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• 7. Protection of Lender's Rlghts (n the Property. If Bonower talls to perform the covenants end agreements ,.�
<br />� conteined in this Security Instrument, or there is a legel proceeding thet mey algniflcently effect Lender's rights in the Property (auch as ►;
<br /> a proceedtng'in benkruptcy, probete, for condemnaUon or torfefture or to enforce lawa or regulaUons), then Lend� may do and pey for��
<br /> what'�ver la neceaseiry to protect the valus ot the Property and Lender's rights In tha Property. Lender'e sctiona may Mdude peying�
<br /> any sums aecured by a Ilen which has priority over thia 3ecxiriry Inshument, appearing in court, paying r�sonable attomey'a Teea and �
<br /> ente�ing on the Properry to make repairs. Afthough Lender may teke ectlon under this paregraph 7, Lender does not have to do so.
<br /> My amounts disbursed by Lender under this peragreph 7 shall become eddit(onal 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 oi w
<br /> disbursement at the Note rete and shall be payable, with Mterest, upon notice from Lender to Borrower requesU�g peyment. �
<br /> 8. MOrtgage InsurenCe. tf Lender requfred mortgage insurance es a condklon oi making the loan secured by this Security �
<br /> Instrument, Borrower shall pay the premlums requlred to melntein the mortgage Insurance in effect. If, for eny r�son, the mortgage �
<br /> insurance coverege requlred by Lender lapses or ceases to be in effect, Borrower shall pey the premiums required to obtaln coverage
<br /> substantially equivelent to the mortgage inaurance previoualy in effect, at e cost substantially equivalent to the cost to Borrower of the
<br /> mortgage Insurance previously in effect, from an altemate mortgage insurer approved by Lender. If substantfally equNalent mortgage
<br /> insurance'coverage Is not available, Borrower shall pay to Lender each month e sum equal to one-twelfth of the yeerly mortgage
<br /> insurence premium being paid by Borrower when the insurance coverage lapsed or ceased to be in ei(ect. Lender will accept, use and
<br /> retain these payments as e loss reserve in tleu oi mortgage insurance. Loss reserve payments mey no longer be requlred, et the
<br /> optlon of Lender, it mortgege insurance coverage (tn the amount and for the period that Lender requires) provided by an Insurer
<br /> approved by Lender egaln becomes aveNable and Is obtelned. Borrower ehell pay the premiums required to maintain mortgage
<br /> insurance in ei(ect, or to provide a loas reserve, untN the requlrement ior mortgege Insurance ends In accordence wlth any wrltten
<br /> agreement between Borrower and Lender or applicable law.
<br /> 9. InspeCtion. Lender or its agent may make reasonable entries upon end inspections of the Property. Lender shaD give
<br /> Borrower notice at the time oi or prlor to an inspection apecifying reaaonable cause for the inspection.
<br /> 10. Condemnation. The proceeda of eny awsrd or clalm for damages, direct or consequential, in connection with any
<br /> condemnatlon or other taWng of any part ot the Property, or for conveyance In Ileu of condemnatlon, ere hereby asslgned and ahall be
<br /> pald to Lender.
<br /> In the event of a total taking ot the Property, the proceeds shall be epplied to the sums secured by this Security Instrument,
<br /> whether or not then due, with any excess paid to Borrower. In the event oi a partial taking of the Property in whlch the fair mericet
<br /> value of the Property immedlately before the taktng Is equal to or greater then the emount oi the sums aecured by thla Security
<br /> Instrument immediately betore the teking, unless Borrower and Lender otherwise egree In writing, the sums aecured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds multiplled by the following Traction: (a) the total emount of the eums
<br /> secured immediately before the taking, divided by (b) the falr market velue of the Property Immediately before the teking. My balance
<br /> shall be pald to Borrower. In the event of a partial taking oi the Property In which the falr market value oi the Property immedlately
<br /> betore the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise
<br /> agree in writtng or unless appflcable law otherwise provides, the proceeds shall be applied to the sums secured by this 3ecurity
<br /> Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, aiter notice by Lender to 8orrower that the condemnor ofiers to make an award or
<br /> settle a claim for damages, Borrower fails to respond to Lender within 30 days aiter the date the notice is given, Lender is authorized
<br /> to collect end apply the proceeda, at ks option, efther to restoration or repair of the Property or to the sums secured by thls Security
<br /> Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any epplicetion of proceeds to principal shall not extend or postpone the
<br /> due date oT the monthly payments referred to in paregraphs 1 and 2 or change the emount of such payments.
