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200602537 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrowerfails to perform the covenants and agreementscontainedin this Security Instrument,(b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/orrights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument,including protectingand/orassessing the value of the Property, and securing and/orrepairing the Property. Lender's actions can include, but are notlimited to: (a) paying any sums secured by a lien which has priority over this Security Instrument;(b) appearing in court; and ( c) paying reasonableattorneys' fees to protect its interestin the Property and I orrights under this Security Instrument,including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrumentis on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiumsrequiredto maintain the Mortgage Insurancein effect. If, for any reason, the Mortgage Insurance coverage requiredby Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lenderthe amount of the separatelydesignatedpayments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of MortgageInsurance.Such loss reserve shall be non-refundable,notwithstandingthe fact that the Loan is ultimately paid in full, and Lender shall not be requiredto pay Borrower any interest or earnings on such loss reserve. Lender can no longer requireloss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lenderrequires )provided by an insurer selected by Lender again be com es available, is obtained, and Lenderrequiresseparatelydesignatedpayments toward the premiumsfor Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiumsrequiredto maintainMortgagelnsurancein effect, or to provide a non-refundableloss reserve, until Lender's requirementfor Mortgage Insurance ends in accordance with any written agreement betweenBorrowerand Lenderproviding for such terminationor until terminationis requiredby Applicable Law. Nothing in this SectioJ?-10 affects Borrower's obligation to pay interest at the rate proyided in ~he Note. MortgageInsurancerermbursesLender (or any entIty that purchases the Note) for certamlosses It may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortga~e Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to bme, and may enterinto agreementswith other parties that share or modify theirrisk, or reducelosses. These agreementsare on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements.These agreementsmay require the mortgageinsurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums) . Initials: ~. 2}. (1. Form 3028 1/01 .-6A(NE) (0407) i:!l Page 8 of 15