|
<br />200710587
<br />
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage," floods and such
<br />other hazards as lender may require and in such amounts and for such periods as lender may require. Unless
<br />lender in writing requires otherwise, the policy shall provide insurance on a replacement cost basis in an amount
<br />not less than that necessary to comply with any coinsurance percentage stipulated in the hazard insurance policy,
<br />and the amount of coverage shall be no less than the Maximum Principal Balance plus the full amount of any lien
<br />which has priority over this Security Instrument.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by lender;
<br />provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall
<br />be in a form acceptable to lender and shall include a standard mortgage clause in favor of and in a form
<br />acceptable to lender. lender shall have the right to hold the policies and renewals thereof, subject to the terms of
<br />any mortgage, deed of trust or other security agreement with a lien which has priority over this Security
<br />Instrument.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and lender. lender may make
<br />proof of loss if not made promptly by Borrower. All insurance proceeds are hereby assigned to lender and shall
<br />be paid to lender to the extent of all sums secured by this Security Instrument, subject to the terms of any
<br />mortgage, deed of trust or security agreement with a lien which has priority over this Security Instrument. Unless
<br />Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restore or repair the
<br />Property, if it is economically feasible to do so.
<br />If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by lender to Borrower that the insurance carrier offers to settle a claim for insurance
<br />benefits, lender is authorized to collect and apply the insurance proceeds at lender's option either to restoration
<br />or repair of the Property or to the sums secured by this Security Instrument.
<br />6. Preservation and Maintenance of Property; leaseholds; Condominiums; Planned Unit Developments.
<br />Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration
<br />of the Property and shall comply with the provisions of any lease if this Security Instrument is on a leasehold. If
<br />this Security Instrument is on a unit in a condominium or a planned unit development, Borrower shall perform all
<br />of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned
<br />unit development, the by-laws and regulations of the condominium or planned unit development, and the
<br />constituent documents.
<br />7. Protection of lender's Security. If Borrower fails to perform the covenants and agreements contained in
<br />this Security Instrument, or if any action or proceeding is commenced which materially affects lender's interest in
<br />the Property, then lender, at lender's option, upon notice to Borrower, may make such appearances, disburse
<br />such sums, including reasonable attorneys' fees, and take such action as is necessary to protect lender's
<br />interest. Any amounts disbursed by Lender pursuant to this paragraph 7, with finance charges thereon, at the
<br />rate provided in the Credit Agreement, shall become additional indebtedness of Borrower secured by this Security
<br />Instrument. Unless Borrower and lender agree to other terms of payment, such amounts shall be payable upon
<br />notice from lender to Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require
<br />Lender to incur any expense or take any action hereunder. Any action taken by lender under this paragraph shall
<br />not cure any breach Borrower may have committed of any covenant or agreement under this Security Instrument.
<br />Borrower agrees that lender is subrogated to all of the rights and remedies of any prior lienor, to the extent of
<br />any payment by lender to such lienor.
<br />8. Inspection. lender may make or cause to be made reasonable entries upon and inspections of the
<br />Property, provided that lender shall give Borrower notice prior to any such inspection specifying reasonable cause
<br />therefor related to lender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condem-
<br />nation, are hereby assigned and shall be paid to lender, to the extent of any indebtedness under the Credit
<br />Agreement, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has
<br />priority over this Security Instrument.
<br />10. Borrower Not Released; Forbearance By lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor
<br />in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and
<br />Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor
<br />or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security
<br />Instrument by reason of any demand made by the original Borrower and Borrower's successors in interest. Any
<br />forbearance by lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall
<br />not be a waiver of or preclude the exercise of any such right or remedy.
<br />11. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements
<br />herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of
<br />Lender and Borrower, subject to the provisions of paragraph 21 hereof. All covenants and agreements of
<br />Borrower shall be joint and several. Any Borrower who co-signs this Security Instrument, but does not execute
<br />the Credit Agreement, (a) is co-signing this Security Instrument only to grant and convey that Borrower's interest
<br />in the Property to Trustee under the terms of this Security Instrument, (b) is not personally liable under the Credit
<br />
<br />11""""
<br />(2C;r
<br />
<br />
<br />FNFqq" flASFR' "R4qll ~~,?nn1
<br />
|