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200205823
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
<br />of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the
<br />amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in
<br />value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be
<br />reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of
<br />the suers secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market
<br />value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid
<br />to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
<br />of the Property immediately before the partial taking, dcstructiun, or loss in value is less than the amount of the
<br />sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender
<br />otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument whether or not the sums are then due_ If the Properly is abandoned by Borrower, or if, after notice by
<br />Lender to Borrower that the Opposing Party (as definud in the next sentence) offers to make an award to settle a
<br />claim for damages. Borrower fails to respond to Leader within 30 days after the date the notice is given, Lender is
<br />authorized to collect and apply the MisceI Ianerns Proceeds either to restoration or repair of the Property or to the
<br />sums secured by this Security Instrument, whether or not then due. "Opposing Party' means the third party that
<br />owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to
<br />Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender s judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the
<br />Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has
<br />occurred. reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that,
<br />in Lender's Judgment, precludes forfeiture of the Property or other material impairment offender's interest in the
<br />Propertv or rights under this Security Instrument. The proceeds of any award or claim for damages that are
<br />attributable to the impairment of Lender's interest in the Property are hereby assigned and shall he paid to Lcndcr.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in
<br />the order p osided for in Section 2.
<br />12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension ofthe Bone for payment
<br />ry modification of amortization of the sums secured by this Security Instrummd granted by Lender to Borrower or
<br />any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in
<br />Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of
<br />Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this
<br />Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of
<br />Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's
<br />acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than
<br />the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.
<br />13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower covenants and
<br />agrees that Borrower s obligations and liability shall be joint and several. However, any Borrower who co -signs this
<br />Security Instrument but does not execute the Note (a "co-signer): (a) is co- signing this Security Instrument only to
<br />mortgage grant and convey Lhc co- sine act's interest in the Property under the terms of this Security Instrument, Ho
<br />is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any
<br />other Borrower can agree to extald, modify, forbear or make any accommodations with regard to the terms of this
<br />Security Instrument or Ore Note without the co- signer's consent
<br />Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's
<br />obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's
<br />rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's ohligations and
<br />liability under this Security Instrument unless Lender agrees to such release in writing_ The covenants and
<br />agreements ofthis Security Instranmrt shall bind (except as provided in Section 201 and benefit the successors and
<br />assigns of leader
<br />14. Loan Charges. Lender may charge Borrower fees for services performed in connection with
<br />Borrower's default for the purpose of protecting Lender's interest in the Property and rights under this Security
<br />Instrument, including, but net limited to, attorneys' fees, property inspection and valuation fees. In regard to any
<br />NERIIASRA-- iaelelmly— FannieMVelFrnddk Ni.rl!NIFORMINSTRITI @NT Porn 30281/01
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