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7. Protectfon of Lender's Rights in the Property. it eorrower f8ils �o perform tne co�er,ancs a�d agreements
<br /> cnntained in this Securky Instrument, or there is a legal proceeding that may siOnNicanty effect Lender's rights in the Property (such as
<br /> a proceeding,� bankruptcy, probate, for condemnation or forfeRure or to enforce laws or regulatbns), then Lender may do and pay for
<br /> whatrever is necessary to protect the value of the PropeRy and Lender's rights in the Property. Lender's actions may include paying
<br /> any sums secured by a lien which has priority over this SecurRy Instrument, appearing tn court, paytng reasonable attomey's (ees and
<br /> entering on the Property to make repaks. ARhough Lender may take action under th(s parapraph 7, Lender does not have to do so. (,�
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become addkional debt of Borrower secured by this Securky �Q
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amou�ts shall bear interest from the date of �
<br /> disbursement at the Note rate and shall be payable, with interest, upon notice irom Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurence as a condition of making the loan secured by this Security �
<br /> �nstrument, Borrower shall pay the premiums requked to maintain the mortgage insurance (n eHect. If, for any reason, the mortgage �
<br /> insurance coverage required by Lender lepses or ceases to be in effect, Borrower shall pay the premk�ms required to obtein coverage
<br /> substantialy equivelent to the mortgage insurance previousy in effect, at a cost substantialy equNalent to the cost to Borrower of the �
<br /> mortgage insurance previously h eHect, from an aRemate mortgage insurer approved by Lender. If substantially equivalent mortgage 1�
<br /> insurance coverage is not avallable, BoROwer shall pay to Lender each month a sum equal to one-tweNth of the yearly mortgage
<br /> �surance premium being paid by Borrower when the �surance coverage lapsed or ceased to be tn effect. Lender wiil accept, use and
<br /> retain these payments as a loss reserve fn Ileu of mortgage fnsurance. Loss reserve payments may no longe� be requked, at the
<br /> option of Lender, K mortgaye tnsurance coverage (h the amount and for the perbd that Lender requkes) provided by an insurer
<br /> approved by Lender agah becomes available and (s obteined. Borrower shall pay the premiums requked to mahtah mortgage
<br /> insurance in etiect, or to provide a bss reserve, until the requkement for mortpape Insurence ends in accordance wkh any writt�
<br /> a9reement between Borrower and Lender or appltcable law.
<br /> 9. Inspection. Lender or fts agent may make reesonable entries upon and inspections of the Property. Lender shall give
<br /> Borrower notice at the time of or prtor to an inspection specHying reasonable cause for the fnspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection wkh any
<br /> condemnation or other taking of any part of the Property, or for conveyance in Iieu of condemnatbn, are hereby assipned and shall be
<br /> paid to Lender.
<br /> In the event of a totai tak�g oi 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 BoROwer. In the event of a partial taking of the Property In which the }ak 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 Bonower and Lender otherwise agrse fi writing, the sums secured by this Securky
<br /> Instrument shall be reduced by the amount of the proceeds muRiplied by the followfng iraction: (a) the total amount ot the sums
<br /> secured immediately before the taking, divided by (b) the fair market value ot 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 iak market value o} the Property knmedfately
<br /> before the taking is less than the amount of the sums secured immediately before the taking, un�ess Borrower and lender otherwise
<br /> agree in writing or unless applicable law otherwise provides, the proceeds shaA be applfed to the sums secured by this Secur$y
<br /> Instrument whether or not the sums are then due.
<br /> If the Property (s abandoned by Borrower, or H, after notice by Lender to Borcower that the condemnor oHers to make an award or
<br /> settle a claim for damages, BoROwer fails to respond to Lender withh 30 days after the date the notice is gNen, Lender is authorized
<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 fn 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 of tne c�me ror payment or
<br /> modffication of amortization of the sums secured by this Security Instn�ment granted by Lender to any successor in interest of Borcower
<br /> shall not operate to release the Ilability of the original BoROwer or Borrowers successors in hterest. Lender shall �ot be required to
<br /> commence proceedings against any successor in interest or refuse to extend time (or payment or otherwise modity amortization of the
<br /> sums secured by this Securky Instrument by reason of any demand made by the original Borrower or Borrowers successors in
<br /> interest. Any forbearance by Lender in exercising any right or remedy shall not be a waNer of or preclude the exercise of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liabiltty; Co-signers. The covenants and
<br /> agreements of this Security Instrument shall bind and benefk the successors and assigns ot Lender and BoROwer, subject to the
<br /> provisions of paragraph 17. Borrower's covenants and agreements shall be joint 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 ot this Security Instrument; (b) is not personatly obUgated to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any
<br /> accommodations with regard to terms of this Security Instrument or the Note without that BoROwer's consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a tew which sets maximum loan charges,
<br /> and that law is finally interpreted so that the interest or other loan charges collected or to be coilected in connection wkh 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 limk; and (b) any sums already collected f�om Borrower which exceeded permRted limks will be retunded to BoROwer. Lender
<br /> may choose to make this re(und by reducing the principai owed under the Note or by making a d�ect payment to Borrower. It e
<br /> re(und 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 Securky Instrument shali be given by deflverfng k or by mailing it 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 Bonower designates by notice to Lender. Any notice to Lender shall be given by first cless mail to Lender's address
<br /> stated herein or any other address Lender designates by notice to Borrower. My notice provided for in this Securky Instrument shall
<br /> be deemed to have been given to Borrower or Lender when given as provided 'm this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument shall be govemed by federal law and the law o( the
<br /> jurisdlction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts
<br /> W�h aPP�icebie law, such conflict shali not affect other provfsions of this Securky Instrument or the Note wh�h can be given eHect
<br /> wkhout 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. Borcower shall be given one conformed copy oi the Note and of this Securky Instniment.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. it au or any part or the Propercy or any
<br /> interest in it is sold or transferred (or if a beneficial interest in BoROwer is so�d or transferred and Borrower is not a naturai person)
<br /> without Lender's prior written consent, Lender may, at ks option, require immediate payment in fuii of ail sums secured by this Security
<br /> Instrument. However, this option shall not be exercised by Lender ff exercise is proh�ited by federal Igw as of the date of thfs Security
<br /> Instrument.
<br /> ff Lender exercises this optlon, Lender shali give BoROwer 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 wkh(n which the Borrower must pay all sums secured by this Securky
<br /> Instrument. It Borrower fails to pay these sums prior to the expi�atbn of this peripd, Lend� rr�y ir��oke any remedies permitted by thfs
<br /> Security Instrument without (urther �otice or demand on BoROwer.
<br /> F1029.LM0 (10/97) Form 302! 9/90
<br /> Pap� 3 of 5
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