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<br />200708197
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<br />Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on
<br />the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun
<br />that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the
<br />lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and
<br />reinstate, as provided in section titled Borrower's Right to Reinstate, by causing the action or proceeding to bc
<br />dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in
<br />the Property or other material impairment of the lien created by this Security Instrument or Lender's security
<br />interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br />connection with the loan evidenced by the Contract. If this Security Instrument is on a leasehold, Borrower shall
<br />comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fcc
<br />title shall not merge unless Lender agrees to the merger in writing.
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<br />Protection of Lender's Rights in the Propeliy. If Borrower fails to perform the covenants and agreements
<br />contained in this Security Instrument, or there is a legal proceeding tllat may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect tile value of the Property and
<br />Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority
<br />over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to
<br />make repairs. Although Lender may take action under this section, Lender does not have to do so.
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<br />Any amounts disbursed by Lender under this s('x.:tion shall become additional debt of Borrower secured by this
<br />Sa'UI'ity Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
<br />interest from the date of disbursement at the same rate assessed on advances under the Contract and shall be
<br />payable, with interest, upon noticc from Lender to Borrower requesting paymwt.
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<br />Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall
<br />give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
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<br />Condemnation. The proceeds of any award or claim tbr 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
<br />assigned and shall be paid to Lender.
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<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of thc
<br />Property in which the fair market value of the Property immediately before the taking is equal to or greater than
<br />the amount of the sums sa'UI'ed by this Security Instrument shall be reduced by the amount of the proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking,
<br />divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to
<br />Borrower. In the event of a partial taking of the Property in which the fair market value of the Property
<br />immediately before the taking is less than the amount of the sums secured immediately before the taking, unless
<br />Borrower and Lender otherwise agree in writing or unless Applicable Law otherwise provides, the proceeds shall
<br />be applied to the sums secured by this Se<.,wty Instrument whether or not the sums are then due.
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<br />Uthe Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to
<br />make an award or settle a claim for damages, Borrower fails to respond to Lender within the minimum number of
<br />days established by Applicable Law after the date the notice is given, Lender is authorized to collect and apply the
<br />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.
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<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due datc of the payments due under the Contract or change the amount of such payments.
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<br />!:> 2004-2007 CoPl'right Complianco S,.,lotllII, II". 8C9C-AAFF - 2007.01.201
<br />Cm18I.Dl1CfReal Estate - Security IJJi,t~t DL2036
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