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<br /> '7. Condemnation. The proceeds of any a�Hard or claim for ilamages,direct or consequential, in connection with any
<br /> condemnation or other tnking of any part of the F'mperty, ar far conveyance in place of c*�ademnation, are hereby assig�eci
<br /> a��d sh�ll bc a=� co L.ender to the extent of tl�e fual arnount of the indebtedness thai rernains unpaid undec the Note and this
<br /> 5ecurit�� Insuunient. Lender shalf spply such proc�xds to the reduction of ttie indebtedness under the Note and this Security
<br /> hr�strument, first ro anv delinquent amounts applrec! in the order provided in Paragraph 3, and thea to prepayme7t of
<br /> principal. Any application ef the proceeds to the prinr:pal shall not extend'or postpons the due date of the munthly
<br /> �r.rymenLs, which ure referred to in Paragraph 2, or change the amount of such payments. Any exce�s proceeds ovet an
<br /> smourit reyuired to pay atl outswnding indebtedness�tnder th�Note shall be paid to the entiry legaily entided thereto.
<br /> �. Fees. Lender may collect fees and charges suehorized by the Se¢netary.
<br /> 9. Giraunds for Acceleration of Debt. �
<br /> t�) Defauft. Lender may,except as limited by regulaeions issued by the Secrctary in the case of payment defaults,
<br /> require immediate payment in ful!of alt sums secvretl by this Securi!y Instrument if: '
<br /> (i) F3oirower defaulL.by failing to pay in full any mouthly paymer,t required by this Security Instrument prior
<br /> to or on the due date of the next mo►�!hly payment,or
<br /> {ii) Borrower defaults by faiLng, for a peraod of thu�ty days, to perform any other obligations contained in this
<br /> Security Instrument.
<br /> (b) Sale Wlthout CreciIt Appraval. Lender sh��ll,if permittecl by applicable!aw and with the prior approval of the
<br /> Secretary,require irzur.ediate Qayment in full uf aIl the sums secured by this Sccurity InsWment if:
<br /> (i} All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or
<br /> otherwise transferred(other;han by devise or descent)by the Borrower,and
<br /> (ii)The Property is not occupied by the purchaser oc grantee as his or her principai residence,or the purchaser
<br /> �r granree dces so occupy the Property but Iiis or her credit has not been �pproved in accordance
<br /> »'i!h the requiremenGS of che Secretary.
<br /> {c)No VValver. :f circumstances occur that would perrnit Lender to require immediate payrr�ent in falt, but L,ender
<br /> �oes not reyuire such payments,L.ender does not waiva iGs rights with respect to subsequent evenGs.
<br /> (d� Regvtatiorys of HIJD Secretary. In man}�circumskances regulations issued by the Secretssry will limit i...ender's
<br /> rights, in the case of payment defaults, to require immediate payment in full and foreclose if not paid. This
<br /> Securiry lnstrument does not authorize acceleration or toreclosure if not permitted by reguladons of the Secretary.
<br /> (c) i�lort�age Not Insured, BoROwer agrees that shau:d this Security Instrvment and the note secured thereby not
<br /> be eligible for insura��ce ender the Nation�l Housing��ct within $ mpnths from the
<br /> date hereof, L.ende*inay, at its option and no:wid�standir�g anything in Paragraph 9, reyaire immedi�te payment in
<br /> fult ot�ail sums secured by this Security Inshvment. A written statement of any authorized agent af the Secretary
<br /> d:,ted subsequent w g �ppn�hs from the date hereof,declining ta insure this Sccurity
<br /> In:trument and ihe r�ote secured thereby, shali be deemed conclusive proot of such ineligibility. Notwithstanding
<br /> the fore�;oint, this option may not be exercisecl b}� Lender when the unavaila�ility of insurance is salely due to
<br /> Lender's failure to remit a mortgage insurance p.*em.ium to the Secrr��ry.
<br /> lU. Reinstatement. Bonower has a rigi�t to be reinsGited if L,ender�as required immediate payment in faq because of
<br /> F3orrower's failiire to pay an amount due under the Note or this Security Instnnnent. This right npplies even after foreclo�ure
<br /> pcoceedings are instituted. To reinstate U�e Securitv lnstrun.�ent,Borr�wer shall tender in a lump sum all amoun��required to
<br /> bring Borrower's account current including, ro the extent chey are abligations of Borrower under this Securiry lnswment,
<br /> Foredosure coscz and reasonatale and customary attorneys' fees and expenses properly associated �vith the foreclosure
<br /> proceedin�,. Upon reinstatement by Borrower, this Securiry Instrument a�id the obligations that it secures shall remain in
<br /> effect as if Lender had not required immediate paymer�t in f'ul;. However,�.ender is not required to permit reinstutement if:
<br /> (i) Lender has nr.cepted reinstatement after the commer,�cement of forr.closure prnceedings within two years immediately
<br /> preceding the commencement of a current foreclosure �raceeding, (ii) reirtsiatement will preclude foreclosure on different
<br /> grounds in the future, or (iii) reinstatement will adverse;ly affect the priority of the lien cremFttted by this Security Instrument.
