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7. Protection of Lender's Rights in the Property. if sorrower taiis to perform tne covenants and agreements � .
<br /> contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as
<br /> a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for �
<br /> whatever is necessary to protect the value o( the Property and Lender's rights in the Property. Lender's actions may include payhg �
<br /> any sums secured by a lien wh�h has priorky over this Securky �nstrument, appearing in court, paying reasonable attomey's fees and f
<br /> entering on the Property to make repairs. Akhough Lender may take action under this paragraph 7, Lender does not have to do so.
<br /> My amounts disbursed by Lender under this paragraph 7 shall become addkional debt of BoROwer secured by this Security �"'1'
<br /> Instrument. Unless Borrower and Lende� agree to other terms of payment, these amounts shail bear interest nom the date of Q
<br /> disbursement at the Note rate and shall be payable, wkh interest, upon notice from Lender to Bonower requesting payment. �
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the toan secured by this Security
<br /> Instrument, Borrower shall pay the premiums requhed to maintain the mortgage insurance in effect. If, for any reason, the mortgage �
<br /> insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage W
<br /> substantialty equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borcower of the
<br /> mortgage insurance previously in effect, from an aRemate mortgage insurer approved by Lender. If substantially equivalent mortgage
<br /> insurance coverage is not available, Borrower shall pay to Lender each month a sum equat to one-twelkh of the yearly mortgage
<br /> insurance premium being paid by Borrower when the insurance coverage Iapsed or ceased to be in effect. Lender will accept, use and
<br /> retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the
<br /> optfon of Lender, H mortgage insurance coverage (� the amount and for the period that Lender requires) provided by an �surer
<br /> approved by Lender again becomes available and is obta&�ed. Borrower shail pay the premiums required to maintain mortgage
<br /> rc�surance in effect, or to provide a loss reserve, until the requkement for mortgage hsurance ends in accordance wkh any written
<br /> agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or ks agent may make reasonable entries upon and fnspections of the Property. Lender shall gfve
<br /> Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim tor damages, direct or consequentfal, in connection with any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu ot condemnation, are hereby assigned and shall be
<br /> 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,
<br /> whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fak market
<br /> value of the Property immediately before the taking is equal to or g�eater than the emount of the sums secured by this Security
<br /> Instrument immediately before the taking, unless Borrower 8nd Lender otherwise agree in wrking, the sums seCUred by this Security
<br /> Instrument shall be reduced by the amount of the proceeds muftiplied by the followtng fraction: (a) the total amount of the sums
<br /> secured immediately before the taking, divided by (b) the fak market value of the Property immediately before the taking. Any balance
<br /> shall be paid to Borrower. In the event of a partial taking of the Property in wh�h the fair maricet value of the Property immediately
<br /> before the taking is less than the amount of the sums secured immediately before the taking, unless BoROwer and Lender otherwise
<br /> agree in writing or unless applicable taw othervvise provides, the proceeds shall be applied to the sums secured by this Security
<br /> Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after not�ce 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 aRer the date the notice is given, Lender is suthorized
<br /> to collect and apply the 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 /> Unless Lender and Borrower otherwise agree in writing, 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. Extension or tne cime ror payment or
<br /> modification of amortization of the sums secured by this Securky Instrument granted by Lender to any successor in interest ot Borcower
<br /> shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to
<br /> commence proceedings against any successor in interest or refuse to extend time for payment or othervvise modify amortization of the
<br /> sums secured by this Security Instrument by reason of any demand made by the original BoROwer or Borrower's successors in
<br /> interest. Any forbearance by lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. Tne covenancs and
<br /> agreements of this Security Instrument shall bind and benefit the successors and essigns of Lender and BoROwer, subject to the
<br /> provisions of paragraph 17. BoROwer's covenants and agreements shall be joint and several. My Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Securky Instrument oniy to mortgage, grant, and co�vey that
<br /> Borrower's interest in the Property under the terms of this Security Instrument; (b) fs not personally obligated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other BoROwer may agree to extend, modffy, forbear or make any
<br /> accommodations with regard to terms of this Security Instrument or the Note without that Borrower'S Consent.
<br /> 13. Loan Charges. If the loan secured by this Securky Instrument is subject to a law which sets maximum loan charges,
<br /> and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with 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 BoROwer whkh exceeded permitted limks 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
<br /> refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note.
<br /> 14. NOtIC@S. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it 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 first class mail to Lenders address
<br /> stated herein or any other address Lender designates by notice to Bonower. Any notfce provided for in this SecurRy 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 provision or clause of this Security Instrument or the Note conflicts
<br /> with applicable law, such conflict shall not aHect other provisions of this Security Instrument or the Note which can be given effect
<br /> without the conilicting 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 con(ormed copy of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. if an or any part ot tne Property or any
<br /> interest in it is sold or transferred (or 'rf a beneficial interest in Bonower is sold or transfeRed and Borrower is not a naturai person)
<br /> without Lender's prior written consent, Lender may, at its option, require immediate payment in full of ail sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender if exercise is proh�ited by federal Iaw as of the date of this Security
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less
<br /> than 30 days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security
<br /> Instrument. If BoROwer fails to pay these sums prior to the axpiration of this period, Lender may tnvoke any remedies permitted by thfs
<br /> Securfty Instrument without further notice or demand on BOrfOWBf. Form 3028 9/90
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