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[f Lender required mortgage insurance as a condition af making the loan secured by this Security Instrument,
Borrower shail pay~ the premiums required t~ maintain the insurance in elfect until such time as the requirement for the ~
insurance terminates in accordance with Borrower's and Lender's w ritten agreement or applicable law. ~
8. I~spection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender }
shall give Borrowe~ notice at t he time o f or prior to an inspection specifying reasonable cause fo~ the ins~c:ction. '
9. Condemnation. The proceeds of any award or claim for damages, direct or co~sequential, in conneciion with ~
any condemnation or other taking of any~ part oF !he Property, or far conveyance in lieu of condemnation, ~are hereby ~
assigned and shall be paid to Lender. ~
In the event ot a total taking of the Property, the proceecis shall be applied to the sums secured by this Security ~
Instrument, whethcr or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property,
unless Borrov?~er and Lender atherwise agree in writing, the sums secured by this Ser;urity Instrument shall be reduced by
the amount of the proceeds multiplied by the following fraction: (a) the tota! amount of the sums secured immediately
before the taking, divided by (b) the fair market value of the Property imme~iately before the taking. Any bala~ce shatl be
paid to Borrower.
If the Property is abandoned by Borrower, or if, after notice by Lender to E3orrower that the condemnor ofters to
make an award or settte a claim for damages, Borrower faits to respond to Lender within 30 daps after the date the 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 Borrower otherwise agree in writing, any application af 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 grant+ed by Lender to any successor in
interest of Borrower shal! not operate to release the liability of'the original Plorrower 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 rnodify amortization ot'the sums secured by this Security Instrument by reasan of any demand made
by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy
shall not be a waiver of or preclude ttte exercise of any right or remedy.
11. Suceessors and Assigns Bound; 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 lnstrument; (b) is not personally obligated to pay
the sums securer! by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to exiend,
modify, forbear or make any accommodations with regard to the terms of this Security [nstrument or the Note without
that Borrower's consent.
12. Loan Charges. If the loan secured by this Security Instrument is suhject ro a law which sets maximum loan
charges, and that law is finaliy interpreted so that the interest or other loan charges collected or to be collec:ted in
connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount
necessary ro reduce the charge to the permitted limit; and (b) any sums alreaciy rollected from Borrower which exceeded
permitted limits will be refunded ta Borrower. Lender may choose to make this refund by reducing the principal owed
under the Note or by making a direct payment to Borrower. Ita retund reduces principal, the reduction a•il! t~ treated as a
partial prepayment without any prepayment charge under the Note.
13. Legislation Affecting Lender's Rights. If enactment or expiration of applicable laws has the ef~ect of
rendering any provision of the Note or this Security lnstrument 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 shatt take the steps specified in the second paragraph of
paragraph 17.
14. Notices. Aoy notice to Borrower provided fcr in this Security lnstrument shall be given by delivering it or by
mailing it by first class mail unless appticable law~ requires use of another methcxi. The notice shail be directed to the
Property Address or any other address Borrower designates by notice ro l.ender. Any notice to I_ender shall be given by
M first elass mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice
~ provided for in this Security [nstrument shait be deemed to have been gi~~en to Borrower or l.ender when given as provided +
( in this paragraph. ~
!5. Governing Law; Severebility. This Security fnstrument shall bc governed by federal law~ and the law of the ~
~ jurisdiction in which the Property is located. In the event that any provision or cfause of thiti Securily Instrument ~r the ~
~ Note confl~ets wUh appl~cable law, such conflict shall not affec? other pr~v~s~ons of this Security Instrument ~r the Notr
which can be given effect without the conflicting provision. To tl~is end the provisions of this Security Instrument and the ~
Note are declared to be severable. ;
~ I6. Horrower's Copy. Borrower shaU be given one conformed copy of the Note and ot this Securit}• Instrument. i
~ 17. Transfer of the Property or a$eneficial Interest in Borrower. If all or an~~ part oP the Yroperty or a7y
interest in it is sold or transferre~ (or if a beneficia) interest in Borrower is sold or transferrcd and f3orrower is not a naturai
person) without Lender's prior written consent, Lender may, at its option, reyuirc immcdiate paymrnt 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 pro~ ide a pericxi
f of not fess than 30 days from the date the notice is delivered or meiled within which Borrower must pay all ~ums secured by
this Security Instrument. If Borrower fails ta pay these sums prior to the ezpiration of this period, I_ender may im~oke an}•
remedies permitted by this Security [nstrument without turther notice or demand on Borrnwer.
~ 18. Borrower's Right to Reinstate. If Borrower meets cenain conditions, Borrawer shall have the right to have
enforcement of this Security [nstrument dise~ntinued at any time prior to the earlier of: (a) 5 days (or such other periocl as
applicable law may specify for reinstatement) before sale of the Property pursuant to any ~wer of sale contained in this
' Security Instrument; or (b) entry of a judgsnent enforcing this Security Instrument. Thc~se conditions are that E3orrower:
(a) pays Lender all sums which then would be due under this Security Instrument and the Notc had no acceleration
accurred; (b) cures any dei'ault of any other covenants or agreements; (c) pays all expenses incurred in enforcing this
Secarity 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 Se4urity Instrument, Lender's rights in the Property and Borrower's
obligation to pay the sums sec:ured by this Security Instrument shail continue unchanged. Upon reinstatement by
Borrower, this Security [nstrument and the obligations secured hereby shal! remain fully efTective as if no acceleration had
occurred. However, this right to reinstate shal! not ap~ly in the case of acceleration under paragraphs 13 or 17.
gaoK 571 F~~~ 981 eooK 568 PACf 2355
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