<br /> 11. BocrowPr Not Released; Forbearance 6} Lender Not a Waiver. Extenciau of the time of payment or
<br /> modification �i amortization oF the sums secured by this Security Instru�nent granted by L.ender to any successr�r �n interest
<br /> of Bo,-rower shall not opera:e to release the liability c�f the original Borrower or $onower's successor in interest. L,ender
<br /> shall not be required to commenc� proceedings agau�st any successor in interest or refuse ro extend time for payment or
<br /> otherevise modify amortization of the sums secured by this Security Instrument by reason af any demand made by the
<br /> ori�inal Borroa�er or Borrower's successors in intere.sG Any forbet►rar►ce Isy L,ender in exereisin�; any right or remedy shaJl
<br /> not be a waiver of or preclude the exercise of any rigl,tt or remedy:
<br /> 12. Surcesso:s and Assigns Bound;Jointand Severa)L�billty;Co-Signers. 'Ihe�ovenan�s and agreements of this
<br /> Security lustrument shatl bind and benetit the successors and assigns of I.cnder and Borrower, subject to the provisions of
<br /> Paragraph 9(b). Bon-ower's covenants and agreements shall be joint and`several. Any Borrower who casigns this Stcurity
<br /> Instn�;nent but does not execute the Note: (a) is cu-signing this Security Instrument onl�+ to mortgage,grunt antl convey that
<br /> Borrower's interest in the f'roperty un�er the terms of this Security Instrument,(b)is nof personally obligat�c'.to pay die sums
<br /> sccu�ed by this Security Instrument;and (c)agreers 4tiat Lender and any other Borrower muy agree to extend, modify, forbe��r
<br /> or malce any accommodations with regard tq �e terms of this Se�urity Instrument or the Note without thut Borrowe�s
<br /> cansent.
<br /> Y3. Notices. Any notice to Borro�vet prc,videc.+ For in this Securiry Tnstrument shal! be given by delivering it or by
<br /> . mailing it by first ciass mail uniess applicable luw r�;quires use of another method. The notice shall be directe�l to the
<br /> Property Address or any other address Borrower designfltes by notice to Lender:,,!�ny nodce to Lender shall be given by iirst
<br /> cluss mail to I.ender's :iddress stated herein nr any uddress L.ender designates by nodce ta Borrower. Any notiec provided
<br /> £ar irt tt�is Securiry Inswment shalt be deemed to have bcen given to Borrower or Lx,nder when given �.s provideci in ttiis
<br /> paragruph.
<br /> � 14. Gaverning Lnw; Severabilrty. T;iis Security Instrument shall be governed b� Federal law and the la�v ot' the
<br /> jurisdiction in which the Froperty is loc��ted. fin the event that any provision o�clause of this Security Instnrment or the Note
<br /> confl'sces with appficuble Inw,such conflict shall not affect other provisions of this Seeuriey Insttvment or the Note which can
<br /> be given eCfect without die conflicdng F�rovision. 'fo this end the provisions of rhis Securiry lnstrumer�t and d�e Note are
<br /> declared ta be severable.
<br /> 15. �orrower's Copy. �orrower shalV be given onc:�confortned copy of this Security lnstrument.
<br /> 16. Assignment of RenGs. Borrow�r unconc'i6onally assigns and transferti ro L,ender all the rents and revenues of the
<br /> Prop�rty. Borrower author.zes �ender or L,ender's pgents to collsct the rents and revenues and hereby direc�s each cenant of
<br /> the Property to pay the rents to Lender or L,cnder's agen�s. However, prior to Lender's notice to Bocrower of Borrower's
<br /> breach of any covenant or�grecment in th�Se.curity Instevment, Borrower shall collect nnd receive ull rents nnd nvenues of
<br /> the Praperty as trustee for the bene�t of L.ender and Borrowcr: 'Ihis acsignment of rents constitutes an absolute assignment
<br /> and not an�.ssignment for addit:onal securir�only,
<br /> !f Lencier�ives notiee of breuch to ,�Borrower. (a) nl! rents received by Borrawer shall tr helc� by Borrower as trustee
<br /> for ben�:fit of' Lender only, to be appliul to the sums �ecured by the Security instrument (b) Lender shall be entitleci to
<br /> collect and recei�-e ul! oF the rents of the Property; ruid (c) ench tenant of the I'rc�perty shull puy a11 rents duc and unpaid to
<br /> I.encter crr L.ender's agent on Lender's writtan demnnd to the tenant.
<br /> E3orrowcr has n�t exccuted any prior acsignment of the rents and hag not and will not perform ztny act that wou(d
<br /> prevent L.endcr frc�rn exercising its rights ur�der:his PAragr�pl� 16.
<br /> L.endcr sht�ll nut be required tc, ent�r ��pan, Gilce c�ntrol of or ma'snutin r5ie Property before or after giving nodce of
<br /> brcach to Borrower. tlowever, Londer or A judiciully a�pointed rcceiver mny do so at an�r time thrre is u breurh. Any
<br /> applic:iuon of re.neK shall ne��.cure or waive any defnult or invalidate any other right or remecfy of Lender. This ussigrnment of
<br /> renGS af thr,Property shnll t�:rrninat�whr;n thc debt secured by Ehe Security Instrurnent is paid in fu1L
<br /> (Pags 3 oj4 puge.rJ , -
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