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If Lender required mortgage insurance as a condition of making the loan secured by this Security lnstrument,
Borrow~er shall pay the premiums required to maintain the insurance jn effe,ct until such time~,as the requirement for the
insurance terminates in accordance with Borrower's and Lender's written agreement or aElplicable law.
8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender
shall gi~•e Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
any condemnation or ether taking of any part of the Property, or for conveyanct in lie,u of condemnation, are hereby
assigned a?:d shall be paid to Lender.
In the event of a total taking of the Property, the proceecis shall be applied to the sums secured by this Security '
Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial iaking of the Property,
unless Borrow~er and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by
the 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 batance shall be
paid to Borrower.
If the Property is abandoned by Bonower, or if, after notice by Lender to Borrower that the condemnor ofters to
make an award or settle a claim for damages, Bonower fails to respend to Lender within 30 days aRer the date ~he notice is
given, Lender is authorized 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 Instrument, whether or not then due.
Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall not extend or
postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in
interest of Bonower shall not operate to release the liability of the 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 reason of any demand made
by the origina) Borrower or Borrower's successors in interest. Any forbearance by Lender in eaercising any right or remedy
shall not be a wai~ er of or preclude the exercise of any right or remedy.
11. Successors and Assigns Bound; Joint and SeverAl Liability; Co-signers. The covenants and agreements of
this Security Instrument shail bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions
of paragraph 17. Borrower's cov~nants and agreements shall be joint and several. Any Borrower who co-signs this Security
Instrument but dces not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey
that Borcower's interest in the Pro~erty under the terms of this Security 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 Security Instrument or the Note without
that Borrower's consent.
12. Loan Charges. 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 exceed 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 exceeded
permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed
under the Note or by making a direct 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. Legislation Affeeting Leader's Rights. If enactment or eapiration of applicable laws has the eftect of
i rendering any provision of the Note or this Security Instrument unenforceable according to its terms, Lender, at its option,
~ may require immediate payment in full of all sums secured by this Security Instrument and may invoke any remedies
f permitted by paragraph 19. If Lender ezercises this option, Lender shall take the steps specified in the second paragraph of
~ paragraph 17.
! 14. Notices. 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 requices use of another method. The notice shall be directed to the
Yropeny Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by
~ first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice
provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided
in this paragraph.
I5. Governing Law; Severability. This 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
~ Note are declared to be severable.
16. Borrower's Copy. Borrower shali be given one conformed copy of the Note and of this Security Instrument.
~ 17. Transfer of the Property or a Beneficisl Interest in Borrower. If all or any part of the Property or any
interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural
~ person) without Lender's prior written consent, Lender may, at its option, require immediat~ payment in fuli of all sums
secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by
~ federal law as of the date of this Security Instrumeni.
~ If Lender exercises this option, Lender 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
r this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any
~ remedies permitred by this Security Instrument without further notice or demand on Borrower.
~ 18. Borrower's Right ta 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 iaw ma}• specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this
Securit}~ Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower:
(a) pay~s Lender all sums which then would be due under this Security Instrument and the Note had no acceleration
oe curred; (b} cures an}• default of an}• other covenants or agreements; (c) pays all expenses incurred in enforcing this
Securit}~ Instrument, including, but n~t limited to, reasonabie attorneys' fees; and (d) takes such action as Lender may
reasonably require t~ assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's
obl~gation to pay the sums secured by this Security Instrument shail continue unchanged. Upon reinstatement by
Borrow~er, this Securit}~ Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had
occurred. How~e~~er, this right to reinstate shall not apply in the case of acceleration under paragranhs 13 or 17.
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