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<br />Uniess L,ender and Borrower otherwise agree in writiug, 'any application of proceeds to principal shall not extend
<br />or postpone the due date of tlie payments referred to in tlie 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 Acceleratiou; Remedies, the Property is acquired by L,ender, Barrower'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 Loau Application; Leaseholds.
<br />Bonower shall not destroy, damage or impair the Property, allow the Property to deferiorate, or commit waste on
<br />the Properry. Borrower shall be in default if airy forfeiture action or proceeding, wl�ether civil or criminal, is begun
<br />that in Lender's good faith judgment could result in farfeiture of the Property or otherwise materially impair the
<br />lien created �by this Security Instrument ar�Lender's secarity uiterest. Borrower� may cure such a default and
<br />reinstate, as provided in section titled Borrower's Riglit to Reinstate, by causit�� the action or proceeding to be
<br />dismissed with a ruling that, in Lender's good faith determination, precludes farfeiture of the Borrower's interest in
<br />the Property or other material impairtnent of the lien created by this Security Instrument ar Lender's security
<br />interest. Borrower shall also be in default if Borrower, during the loan application process, gave tnaterially false or
<br />inaccurate information or staCements to Lender (or failed to provide Lender with any material information) in
<br />connection with the loan evidenced by the Note. lf this Security Instrument is on a leasehold, Borrower sha11
<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 perfonn the covenants and agreements
<br />contained in this Securiry 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 farfeiture 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 priarity
<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 />A�ry amounts disbursed by Lender under this section shall become additional debt of Borrower secured by this
<br />Securiry 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 iusurance in effect. If, for
<br />any reason, the martgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall
<br />pay the premiums required to obtain cov�rage substantially equivalent to the mortgage insurailce previously in
<br />effect, at a cost substantially equivalent to the cost to Borrower af 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 aloss reserve in lieu of mortgage insurance. Loss reserve payments
<br />may no longer be required, at the option of Lender, if mortgage insurance covera�e (in tlie amount and for tlie
<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 />lnspection. 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 condeinnation, 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 exeess paid to Borrower. In tlie event of a partial taking of the
<br />Property in which the fair inarket 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 t�ie 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 follawing fraction: (a) the total amount of the sums secured iinmediately before flie
<br />taking, divided by (b) the fair inarket 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 tlie fair market value of the Property
<br />immediately before the taking is less than the amount of the sums secured imn�ediately before the taking, unless
<br />Borrower and Lender otherwise agree in writing or uuless Applicable Law otherwise provides, the procEeds shall
<br />be applied to the sums secured by this Security InstrumenC whether or not the sums are then due:
<br />If the Property is abaiidoned 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 witbin the xninimum tlumber 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 />Cc� 2004-2010 Corripliance Systems, Ine. ELOB-751)9 - 2010.03.37R . . � � � �
<br />Consumer Real Estate- Security l��shvment DL2036 Page 3 of 6 �� ' waa.compliancesystetns.com
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