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7. Protection of Lender's Rights in the Property. if eoROwer fa�is co pertorm cne covenancs and agreements
<br /> contained in this Security Instrument, or there is a legal proceeding that may signfficantly affect Lenders rights in the Property (such as
<br /> a proceeding in bankruptcy, probate, for condemnation or forfekure or to enforce Iaws or regulations), then Lender may do and pay for
<br /> wFiatever is necessary to protect the va�e of the Property and Lenders rights in the Property. Lender's actbns may include paying
<br /> eny sums secured by a lien which has priortty over this Securky Instrument, eppearing in court, paying reasonable attomey's fees and
<br /> entering on the Property to make repaks. Afthough Lender may take actbn 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 BoROwer secured by this Securiry
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
<br /> disbursement at the Note rate and shall be payable, with hterest, upon notfce (rom Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender requMed mortgage hsurence as a condkion of making the loen secured by this Security
<br /> Instrument, BoROwer shall pay the premiums required to malntain the mortgage tnsurance h eHect. If, (or any reason, the mortgage �
<br /> insurance coverage requked by Lende� lapses or ceases to be tn effect, Borrower shall pay the premiums required to obtain coverage �
<br /> substantialy equivalent to the mortgage insurance previousy in effect, at a cost substantially equNalent to the cost to Borrower ot the '
<br /> mortgage insurance previousy in effect, nom an ak�nate mortgage �surer approved by Lender. If substantialy equNelent moRgage
<br /> insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage
<br /> insurance premium befng paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and �
<br /> retain these payments as a loss reserve h lieu of mortgage insurance. Loss reserve payments may no longer be required, at the �
<br /> option of Lender, if mortgage insurance coverage (in the amount and tor the period thet Lender requires) provided by an insurer N
<br /> approved by Lender egain becomes available end is obtained. BoROwer shall pay the premiums requked to maintah mortgage �
<br /> insurance in effect, or to provide a loss reserve, until the requirement for mortgage hsurance ends in accordance wtth any written �
<br /> agreement between Borrower and Lender or appl�able law. �
<br /> 9. Inspection. Lender or ks agent may make reasonable ent�ies upon and Inspections ot the Property. Lender shall give
<br /> Borrower notice et the time of or prior to an inspectbn speciying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, dh�ect or consequentlal, in connectlon wkh any
<br /> condemnation or other taking of any part of the Property, or for conveyance � tleu of condemnatbn, are hereby assigned and shall be
<br /> paid to Lender.
<br /> In the event of a total taking o( the Property, the proceeds shall be applied to the sums secured by this Securky Instrument,
<br /> whether or not then due, with any excess paid to Borrower. In the event o} a partial taking of the Property in wh�h the fafr market
<br /> value oi the Property �nmediately before the taking ts equat to or greater than the amount ot the sums secured by this Securky
<br /> Instrument immediately before the taking, uniess Borrower and Lender othervvise agree in wrking, the sums secured by this Securfty
<br /> Instrument shall be reduced by the amount of the proceeds muRiplied by the following haction: (a) the total amount of the sums
<br /> secured immediately before the taking, dNided by (b) the }air market value of the Property immediately before the taking. My balence
<br /> shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property (mmediately
<br /> before the taking is less than the amount of the sums secured immedietely before the taking, unless Borrower and lender otherwise
<br /> agree k� writing or unless applicable law othervvise provides, the proceeds shatl be applted to the sums secured by thfs Securiry
<br /> Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or ff, aRer notice by Lender to Borrower that the condemnor offers to make en award or
<br /> settle a claim for damages, Borcower fails to respond to Lender wfthin 30 days aiter the date the notice is given, Lender is authorized
<br /> to collect and apply the proceeds, at Rs opt(on, either to restoration or repair of the Property or to the sums secured by thfs Security
<br /> Instrument, whether or not then due.
<br /> Unless Lender and Bonower otherwise agree in wrking, any application of proceeds to principal shall not extend or postpone the
<br /> due 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. Extenston ot the c�me for payment or
<br /> modHication of amortization of the sums secured by this Securky tnstrument granted by Lender to any successor in interest of Borrower
<br /> shall not operate to release the liability of the original BoROwer or Bonower's successors in interest. Lender shall not be requked to
<br /> commence proceedings against any successor in interest or retuse to extend t'ane for payment or otherwise modify amortization of the
<br /> sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in
<br /> interest. My forbearance by Lender in exercising any right or remedy shall not be a waiver of or preck�de the exercise of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and
<br /> agreements of this Securky Instrument shall bind and benetk the successors and assigns of Lender and BoROwer, subject to the
<br /> provistons oi paragraph 17. Borrower's covenants and agreements shall be joht and severel. My BoROwer who co-signs thts Securky
<br /> Instrument but does not execute the Note: (a) is co-slgning this Security Instrument only to mortgage, grant, and convey that
<br /> Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obiigated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modHy, forbear or make any
<br /> accommodations with regard to terms of this Securky Instrument or the Note without that Bonower's consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges,
<br /> and that law is finatly interpreted so that the interest or other loan charges coliected or to be coliected in connection wtth the loan
<br /> exceed the permitted limits, then; (a) any such loan charges shall be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit; and (b) any sums already collected from Borrower wh�h exceeded pertnkted limks wtll be refunded to Borrower. Lender
<br /> mey choose to make this refund by reduc(ng the principal owed under the Note or by making e direct payment to Borrower. If a
<br /> refund reduces principal, the reduction will be treated as a partial prepaymAnt wfthout any prepayment charge under the Note.
<br /> 14. NOtICeS. Any not�e to Borcower provided for in this Securfty Instrument shall be gNen by delivering R or by mailing ft by
<br /> first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any
<br /> other address Borrower designates by notice to Lender. Any notice to Lender shall be given by f(rst class mail to Lender's address
<br /> stated herein or any other address Lender designates by notice to BoROwer. Any notice provided for in this Security Instrument shall
<br /> be deemed to have been given to Borrower or Lender when given as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall be govemed by federal law and the law of the
<br /> jurisdiction in which the Property is located. In the event that any provtsion or clause of this Security Instrument or the Note conflicts
<br /> with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect
<br /> without the conflicting provision. To this end the provisions of this Securfty 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 Beneflcial Interest in Borrower. If all or any part of the Property or any
<br /> interest in it is sold or transteRed (or if a beneficial interest in BoROwer is sold or transferred and Borrower is not a natural person)
<br /> without Lender's prior written consent, Lender may, at ks option, require immediate payment in full of all sums secured by this Securky
<br /> Instrument. However, this option shall not be exercised by Lender ff exercise is prohibited by federal law as of the date of this Security
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give Bonower notice of acceleration. The notice shall provide a pe�iod of not less
<br /> than 30 days from the date the notice is detivered or mailed within which the Borrower must pay ali sums secured by this Security
<br /> Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies perm�ted by this
<br /> Security Instrument without further notice or demand on Bonow�.
<br /> Form 9026 9/90
<br /> F7029.LMO(�0/e7) PaQs 3 of 5
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