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If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument,
Borrower shall pay the premiums required to maintain the insurance in effcct until such time as the requirement for the
insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law.
8. laspection. Lender or its agent may make reasonable entries upon and inspections of the Property. L.ender
shall give Borrower notice at the time of or prior to an inspoction specifying rtasQnable cause for the inspection. o
9. Coademnation. The proceeds of any award or claim for damages, dircct or consequential, in connection with
any condemnation or other taking of any part of the Property. or for conveyance in lieu of condemnation. are hereby
assigned and shall be paid to Lender.
ln the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
?nstrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property, ~
unless Borrower and Lender otherwise agrce in writing, the sums secured by this Security Instrument shail be reduced by
th~ amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately
before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be
paid to Borrower.
If the Property is abandonad by Borrower, or if, atter notice by Lender to Borrower that the condemnor dffers to
make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is
given, Lender is suthorized to collxt and apply the proceeds, at its option, either to restoration or repair of the Property or
to the sums secured by this Security lnstrument, whether or not then due. ,
Unless Lender and Borrower otherwise agrce in writing, any application of proceeds to principal shall not eatend or !
postpone the due date of the monthly payments referred to in paragraphs l and 2 or change the amount of such payments.
10. Borrower Not Released; Forbeuance Sy I.ender Not a Wdver. Extension of the time for payment or
modification of amortization of the sums securod by this Security Instrument granted by Lender to any suocessor in
interest of Bonower shall not operate to release the liability of thz original Borrower or Borrower's successors in interest.
Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for
payment or otherwise modify amortization of the sums secured by this Security Instrument by reawn of any demand made
by the original Borrower or Borrower's successors in interest. Any forbearance by I.ender in exercising any right or remedy i
shall not be a waiver of or preclude the exercise of any right or remedy.
11. Successors and Assigns Bound; Joint and Several I3abIUty; Co-si~ners. The covenants and agreements of
this Security Instrument shall bind and benefit the successors and assigns of I.ender and Bonower, subjoct to the provisions
; of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
I Instrument but does not eaecute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey
~ that Borrower's interest in the Property under the terms of this Socurity Instrument; (b) is not personally obligated to pay
the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower~ may agree to extend,
modify, forbear or make any accommodations with regard to the terms of this Securety Instrument or the Note without
that Borrower's consent.
I' 12. Loaa C6arges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan
charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in
connection with the loan exce,ed the permitted limits, then: (a) any such loan charge shall be reduced by the amount
necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Bonower which eacceded
~ permitted limits wiU be refunded to Borrower. Lender may choase to make this refund by reducing the principal owed
~ under the Note or by making a diroct payment to Borrower. If a refund reduces principal, the reduction will be treated as a
partial prepayment without any prepayment charge under the Note.
~ 13. Ixgislation Affeeting Lender's Rigi?ts. If enactment or ezpiration of applicable laws has the effect of
! rendering any provision of the Note or this Security Instrument unenforceable according to its terms, Lender, at its option,
' may require imme~iate payment in full of all sums secured by this Security Instrument and may invoke any remedies
~ permitted by paragraph 19. If L,ender exercises this option, Lender shall take the steps specified in the second paragraph of
~ paragraph 17.
14. Notiees. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by
~ mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the
~ Property Address or any other address Bottower designates by notice to I,ender. Any notice to L,ender shall be given by
~ first class mail to I,ender's address stated herein or any oiher address Lender designates by notice to Borrower. Any notice
provided for in this Security Instrument shall be deemed io have been given to Borrower or Lender when given as provided
~ in thls paragraph.
E 15. Goveraing Law; Severability. T'his Security Instrument shall be governed by federal law and the law of the
! jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the
~ Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note
which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the
s Note are declared to be severable.
~ 16. Bocrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument.
~ p'(; 17. Transfer of the Property or a Beneficial Interest in Borrower. 1f all or any part of the Property or any
k i~ rest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transfened and Borrower is not a natural
~ person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums
secured by this Security Instrument. However, this option shall not be exercised by I.ender if ezercise is prohibited by
federa! law as of the date of this Security Instrument.
If Lender exercises this option, L.ender shall give Borrower notice of acceleration. The notice shall provide a period
of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by
this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, I,ender may invoke any
remedies permitted by this Security Instrument without turther notice or demand on Borrower.
18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have
enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as
applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this
Security Instrument; or (b) entry of a judgment enfarcing this Security Instrument. Those conditions are that Borrower:
' (a) pays Lender all sums which then would be due under this Security Instrument and the Note had no acceleration
~ occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this
` Securitp Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may
reasonably require to assure that the lien of this Security Instrvment, [,ender's nghts in the Property and Borrower's
obligatior. to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by
Borrow•er, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had
~ occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraphs 13 or 17.
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