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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 date of the payments referred to in the sections titled Payment of Principal and Interest;
<br /> Late Charges and Funds for Taxes and Insurance or change the amount of the payments. If under the section
<br /> titled Acceleration; Remedies, the Property is acquired by Lender, Borrower's right. to any insurance policies and
<br /> proceeds resulting from damage to the Property prior to the acquisition shall pass to, Lender to the extent of the
<br /> sums secured by this Security Instrument immediately prior to the acquisition.
<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 be
<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 Note. 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 fee
<br /> title shall not merge unless Lender agrees to the merger in writing.
<br /> Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br /> contained in this Security Instrument, or there is a legal proceeding, that 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 the 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.
<br /> Any amounts disbursed by Lender under this section shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
<br /> interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender
<br /> to Borrower requesting payment.
<br /> Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect, If, for
<br /> any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower, shall
<br /> pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in
<br /> effect, .at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,
<br /> from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is
<br /> not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage
<br /> insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender
<br /> will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments
<br /> may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount, and for the
<br /> period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained.
<br /> Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br /> until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower
<br /> and Lender or Applicable Law.
<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.
<br /> Condemnation. The proceeds of any award or claim for 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.
<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 the
<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 secured by this Security Instrument immediately before the taking, unless Borrower and
<br /> Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of
<br /> the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
<br /> taking; divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be
<br /> paid to 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 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
<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.
<br /> © 2004-2010 Compliance Systems, Inc. EEOB-1440 - 2010.03.378
<br /> Consumer Real Estate - Security Instrument DL2036 Page 3 of 6 www.compliancesystems.com
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