|
7. Protection of Lender's Rights in the Property, if sorrower fails to perforrn tne co�enants and agreements
<br /> contained in this Security Instrument, or there is a legal proceeding that may signfficantly affect Lender's rights in the Property (such es
<br /> a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for (�
<br /> whatev�r is necessary to protect the value oi the Property and Lender's rfphts in the Property. Lender's actions may include paying �
<br /> �any suins secured by a lien which has priorky over this Security Instrument, appearing in court, paying reasonable attomey's fees and �
<br /> entering on the Property to make repairs. ARhough 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 additional debt of Borrower secured by this Securky�
<br /> Instrument. Unless BoROwer and Lender agree to other terms of payme�t, these amounts shall bear interest from the date of �
<br /> disbursement at the Note rate and shall be peyable, wkh interest, upon notice from Lender to Borrower requesting payment. �
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Bonower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage �
<br /> insurance coverage required by Lender lepses or ceases to be in effect, BoROwer shall pay the premiums required to obtain coverage �
<br /> substantially equivafent to the mortgage insurance previousy k► effect, at a cost substantialy equivalent to the cost to Borrower of the
<br /> mortgage insurance previously in eHect, irom an aftemate mortgage insurer approved by Lender. If substantfaly equivalent mortgage
<br /> insurance coverage is not available, Borcower shall pay to Lender each month a sum equal to one-twettth of the yearly mortgage
<br /> insurance premium being paid by BoROwer when the insurance coverage lapsed or ceased to be tn eHect. Lender will accept, use and
<br /> retah these payments as a loss reserve in lieu o( mortgage insurance. Loss reserve payments may no longer be requked, at the
<br /> option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requkes) provtded by an �surer
<br /> approved by Lender again becomes available and is obtained. Borrower shall pay the premiums requMed to maintak� mortgage
<br /> insurance in effect, or to p�ovide a loss reserve, unttl the requirement for mortpage hsurance ends in accordance wkh any wrkten
<br /> agreement between BoROwer and Lender or applfcable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon end inspections of the Property. Lender shall gNe
<br /> BoROwer notice at the time of or prbr to an inspection specHy�p reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any awerd or claim for damages, dkect or consequential, in connection wkh any
<br /> condemnation or other taking of any paR of the Property, or for conveyance in lieu of condemnatbn, are hereby asaigned 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 thls Securky Instrument,
<br /> whether or not then due, wkh any excess paid to Borrower. In the event of a partial taking of the Property in whbh the fair market
<br /> value of the Property immediately be(ore 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 in writing, the sums secured by this SecurRy
<br /> Instrument shall be reduced by the amount of the proceeds mukiplied by the }ollowing fraction: (a) the totai amount of the sums
<br /> secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. My balance
<br /> shall be paid to Borrower. In the event of a partiai taking of the Property in which the fair market value of the Property immediatey
<br /> betore the taking is less than the amount of the sums secured immediatey before the taking, unless Borcower and Lender otherwise
<br /> agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Securky
<br /> Instrument whether or not the sums are then due.
<br /> If the Property (s abandoned by Bonower, or M, 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 wfthln 30 days after the date the notice is given, Lender is authorized
<br /> to collect and apply the proceeds, at its option, ekher to restoration or repa� 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 cne cime ror payment or
<br /> mod'rfication of amortization of the sums secured by this Security �nstrument granted by Lender to any successor in interest of Borrower
<br /> shall not operate to release the liebility of the original Borcower or Borrower's successors tn interest. Lender shall not be requked to
<br /> commence proceedings against any successor � interest or refuse to extend time for payment or otherwise modify amortization of the
<br /> sums secured by this Securky Instrument by reason of any demand made by the original Borrower or Borrower's successors in
<br /> interest. Any forbearance by Lender in exercising any right or remedy shaii 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�enants and
<br /> agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the
<br /> provisions o( paragraph 17. Borcower's covenants and agreements shalt be joint and several. My Borrower who co-signs this Securky
<br /> Instn�ment but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grent, and convey that
<br /> Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured
<br /> by this Security tnstrument; and (c) agrees that Lender and any other BoROwer may agree to extend, modi(y, 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 Iaw 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 wkh the loan
<br /> exceed the permitted limits, then; (a) any such loan charges shail be reduced by the amount necessary to reduce the charge to the
<br /> permitted limit and (b) any sums already collected from Borrower which exceeded permftted limits will be refunded to Borrower. Lender
<br /> may choose to make this refund by reducing the principal owed under the Note or by making fl direct payment to Borrower. If a
<br /> refund reduces principal, the reduction will be treated as a partial prepaymbnt without any prepayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing k by
<br /> tirst class mail unless applicable law requrces use o} another method. The notice shall be dlrected to the Property Address or any
<br /> other address Borrower designates by notice to Lender. Any notice to Lender shall be gNen by tirst class mail to Lenders address
<br /> stated herein or any other address Lender designates by notice to Borcower. Any notice provided for in this Securlty Instrument shall
<br /> be deemed to have been given to Borcowe� or Lender when given as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall be governed by federal lew and the law of the
<br /> jurisdiction in which the Property is �ocated. In the event that any provision or clause of this Security Instrument or the Note conflicts
<br /> with applicable law, such conflict shall not affect other provisions o( this Security Instrument or the Note wh�h can be given eHect
<br /> without the conflicting provision. To this end the provisfons of this Security tnstn�ment and the Note are deciared 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 au or any part ot tne Property or any
<br /> interest in it is sold or transterred (or if a beneficiai 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 shail not be exercised by Lender if exercise is prohibked by federai law as oi 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 (rom the date the notice is delivered or mailed within which the Borrower must pay aii sums secured by this Securky
<br /> Instrument. If Borrower fails to pay these sums prior to the expiration of this period, lender may invoke any remedies permitted by this
<br /> Security Instrument without further notice or demand on Borrower. Form soza e/eo
<br /> Ft029.LM�(10/97) Paps 3 of 5
<br />
|