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, � 7. Protection of Lender's Rights in the Property. ir soROwe� taus to �torm cne covenants and aoreements
<br /> contained in this Securiry Instrument, or th�e is a legal proceed'ng that mey si�nificanty sifect Lenders riphts ln the PropeRy (such as
<br /> a proceeding in bankruptcy, probate, for condemnatan or forfeiture or to enforce laws or repulations), then Lender may do and pay for
<br /> whatever is necessary to protect the value of the Property and Lender's riphts in the Property. Lender's actbns may include paying
<br /> any sums secured by a lien which has priority over this Securiry 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, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additanal debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other tertns of payment, these amounts shall bear hterest from the date of
<br /> disbursement at the Note rate and shaH be payeble, with interest, upon notice irom Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required moRgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Bonower shall pay the premiums required to maintain the moRgege insurance h effect. If, for any reason, the mortgage
<br /> insurance coverage required by Lender lapses or ceases to be in eHect, Borrower shall pay the premiums required to obtain coverage
<br /> substantialy equivale�t to the mortgage insurance previousy in eHect, at a cost subsfsntially equNalent to the cost to Borrower of the
<br /> mortgage insurance previousy in effect, from an aRemate mortgage insurer epproved by Lender. If substantially equivalent mortpage �
<br /> insurance coverage is not availeble, Borrower shall pay to Lender each month a sum equal to one-tweNth of the yearly mortgege G�
<br /> insurance premium betng paid by BoROwer when the insurance coverage lapsed 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 requted, at the h�►
<br /> option of Lender, 'rf mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer F�
<br /> approved by Lender again becomes availeble and is obtained. Bonower 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 G�
<br /> agreement between Borrower and Lender or applicable law. Q'j
<br /> 9. Inspection. Lender or ks agent may make reasonable entries upon and inspectans of the Property. Lender shall give ;�Q
<br /> Borrower notice at the time of or prior to an inspection specirying reasonable cause for the inspectan.
<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 assipned 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 eoccess paid to Borrower. In the event of a partial teking of the Property in which the fair market
<br /> value of the Property immediately before the teking is equal to or greater than the amount of the sums secured by this Secu�ity
<br /> Instrument immediatey before the taking, unless Borrower and L�der otherwise agree in wrking, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds multiplied by the folbwing fraction: (a) the total amount of the sums
<br /> secured immediatey before the taking, divided by (b) the fair market value of the Property immediatey before the taking. My balence
<br /> shall be paid to Borrower. In the ev�t of a partiei teking of the Property in which the fair market value of the Property immediately
<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 applicabie law otherwise provides, the proceeds shall be appiied 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, atter notice by Lender to BoROwer that the condemnor offers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender wkhin 30 days aRer the date the notice is given, Lender is eutho�ized
<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 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. �ension of cne t�r,e for paymen� or
<br /> mod'rfication of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Bonower
<br /> shall not operate to release the liability of the original BoROwer or Borrowers successors in interest. Lender shall not be required to
<br /> commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the
<br /> sums secured by this Security Instrument by reason of any demand made by the originai 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 eocercise of any ripht or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. Tne co�enancs and
<br /> agreements of this Securiry 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 shall be joint and several. My Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgege, grant, and convey that
<br /> BoROwers interest in the Property under the tem►s 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, modiy, forbear or make any
<br /> accommodations wkh regard to tertns of this Security Instrument or the Note without that Borrower's consent.
<br /> 13. Loan Charges. If the ban secured by this Security inshument is subject to a law which sets ma�cimum ban charges,
<br /> and that law is finally interpreted so that the interest or other ban cherges collected or to be collected in connection wkh the loan
<br /> exceed the permitted limits, then; (a) any such ben charges shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit; and (b) any sums already collected from Borrower whbh exceeded permitted limits will be refunded 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 cherge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering R or by mailing k 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 BoROwer designates by notice to Lender. My notice to Lender shall be given by first class mail to Lender's address
<br /> stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall
<br /> be deemed to have been given to Borrow� or Lender when given as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Securiry 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 provisan or clause of this Security Instrument or the Note conHicts
<br /> with applicable lew, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect
<br /> without the conflicting provision. To thls �d the provisions of this Securiry Instrument and the Note are declared to be severable.
<br /> 16. Borrower's Copy. Borrower shall be given one confom�ed 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 of the Property or any
<br /> interest in it is sold or transferred (or 'rf a beneficial interest in Borrower is sold or transferred and Borrower is not a netural person)
<br /> without Lender's prior writt� consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender if 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 shall provide a period of not less
<br /> than 30 days irom 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 exp'ration of this period, Lender may invoke any remedies permitted by this
<br /> Security Instrument without iurther notice or demand on Borrower. Form aoza e/eo
<br /> F1029.LM0(10/99) Paps 3 of 5
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