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_3_ 85-• 005541
<br />to Lender's interest in the Property.
<br />!. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are
<br />hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security
<br />agreement with a lien which has priority over this Mortgage.
<br />10. Borrower Not Released; Forbearance By Leader Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Mortgage granted by Lender to any successor in interest of
<br />Borrower and all other parties who are or thereafter become secondarily liable shall not operate to release, in any
<br />manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to
<br />commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of
<br />the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower's successors in
<br />interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable
<br />law, shall not be a waiver of or preclude the exercise of any such right or remedy.
<br />11. Successors and Assigns Bound; Joist and Several Liability; Co- signers. The covenants and agreements herein
<br />contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and
<br />Borrower, subject to the provisions of paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and
<br />several. Any Borrower who co -signs this Mortgage, but does not execute the Note, (a) is co- signing this Mortgage only to
<br />mortgage, grant and convey that Borrower's interest in the Property to Lender under the terms of this Mortgage, (b) is
<br />not personally liable on the Note or under this Mortgage, and (c) agrees that Lender and any other Borrower hereunder
<br />may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Mortgage or
<br />the Note without that Borrower's consent and without releasing that Borrower or modifying this Mortgage as to that
<br />Borrower's interest in the Property.
<br />12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to
<br />Borrower provided for in this Mortgage shall be given by delivering it or by mailing such notice by certified mail
<br />addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender
<br />as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's address stated herein or to
<br />such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this
<br />Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein.
<br />13. Governing Law; Severability. The state and local laws of the jurisdiction in which the Property is located shall
<br />apply except where such laws conflict with Federal law; in which case. Federal law applies. In the event that any
<br />provision or clause of this Mortgage or the Note conflicts with applicable law, such conflict shall not affect other
<br />provisions of this Mortgage or the Note which can be given effect without the conflicting provision, and to this end the
<br />provisions of this Mortgage and the Note are declared to be severable. As used herein, "costs ", "expenses" and
<br />"attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein.
<br />14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of :his Mortgage, if requested
<br />at the time of execution or after recordation hereof.
<br />15. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home
<br />rehabilitation, improvement, repair or other loan agreement which Borrower enters into with Lender. Lender, at
<br />Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an assignment
<br />of any rights, claims or defenses which Borrower may hase against parties who supply labor, materials or services in
<br />connection with improvements made to the Property.
<br />16. Transfer of the Property. If Borrower sells or transfers all,or any part of ,the Property or an interest therein,
<br />excluding (a) the creation of a lien or encumbrance subordinate to this Mortgage, (b) a transfer by devise, descent, or by
<br />operation of law upon the death of a joint tenant, (c) the grant of any leasehold interest of three years or less not
<br />containing an option to purchase, (d) the creation of a purchase money security interest for household appliances, (e) a
<br />transfer to a relative resulting from the death of a Borrower, (f) a transfer where the spouse or children of the Borrower
<br />become an owner of the property, (g) a transfer resulting from a decree of dissolution of marriage, legal separation
<br />agreement, or from an incidental property settlement agreement, by which the spouse of the Borrower becomes an owner
<br />of the property, (h) a transfer into an inter vivos n ust in which the Borrower is and remains a beneficiary and which does
<br />not relate to a transfer of rights of occupancy in the property, or (i) any other transfer or disposition described in
<br />regulations prescribed by the Federal Home Loan Bank Board, Borrower shall cause to be submitted information
<br />required by Lender to evaluate the transferee as if a new loan were being made to the transferee. Borrower will continue
<br />to be obligated under the Note and this Mortgage unless Lender releases Borrower in writing.
<br />if Lender does not agree to such sale or transfer. Lender may declare all of the sums secured by this Mortgage to be
<br />immediately due and payable. If Lender exercises such option to accelerate. Lender shall mail Borrower notice of
<br />acceleration in accordance with paragraph 12 hereof. Such notice shall provide a period of not less than 30 days from the
<br />date the notice is mailed or delivered within which Borrower may pay the sums declared due. If' Borrower fails to pay
<br />such sums prior to the expiration of such period. Lender may, without further notice of demand on Borrower, invoke
<br />any remedies permitted by paragraph 17 hereof.
<br />NONUNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
<br />17, Acceleration; Remedies. Except as provided in paragraph 16 hereof, or as otherwise required by law, upon
<br />Borrower's breach of toy covenant or agreement of Borrower in this Mortgage, including the covenants to pay by the
<br />end of 10 calendar days after they are due, any sums secured by thin Mortgage, lender prior to acceleration shall give
<br />**life to Borrower as prescribed by applicable law specifying: f 1) the breach; (2) the action required to cure such breach;
<br />(3) a dote, not leas than 20 days from the date the notice is mailed to Bonnwer, by which such breach must be cured; and
<br />(4) that (*Not* to care such breach on or before the date specified In the notice may result in acceleration of the sums
<br />tefd►ed by this Mortgage, foreclosure by Judicial proceeding, find sale of the Property. The notice shall further inform
<br />Borrower of Ike right to reinstate after acceleration and the right to assert in the foreclosure proceeding the nonexistence
<br />of a defwk of any other defense of Borrower to acceleration and foreclosure. If the breach Is not cured on or herore the
<br />dole specified In The notice, Leader, at Leader's option, may declare all of the sums secured by this Mortgage to be
<br />ImonNatfefy doe and psysbte without fortifier demand and may foreclose this Mortgage by Judicial proceeding. Lender
<br />shall be ralifled to collet it such proceeding all vspenses of Foreclosure, including, but not limited tit, reasonable
<br />dforoeyt' fees, sad costs of documentary evidence, abstracts and title reports,
<br />It. i*►rower's Right to Reinstate. Notwuhstandm(t Lender's acceleration or the .urns scutrcd by this Mortgage due
<br />to Borrower's breach, Borrower %half have the right to have anv rtmeedtnjts begun ht 1 ender !„ etttotce 1hts'sfortgage
<br />discontinued at any hme prior to cmry of a judgment enf„rcmtt this kl,,rtgafe tf gal Horto"er r•aw. i ender all sums
<br />which would be then due under this Mortataicc and tike Note had no aCleletiwmi ,N� urrvd, it,) Hof IuNet , urea all bleaches
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