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<br />200807187
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<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there
<br />is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under
<br />this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
<br />enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or
<br />regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is
<br />reasonable or appropriate to protect Lender's interest in the Property and rights under this Security
<br />Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing
<br />the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien
<br />which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including
<br />its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to,
<br />entering the Property to make repairs, change locks, replace or board up doors and windows, drain water
<br />from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned
<br />on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not
<br />under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all
<br />actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
<br />secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />If this Security Instrument is on a leasehold, Borrower shall 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 />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason,
<br />the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insurance and Borrower was required to make separately designated payments
<br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain
<br />coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially
<br />equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate
<br />mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not
<br />available, Borrower shall continue to pay to Lender the amount of the separately designated payments that
<br />were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these
<br />payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be
<br />non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
<br />required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
<br />reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires
<br />separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage
<br />Insurance as a condition of making the Loan and Borrower was required to make separately designated
<br />payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's
<br />requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
<br />Lender providing for such termination or until termination is required by Applicable Law. Nothing in this
<br />Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it
<br />may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage
<br />Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may
<br />enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements
<br />are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to
<br />these agreements. These agreements may require the mortgage insurer to make payments using any source
<br />of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage
<br />Insurance premiums).
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<br />.-6INEI (04071.02
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<br />Initials: {!k:1 '~
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<br />paga 8 of 15
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<br />Form 3028 1/01
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