<br /> 11. Borrower Not Released: Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modHicetion of amortizetion of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower
<br /> sheN not operete to release the Ilability of the original Bonower or Borrower's successors in interest. Lender shall not be required to
<br /> commence proceedfngs agalnst any successor in interest or refuse to extend time for payment or otherwise modffy emortizatlon ot the
<br /> sums secured by this Security Instrument by reason of any demand made by the orfginal Borrower or Borrower's succeasore in
<br /> interest. My forbearance by lender in exercising eny �Ight or remedy shall not be a weNer of or preclude the exerdse of any right or
<br /> remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The • covenants end
<br /> egreementa oi this Security Instrument ahall bind end beneflt the successors and essigns of Lender a�d Borrower, aubJect to the
<br /> provisions of peregraph 17. Borrower'a covenants and agreements shall be Joint and several. My BoROwer who co-slgns this Sec;uri►y
<br /> Instrument but does not execute the Note: (a) is casigning this Security Instrument only to mortgage, grent, and convey that
<br /> BoROwer's interest in the Property under the terms oi this Security Instrument; (b) is not personally obllgeted to pay the sums secured
<br /> by this Security Instrument; and (c) agrees that Lender and any other Borrower msy agree to extend, modNy, torbear or make any
<br /> accommodations with regard to terms of this Secur(ty Instrument or the Note wRhout that BoROwer's consent.
<br /> 13. Loan Cherges. If the loan secured by this Security Instrument Is subJect to e law which sets meximum loan chergea,
<br /> end that law is flnally interpreted so that the interest or other loan charges collected or to be collected in connection with the loen
<br /> exceed the permitted Iimfts, then; (a) any such loan charges shall be reduced by the amount necessery to reduce the charge to the
<br /> permitted Iimit; and (b) any sums already collected irom Borrower which exceeded petmitted Iimits will be retunded to Borrower, Lender
<br /> mey choose to make this retund by reducing the p�incipal owed under the Note or by mak(ng a direct payment to Borrower, Ii a
<br /> retund reduces principal, the reduction will be treated as a partial prepayment wfthout any prepayment charge under the Note.
<br /> 14. NOtiCes. My notice to Borrower provided for i� this Security Instrument shell be given by delivering it or by malling it by
<br /> flrst dass mail unless appllcable law requlres 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 notfce to Lender shall be given by flrst class mail to Lender's address
<br /> stated hereln or eny other address Lender designates by notice to Borrower. My notice provided tor in this Security Instrument ahell
<br /> be deemed to have been given to BoROwer or Lender when given as provided in this paragraph.
<br /> 15. Governing LBw; Severability. This Secu�ity Instrument shall be govemed by federal lew end the law oi the
<br /> jurisdiction In which the Property Is loceted. In the event that any provision or clause of this Security Instrument or the Note conflicts
<br /> wfth applicable law, such conflict shall not ai(ect other provisions of this Security Instrument or the Note which can be given effect
<br /> wfthout the conflicting provision. To this end the provisions oi this Security Instrument and the Note ere declared to be aeverable.
<br /> 16. Borrower's COpy. Borrower shall be given one confonned copy of the Note and oi this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Propery or eny
<br /> interest in ft fs sold or trarrsierred (or if a beneflcial interest in BoROwer is sold or trensferred and Borrower is not a natural peraon)
<br /> wfthout Lender's prior written consent, Lender may, et ks option, require immediate payment fn full of all sums secured by this 3ecurity
<br /> Inatrument. However, thls option shall not be exercised by Lender if exercfse is prohibfted by federal law as oi the dete oi thia 3ecurity
<br /> InsVument.
<br /> If Lender exercises this opUon, Lender shall give Borrower notice oi acceleratfon. The notice shall provide e period of not less
<br /> than 30 days irom the date the notice la delivered or mafled wfthin which the Borrower must pay ail sums secured by thts Security
<br /> Instrument. If Borrower falls to pay these sums prior to the expiratfon oi this period, Lender may Invoke any remedies p�� by this
<br /> Security Instrument wfthout iurther notice or demand on Borrow�.
<br /> F1029.LM0 (10/9� Fam 3029 9/90
<br /> Psge 3 of 5
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