|
20110301�
<br />Unless Lender and Borrower othervvise 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 Accelerat3on; 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 ea�ent of the
<br />sums secured by this Security Instrument immediately prior to the acquisition.
<br />Preservatlon, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Bonower shall not destroy, damage or impair the Property, allow the Properly 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 I.ender'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 interesk Borrower may cure such a default and
<br />reinstate, as provided in section titled Borrower's Right to Reinstate, by causixig 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 5ecurity Instrument or Lender's security
<br />interest. Borrower shall also be in default if Bonower, during the loan applicatiott process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material infoimation) in
<br />connection rvith the loan evidenced by the Note. If this 5ecurity Instrument is on a leasehold, Bonower 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 enforca laws or
<br />regulations), then I,ender may do and pay for whatever is necessazy 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 Inst�vment, 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 aznounts disbursed by Lender under this section shall become additional debt of Borrower secused 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 paymen�
<br />Mortg�ge Insurance. If Lender required mortgage insurance as a condition of making tb.e loan secured by this
<br />Security Tnstrument, Bonower shall pay the premiums required to maintain the mortgage insurance in effec� If, for
<br />any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Bonower shall
<br />pay t�e premiums requirad 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, Bortower 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 effec� 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 />Bonower shall pay the premiums required. to ma'vntain 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 Bonrower
<br />and Lender or Applicable La.w.
<br />Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Iznder sha11
<br />give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />Condemnal�on. 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 imznediately 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 tlie following fraction: (a) the total amount of the sums secured immediately before the
<br />taldng, divided by (b) the fair market value of the Property immediately before the taking. Any balance sha11 be
<br />paid to Bonower. In the event of a partial ta]�ing 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 />Bonower and Lender otherwise agree in writing or unless Applicable Law othervvise provides, the proceeds shall
<br />be applied to the sums secured by this Security Instiument whether or not the sums are t.hen due.
<br />If the Properiy is abandoned by Bonower, 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 I.ender within the minunum number of
<br />days established by Applicable Iaw after the date the notice is given, Lender is authorizad 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 5ecurity
<br />Instrument, whether or not then due.
<br />� 2004-2010 Complience Syatema, Inc. EEOB.Cs179 - 2010.03378
<br />Co�umer Real Batate - Security Inetrument DL2036 Pege 3 of 6 www,00mp7isnceyystema,com
<br />
|