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7. Protection of Lender's Rights in the Property. it eorrower fails to perform che covenants and agreeme�ts
<br /> contained in this Security Instrument, or there is a legal proceeding that mey significantly affect Lender's rights fn the Property (such as
<br /> a proceedin� in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulatbns), then Lender may do and pey for
<br /> whatever is necessary to protect the value of the Property and Lender's rights fn the Property. Lender's actions may hclude paying
<br /> any sums secured by a lien wh�h has priority over this Security Instrument, appearhg in court, peying reasonable attomey's fees and� ,
<br /> entering on the Property to make repaks. Although 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 additbnal debt of BoROwer 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, wkh interest, upon notice irom Lender to Borrower requesting payment. �"'
<br /> 8. Mortgage Inaurance. If Lender required mortgage insurance as e condRbn of making the foan secured by this SecurityN
<br /> Instniment, Borrower shall pay the premiums required to maintain the mortgage fnsurance in effect. If, for any reason, the mortgage(�
<br /> insurance coverage requked by Lender lapses or ceases to be in effect, Bortower shall pay the premiums required to obtain coverageMi
<br /> substantialy equNalent to the mortgage insurflnce prevbusly in e(fect, at a cost substantiely equivalent b the cost to Borrower of the Q
<br /> mortgage insurance prevbusy in effect, from an eftemate mortgage insurer approved by Lender. If substantially equivalent mortgege
<br /> insurance coverage is not available, BoROwer shall pay to Lender each month a sum equal to one-tweNth o} 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 required, at the
<br /> option of Lender, H mortga�e insurance coverage (in the amount and for the perbd that lender requfres) provided by an insurer
<br /> approved by Lender again becomes avafleble and is obtained. Borrower ahaA pay the premiums required to maintain mortgege
<br /> hsurance in effect, or to provide a loss reserve, unt8 the requkement br moRflaqe hsurance ends in accordance wfth any written
<br /> agreement between BoROwer and Lender or applicable lew.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall pive
<br /> BoROwer notbe at the time of or prior to an inspection specRying reasonable cause for the Inspection.
<br /> 10. Condemnation. The proceeds oi any award or clakn for damages, dkect or consequential, In connectlon wfth any
<br /> condemnation or other takhg of any part of the Property, or br conveyance h Ileu of condemnatbn, are hereby assfpned and shall be
<br /> paid to Lender.
<br /> In the event of a total takhg of the Property, the proceeds shall be epplied to the sums secured by this Securky Instrument,
<br /> whether or not then due, with any excess pald to Borrower. In the event of a partial taking of the Property in whbh the fair market
<br /> value of the PropeRy immediately before the takinp is equal to or preater than the amount of the sums secured by this Security
<br /> Instrument immediately before the taking, untess Borrower and Lender otherwise apree in wrRinp, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds muRiplied by the foliowing fraction: (a) the tot41 amount of the sums
<br /> secured immedietely before the taking, dNided by (b) the fak market value of the Property immedietely before the taking. My balance
<br /> shall be paid to BoROwer. In the event of a partial taking of the Property In wh�h the fak market value of the Prope�ty Mnmedietely
<br /> before the taking is less than the amount of the sums secured knmediately before the takhg, unless Borrower and Le�der othervvise
<br /> agree in writing or unless applicable law otherwise provides, the proceeds shall be appiied to the sums secured by this SecurRy
<br /> Instrument whether or not the sums are then due.
<br /> It the Property is abandoned by Bonower, or H, after notice by Lender to Bonower that the condemnor offers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender wkhin 30 days aRer the date the not�e is gNen, Lender is authorized
<br /> to coliect and appy the proceeds, at ks option, ekher to restoration or repaM of the Property or to the sums secured by thfs SecurRy
<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 refened 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 ot cne c�me ror paymenc or
<br /> mod'rfication of amortization of the sums secured by this Securiry Instrument granted by Lender to any successor (n interest of BoROwer
<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 otherwise modify amortizatbn of the
<br /> sums secured by this Security Instrument by reason of any demand made by the original Bonower or Borrowe�'s successors (n
<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 co�enancs and
<br /> agreements of this Securky Instn�ment shall bind and benefit the successors and assigns of Lender and BoROwer, subject to the
<br /> provisions of paragraph 17. Borrowers covenants and agreements shall be joht and several. Any Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant, and convey that
<br /> Borrower's interest in the Property under the terms of this Securky Instrument; (b) is not personaily obligated to pay the sums secured
<br /> by this Security Instrumenh, and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any
<br /> accommodatlons with regard to terms of this Securky Instrument or the Note wkhout thet Borrower's consent.
<br /> 13. Loan Charges. If the loen secured by this Security Instrument is subject to a lew whfch sets ma�cimum loan charges,
<br /> and that law is finaly interpreted so that the interest or other loan cherges collected or to be collected In connection wkh the ban
<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 which exceeded permitted limks wiil 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 Bonower. If a
<br /> re(und reduces principel, the reduction will be treated as a partial prepayment without any prepeyment charge under the Note.
<br /> 14. Notices. My notice to Borrower provided for h this Securky Instrument shall be given by delivering it or by mailing it by
<br /> tirst cless mail unless applicabie law requires use of another method. The notbe shall be directed to the Property Address or any
<br /> other address Borrower designates by notice to Lender. My nottce to Lender shall be gNen by first class mail b Lender's address
<br /> stated herein or any other address Lender designates by not�Ce to Borrower. Any notice provided br 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; Severabtlity. This Securky Instrument shall be govemed by federal law and the law of the
<br /> jurisdictlon in which the Property is tocated. In the event that any proviston or clause of this Securky Instrument or the Note conflicts
<br /> with applicable law, such contlict shall not affect other provisfons of this Security Instrument or the Note wh�h can be given effect
<br /> without the conflicting provision. To this end the provisions o( this Security Instrument and the Note are declared to be severable.
<br /> 16. Borrower'8 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 au or any pan ot cne Property or any
<br /> interest in it is sold or transferred (or if a beneficial tnterest in BoROwer is sold or transfened and Borrower is not a natural person)
<br /> without Lender's prtor wr�ten consent, Lender may, at Rs option, require immediate payment in tull of all sums secured by this Security
<br /> Instrument. However, this option shaii not be exercised by Lender if exercise is prohibited by federal law as of the date of this Securky
<br /> Instrument.
<br /> If Lender exercises this option, Lender shall g(ve Borrower notke of acceleration. The notice shall provide e period of not less
<br /> than 30 days from the date the notice is delivered or mailed wRhin which the Borrower must pay ell sums secured by this Securtty
<br /> Instrument. If Borrower fails to pay these sums prior to the expi�ation of this perbd, Lender may hvoke any remedies permitted by this
<br /> Security instrument without (urther notice or demand on Borrower. Form 3oze e/eo
<br /> F1029.LM0 (10/97) Page 3 ot 5
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