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If Lender required mortgage insurance as a condition af making the loan secured by this Security Instrument,
Borrower shali pay the prcmiums required to maintain the insurance in effect until such timc as the requircment Por thc
insurance terminates in accordance with Borrowef's and l,ender's written agreement or applicable law.
8. Inspection. Lende~ or its agent may make reasonable entrics upon and inspections of the Propeny. Lender
shall give Borrower ~atice at the time of or prior to an inspection specifying reasonable cause for the inspeclion.
9. Condemnatton. The proceeds of any award or claim for damages, direct 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 l.ender.
In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
Instrument, whether or not then due, with any excess paid tn Borrower. In the event of a partial taking of the Property,
uniess Borrowe~ 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 o}'the Property immediately before the taking. A~y balance shall be
paid to Barrower.
lf the Property is abandoned by Borrower. or if. aRer notice by Lender to Borrower that the condemnor ofTers to
make an award or settle a claim for damages. Borrower fails to respond to Lender within 30 days aRer the date the notice is
given, Lender is suthorized 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 lnstrument. whether or not then due.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or ~
~iNu,~e ti~~c 3ue uaie u~' ~ic ~~~viiiiiy ~~ytrtents 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 oP the sums secured by this Security Instrument granted by Lender to any successor in
interest of Borrower shall not operate to retease 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 original 8orrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy
shall not be a waiver of or preclude the exercise of any right or remedy.
11. Successors and Assigns Bonnd; Joint and Several Liability; Co-signers. The covenants and agreements of
this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions
of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
Instrument but does not execute 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 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 accommaiations 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 mazimum 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 Borrower which exceeded
permitted limits will be refunded to Borrower. Lender may choose to make this retund 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
panial prepayment without any prepayment charge under the Note. ~
~ 13. Legislation Affecting Lender's Rights. If enactment or expiration of applicable laws has the .eEfect of
rendering any provision of the Note or this S~curity lnstrument unenforceable according ro 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
permitted by paragraph 19. If Lender exercises this option, Lender shall take the steps speci6ed in the second paragraph of
paragraph 17.
' 14. Notices. Any notice to Borrower provided for in this Securit~ Instrument shall be given by delivering it or by
i 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 Borrower designates by notice to Lender_ Any notice to Lender shall be given bk
~ first class mail to Lender's address stated herein or any other address Lender designates by notice ta 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.
15. Goveroing I.aw; Severability. This Sccurity 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 Se~urity 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 eflect without the conflicting provision. To this end the provisions of this Security Instrument and the
Note are declared to be severable.
16. Borrorrer's Copy. Borrower shall be given one conformed eopy of the Note and of this Security Instrument.
~ 17. Transfer of the Property or a Beneficial Interest in Bonawer. If ali or any part of the Property or any
~nierest m 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 immediate payment in fuihof all sums
secured by this Seeurity Instrument. However. this option shall not be exerc:ised by Lender iP exercise is prohibited by
federal law as of the date of this Security Instrument.
If Lender exercises this option, Lender shal! give Borrower notice of acceleration. The notice shall provide a period
of not less than 30 days Prom the date the notice is delivered or mailed>within which Borrower must pay all sums securcd by ;
this Security Instrument. If Horrower fails to pay these surps prior to the expiration of this period, Lender may invoke any
remedies permitted by this Security Instrument without further notice or demand on Borrower.
18. Borrower's Rig6t to Reinstate. If Borrower mcets certain conditions, Borrower shall have the right to have
enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) S days (or such other period as
applicable law~ may spec~fy for reinstatement) before sale of the Property pursuant to any power of sale contained in this
Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Bortower:
(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 eapens~s incurrod in enforcing this
Security Instrument, including, but not limited to; reasonable attorneys' fees; and (d) takes such action as I,enda` may
reasonably require to assure that the lien of this Security Instrument. l.ender's rights in the Property and'.Borrower's
obligation to pay the sums secured by this Security Instrument shall continue unchangod. Upon reinstat~ment by
Borrower. this Security Instrument ~nd the obligations secured hereby shall remain fully effective as if no acceleration had
occurred. However, this right to reinstate shatl not appty in the case of acceleratio nder graphs 13 or 17.
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