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<br />7. Protection of Lender's Rights in the Property. If Borrower fails to Perform the covenants and agreements contained in this
<br />Security Instrument, or there is a legal proceeding that may significantly affect l.,ender's rights in the Property (such as a proceeding in
<br />bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary
<br />to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien,
<br />which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make
<br />repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br />Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at
<br />the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br />Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. if, for any reason, the mortgage
<br />insurance coverage required by Lender lapses nr ceases to be in effect, Borrower shall pay the premiums equivalent to the cost to Borrower
<br />of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage
<br />insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance
<br />premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these
<br />payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may nn longer be required, at the option of Lender, if
<br />mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again
<br />becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage 'insurance in effect, or to provide a loss
<br />reserve, until the requirement for mortgage insurance ends in accordance with any written agreement hetween Borrower and Lender or
<br />applicable law.
<br />9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower
<br />notice at the time of or prier to an inspection specifying reasonable cause for the inspection.
<br />10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation
<br />or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether
<br />or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the
<br />Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately
<br />before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by
<br />the amount of the proceeds 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 Borrower. In the event of a
<br />partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums
<br />secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides,
<br />the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br />if the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or
<br />settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to
<br />collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument,
<br />whether or not then due.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend nr postpone the due
<br />date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br />11. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension. of the time for payment or modification of
<br />amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to
<br />release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings
<br />against any successor in interest 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 or Borrower's successors in interest. Any Forbearance by Lender in
<br />exercising any right or remedy, shall not be a waiver of or preclude the exercise of any right or remedy.
<br />12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security
<br />Instrument shall bind and benefit the successors and assigns of bender and Borrower, subject to the provisions of paragraph 17. Borrower's
<br />covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a)
<br />is co-signing this Security Nnstrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this
<br />Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any
<br />other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security instrument or the
<br />Note without that Borrower's consent.
<br />l3. Loan Charges. If the loan secured by this Security Instrument is subject to a law that sets maximum loan
<br />charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection
<br />with the loan exceed the permitted limits, then. (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the
<br />permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender
<br />may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund
<br />reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note.
<br />14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first
<br />class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address
<br />Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any
<br />other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall he deemed to have been
<br />given to Borrower or Lender when given as provided in this paragraph.
<br />15. Governing Law-, Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in
<br />which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law,
<br />such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting
<br />provision. To this end the provisions of this Security Instrument and the Note are declared to be severable.
<br />16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument.
<br />17. Transfer of the Property or a Beneficial~Interest iu Borrower, if all or any part of the Property or any interest
<br />in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's
<br />prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However,
<br />this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument.
<br />If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than
<br />30 days from the date the notice 1s delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If
<br />Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument
<br />without further notice or demand on Bnrrnwer,
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