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lf l.cnder required mortgage insurance as a condition of making the laan secured by this Security Instrument,
Borrow~er shall pay~ the premium~ required to maintain the insurance in eflect until such time as the requirement for the
insurance terminates in accordance with I3orrow~e~'s and Lender's written agreement or applicable law.
8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Praperty. 1_ender
sh~ll give 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 ather taking of any part of the Praperty, or for conve~~ance in lieu of condemnation, are hereby ~
assigRed and shal) be paid to l.ender.
(n the event af a tolal taking of' the Property, the prcxeecis shall be applied to the sums secured by this Security
InstrUment, w~hether or not then due, with any excess paid to Borrower. In the evenl of a partial taking of the Property, ~
unless E3orrawer and Lender othe~wise agree in writing, the sums securc~ci by this Security Instrument shall be reduced by
ihe 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 beforc the. taking. Any balance shall be
paid to Borrow~er. t
If the P~operty is abandoned by Borrawer, or if, after notice by I_ender to f3arrower Ihat the condemnor offers to
make an award or settle a claim for damages, Borrower fails to respond to Lender a~ithin 30 days aRer the date the notice is
gi~•en, Lender is authorizcd to collect and apply the proceeds, at its option, either to restoration or repair of the Pro~erty or -
to the sums secured by this Security Instrument, whether or not then due.
Unless Lender and Borrower othen+rise agree in writing, any application of proceeds to principa) 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. Exlension of the time for payment or
mcxlification of amortization of the sums secured b~~ this Security Instrument ~ranteci by Lender to any successor in
interest of Borrower 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 succes~or in interest or refuse to extend time Por
payment or otherw~ise modif}~ amortization oi'the sums secured by this Security Instrument by reason of any demand made
by the original Borrow•er or Borrower's successors in interest. Any forbearance b~~ Lender in exercising any right or remedy
shall not be a H~aiver of or preclude the exercise of any right or remedy.
Il. Successors and Assigns Bound; Joint and Several I.iability; Co-signers. The covenants and agreements of
this Security lnstrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions
ot paragraph 17. Borrow•er's co~•enants and agreements shall be joint and several. Any $orrower who co-signs this Security
lnstrument 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 Securit}• Instrument; (b) is not personally obligated ta pay
the surns secured by this Security Instrument; and (c) agrees that Lender and any other B~rrower may agree to extend,
modify, forbear or make an~~ acco:nmcxiatians with regard to the terms of this Security Instrument or the Note without
that Borrower's consent.
12. I.oan Charges. If the loan secured by this Securit~• Instrument is subject to a law ~~hich 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 shalf be reduced by the amount
necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrow~er which exceeded
permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal awed
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 Lender's Rights. If enactment or expiratian 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 immediate payment in full of all sums secured by this Securit}~ Instrument and may invoke any remedies
permitted by paragraph 19. If Lender exercises this option, Lender shal) take the steps specified in the second paragraph of
paragraph 17.
14. tiotices. An~~ notice to Borrow~er provided for in this Security Instrument shall be given by delivering it or by
' mailing it b}• first class mail unless applicable la~v requires use of another method. The notice shall be directed to the
i Property 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 Securiry Instrument shall be deemed to ha~~e been gi~•en to Borrower or Lender when gi~~en as provided
in this paragraph. .
15. Governing Law; Severability. This Security Instrument shall be govcrned by federal law and the law ot the
jurisdiction in which the Property is located. In the event that an~• 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 effi'ect without the conflicting provision. To this end the provisio:~s of this Security Instrument and the
Note are declared to be severable.
16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument.
l7. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any
i~terest 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 immediate payment in full 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 Instrument.
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
this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any
remedies permitted by this Security [nstrument without further 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 spec~fy for reinstatement) betore 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 Borrower:
(a) pays Lender all sums which then weuld 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 eapenses incurred in enforcing this
Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as I.ender may
reasonably require to assure that the lien of this Security Instrument, i,ender's rights in the Property and Borrower's
obligation ro pay the sums secured by this Security Instrument shaU contintre unchanged. Upon reinstatement by
Borrower, this Security Instrumec~t and the obligations secured hereby shaU remain fully eflective as if no acceleration had
occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraphs I 3 or 17
~0535 P~0944
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