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7. Protection of Lender's Rights in the Property. ir sonower ra�is to pertorm tne covenanes and agreements
<br /> contained in this Secur$y 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 i� necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying'
<br /> any sums secured by a lien which has priorfty over this Securky Instrument, appearing in court, paying reasonable attomey's fees and �
<br /> entering on the Property to make repaks. Afthough Lender may take action under this paragreph 7, Lender does not have to do so. �
<br /> Any amounts disbursed by Lender under this paragraph 7 shail become additional debt of Borrower secured by this Security �
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest irom the date of
<br /> disbursement at the Note rate and shall be payable, wfth interest, upon notice from Lender to Borrower requesting payment. �1
<br /> 8. Mortgage Insurance. If Lender requlred mortgage insurance as a condition of making the loan secured by this Securfty �
<br /> Instrument, Borrower shall pay the premiums requked to maintain the mortgaye 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 �
<br /> substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the �
<br /> mortgage insurance previousy in effect, from an altemate mortgage insurer approved by Lender. If substantfelly equivalent mortgage
<br /> insurance coverage is not available, Borrower shall pay to Lender each month a sum equai 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 will accept, use and
<br /> retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be requked, at the
<br /> option of Lender, ff mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an Msurer
<br /> approved by Lender again becomes available and is obtained. Borrower shall pay the premfums required to maintain mortgage
<br /> insurance h effect, or to provide e loss reseroe, untfl the requkement for mortgage insurance ends in accordance with any written
<br /> agreement between BoROwer and Lender or applicable law.
<br /> 9. Inspection. Lender or ks agent may make reasonable entrtes upon end InspeCtions of the Property. Lender shall give
<br /> BoROwer notice at the time of or prior to an inspection specifyiny reasonable cause for the inspectlon.
<br /> 10. Condemnation. The proceeds of any award or clahn for damages, direct or consequential, in connection wkh any
<br /> condemnation or other taking of any part of the Property, or for conveyance in Ileu of Condemnatfon, 8re 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 Securfty Instrument,
<br /> whether or not then due, with any excess paid to Borrower. In the event oi a partial taking of the Property in whkh the fair market
<br /> value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immediately before the taking, unless Borrower and Lender otherwise agree (n wrking, the sums secured by this Security
<br /> Instrument shatl be reduced by the amount of the proceeds multiplied by the following iraction: (a) the total amount ot the sums
<br /> secured immediately before the taking, divided by (b) the fair market value of the Property immedietely before the taking. My balance
<br /> shall be paid to Borrower. In the event of a partiel taking of the Property in which the fak market velue of the Property immediately
<br /> before the taking is less than the amount o( the sums secured immediately before the taking, unless Borrower and Lender otherwise
<br /> agree in writing or unless applicabls law othen�vise 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 'rf, after notice by Lender to BoROwer that the condemnor offers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorfzed
<br /> to collect and apply the proceeds, at Rs option, either to restoration or repair of the Property or to the sums secured by this Securky
<br /> instrument, whether or not then due.
<br /> Unless Lender and Borrower othervvise agree in writing, any application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthly payments refeRed 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 cne �ime tor payment or
<br /> modHication of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Bonower
<br /> shall not operate to release the liability oi the original Borrower or BoROwer'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 o( the
<br /> sums secured by this Security Instrument by reason of any demand made by the original Borrower or BoROwer's successors in
<br /> interest. Any forbearance by Lender in exe�cising any right or remedy shall not be a waiver of or preclude the exercise of any right or
<br /> remedy.
<br /> 72. Successors and Assigns Bound; Joint and Several Liability; Co-signers. rne covenants and
<br /> agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the
<br /> provisions of paragraph 17. Borrower'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 thfs Security instrument only to mortgage, grant, and convey that
<br /> Borrower's interest in the Property under the terms o( this Security Instrument; (b) is not personally obligated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower mey agree to extend, modify, forbear or make any
<br /> accommodations with regard to terms of this Security Instrument or the Note wkhout that Borrower's consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maxfmum 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 /> permftted limit; and (b) any sums already collected irom BoROwer which exceeded permitted Iimks 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 wkhout any prepayment charge under the Note.
<br /> 14. NOtICES. Any notice to Borrower provided for in this Security Instrument shall be given by delivering k or by mailing k 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 BoROwer designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address
<br /> stated herein or any other address Lender designates by notice to Borrower. 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 provision or clause of this Security Instrument or the Note conft�cts
<br /> with applicable law, such conflict shall not affect other provisions of th(s Security Instrument or the Note which can be given effect
<br /> without the conflicting 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 conformed 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 of the Property or any
<br /> interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
<br /> without Lender's prior written consent, Lender may, at its option, require immediate payment in (ull of all sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender H exercise is prohibited by federal law as of the date of this Securky
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shail provide a period of not less
<br /> than 30 days from the date the notice is delivered or mailed wfthin which the Bonower must pay all 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 remedles pem�itted by this
<br /> Security Instrument without further notice or demand on Borrower.
<br /> F702B.LM0 (10/B7) Form 3026 B/90
<br /> Paps 3 of 5
<br /> 845
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