shall be payable, with interest, upon notice from Lender to Borrower requesthg payrnent.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the ban secured by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgege insurance
<br /> coverage required by Lender lapses or ceases to be in effect, Borcower shall pay the premiums required to obtain coverage substantiely
<br /> equivalent to the mortgage insurance previousy in effect, at a cost substantiely equivalent to the cost to Borrower of the mortgage insurance
<br /> previousy in effect, (rom an aRemate mortgage nsurer approved by Lender. If substantialiy equivalent mortgage insurance coverage is not
<br /> available, Bonower shall pay to Lender each month a sum equal to one-tweNth of the yearly mortgage insurance premium being paid by
<br /> Borrower when the insurance coverage lapsed or ceased to be in eifect. Lender wili accept, use and retain these payments as a bss
<br /> reserve in lieu of mortgage insurance. Loss reserve payments may no bnger be required, at the option of Lender, ff mortgage insurance
<br /> coverage (in the amount and for the perad that Lender requires) provided by an insurer approved by Lender agein becomes availeble and is
<br /> obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a bss reserve, until the
<br /> requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or epplicable law.
<br /> 9. Inspection. Lender or Rs agent may meke reasonable entries upon and inspections of the Property. Lender shall live Borrower
<br /> notice at the time of or prior to an inspection speciying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or clewn for damages, direct or consequentiai, in connection wfth any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assipned and shall be paid
<br /> 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, whether or
<br /> not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market vak�e of the Property
<br /> immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the
<br /> taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shali be reduced by the amount
<br /> of the proceeds muRiplied by the folbwing traction: (a) the total amount the of sums secured immediately before the taking, divided by (b) the
<br /> fair market value of the Property immediately before the taking. My balance shall be paid to Borrower. In the event of a partiel takhg of the
<br /> Property in which the fair market value of the Property immediatey before the takhg is less than the amount of the sums secured knmediatey
<br /> before the taking, unless BoROw� and Lender otherwise agree in writing or unless applicable law oth�wise provides, the proceeds shall be
<br /> applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle
<br /> a claim for damages, Borrower fails to respond to Lender within 30 days aRer the dete the notice is given, Lender is authorired to collect and
<br /> apply the proceeds, at its option, ekher to restoration or repair of the Property or to the sums secured by this Security Instrument, whether
<br /> or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due
<br /> date of the monthy payrt�ents 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 of the time for payment or modification
<br /> of amortization of the sums secured by this Security Instrument granted by Lender to any successor � interest of Borcower shall not operate
<br /> to release the liability of the original Borrower or Borrowers successors in interest. Lender shall not be required to commence proceedings
<br /> against any successor in interest or refuse to ext�d time for payment or otherwise modify amortization of the sums secured by this Security
<br /> Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. My forbearance by Lender in
<br /> exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and a9reemencs ot
<br /> this Security Instrument shall bind and benefit the successors and assipns of Lender and Borrower, subject to the provisions of paragraph
<br /> 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not
<br /> execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant, and convey that Borrower's interest in the Property under
<br /> the terms ot this Securiry Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that
<br /> Lender and any other Borrower may agree to extend, modiy, forbear or make any accommodations with regard to terms of this Security
<br /> Instrument or the Note without that Borrowe�s consent.
<br /> 13. Loan Charges. If the ban secured by this Securiry Instrument is subject to a law which sets meximum ban charges, and that
<br /> law is finally interpreted so that the interest or other loan charges collected or to be coilected in connection wRh the ban exceed the
<br /> pertnitted limits, then; (a) any such loan charges shell be reduced by the amount necessary to reduce the charge to the permiKed limit; and
<br /> (b) any sums already collected from BoROwer which exceeded permitted limits will be retunded to Borrower. Lender may choose to make
<br /> this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principai, the
<br /> reduction will be treated as a partial prepayment without any prepaym�t charge under the Note.
<br /> 14. Notices. My notice to Borrower provided for in this Security Instrument shall be given by delivering k or by mailfng it by first
<br /> class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address
<br /> Borrower designates by notice to Lender. Any notice to Lender shall be given by first ckss mail to Lender's address stated herein or any
<br /> other address Lender designates by notice to Bo►rower. My notice provided for in this Security Instrument shall be deemed to have been
<br /> given to Borrower or Lender when given as provided in this paregraph.
<br /> 15. Governing Law; Severability. This Security Instrum�t shall be govemed by federal law and the law of the jurisdiction in
<br /> which the Property is bcated. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable Iaw,
<br /> such conflict shatt not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting
<br /> provision. To this end the provisions of this Security Instrument and the Note are declared to be severable.
<br /> 16. Borrower's Copy. Borrower shali be given one conformed copy of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficiai Interest in Borrower. If all or any part of the Property or any interesc in
<br /> it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) wRhout Lender's
<br /> prior wrkten consent, Lender may, at its option, require immediate payment in full of all sums secured by this Securiry instrument. However,
<br /> this option shall not be exercised by Lender 'rf exercise is prohibited by federal law as of the date of this Securfty Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30
<br /> days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security Instrument. If
<br /> Borrower fails to pay these sums prior to the e�iration of this period, Lender may invoke any remedies permitted by this Security Instrument
<br /> without further notice or demend on Borrower.
<br /> Form 3028 9/60
<br /> F4009.LM�(11/99) Paps 3 of 5
<br /> 1179
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