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<br />200602264
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<br />Instrument or to enforcc laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropriate to protcct Lcndcr's interest in the Property and
<br />rights under this Security Instrument, including protecting and/or asscssing the value of the Property,
<br />and securing and/or rcpairing thc Property. Lender's actions can include, but are not limited to: (a)
<br />paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in
<br />court; and (c) paying Reasonable Attorneys' Fees to protect its interest in the Property and/or rights
<br />under this Security Instrument, including its secured position in a bankruptcy procccding. Securing thc
<br />Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or
<br />board up doors and windows, drain water from pipes, eliminate building or other code violations or
<br />dangerous conditions, and have utilities turned on or off. Although Lender may take action under this
<br />Section 8, Lender does not have to do so and is not under any duty or obligation to do so. Tt is agreed
<br />that Lender incurs no liability for not taking any or all actions authorized under this Scction 8.
<br />Any amounts disbursed by Lcndcr under this Section 8 shall become additional debt of Borrower
<br />secured by this Security Instrument. These amounts shall bear interest at thc Note rate from the date of
<br />disbursement and shall be payable, with such intcrcst, upon notice from Lender to Borrower requesting
<br />payment.
<br />If this Security Instrument is on a leasehold, Borrower sha1l comply with all the provisions of the
<br />lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless
<br />Lender agrees to the merger in writing.
<br />9. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are
<br />hereby assigned to and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds sha1l be applied to restoration or repair of
<br />the Property, if the restoration or repair is economica1ly feasible and Lcndcr's security is not lessened.
<br />During such repair and restoration period, Lender shall have the right to hold such Miscellaneous
<br />Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been
<br />completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender
<br />may pay for the repairs and restoration in a single disburscmcnt or in a series of progress payments as
<br />the work is completed. Unlcss an agreement is made in writing or Applicablc Law requires interest to be
<br />paid on such Misccllaneous Proceeds, Lender sha1l not be required to pay Borrower any interest or
<br />carnings on such Misce1laneous Proceeds. If thc restoration or repair is not economically fcasible or
<br />Lender's security would be lessened, the Miscellaneous Proceeds shall be applicd to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such
<br />Misce1laneous Proceeds shall be applied in the order provided for in Scction 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous
<br />Proceeds sha1l be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />the excess, if any, paid to Borrowcr.
<br />In the event of a partial taking, dcstruction, or loss in value of the Property in which the fair market
<br />value of the Property immediately before the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums sccurcd by this Security Instrument immediatcly before the partial
<br />taking, destruction, or loss in value, unlcss Borrower and Lender otherwise agree in writing, the sums
<br />secured by this Security Instrument sha1l be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the fo1lowing fraction: (a) thc total amount of the sums secured immediately bcforc thc
<br />partial taking, destruction, or loss in value divided by (b) the fair market value of the Property
<br />immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to
<br />Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market
<br />value of the ProperLy immediately before the partial taking, destmction, or loss in value is less than the
<br />amount of the sums secured immediately before the partial taking, destmction, or loss in value.. unless
<br />Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall bc applied to the
<br />sums secured by this Security Instrument whether or not the sums arc then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party (as defined in the next sentence) offers to make an award to setlle a claim for damages,
<br />Borrower fails to respond to Lender within 30 days ilfter the date the notice is given, Lender is
<br />authorized to colleel and apply the Misee1laneous Proceeds either to restoration or repair of the Property
<br />or to the sums sceured by this Security Instrument, whether or not then due. "Opposing Party" means the
<br />third party that owes Borrower Miscellaneous Proceeds or Lhe party against whom Borrower has a right
<br />of action in regard LO Miscellaneous Procceds.
<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
<br />interest in the Property or rights under this Security Instrument. Borrower can cure such a dcfault and, if
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<br />111111111I11111111111111111111111111111I1111I11111
<br />35586733
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<br />Pago 5 of 10
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<br />NE.:Z040.060S
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