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It l_ender reyuired mortgage insurance as a condition of making the loan ~ecured by this Security Instrument,
Burn~wer shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the
intiurance terminates in accordance with Borrower's and Lender's written agreement or applicable law.
8, Inspection. Lender or it's agent may make reasonable entries upon and inspections of the Property. Lender
shali gi~ e Borrow~er notice at the Iime of or prior to an inspection specifying reasonable cause for the inspection.
9. Condemnation. The proceeds of any award or claim for darrtages, direct or eonsrquential, 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.
In the event of a total taking of the Pro}xrty, the proceeds 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 taking 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 oP 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 BorroW~er.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor oflers 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 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 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 L.ender to any successor in
interest of Borrower shall not operate to release the liability of the originat Bonower or Borrower's successors in interest_ ,
l.ender 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 Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy
shall not be a w~aiver of or preclude the exercise of any right or remedy.
11. Successors and Assigns Bound; Joint aad Sereral Liability; Casigners. The covenants and agreements of
this Security Instrument shalt bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions
of paragraph 17. Borrower's coverants and agreements shall be joint and several. Any Borrower who co-signs this Security
Instrument but does not execute the Note: (a) is casigning 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 eztend,
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 lns;rument 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 Qermitted limits, then: (a) any such loan charge shali be reduced by the amount
necessary to reduce the charge to the permitted limit; and (b) any sums already collected fram Borrower which eaceeded
permitted limits will be refunded to Borcower. L.ender 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 AtTecting Lender's Rights. If enactment or ezpiration of applicable laws has the effect of
P rendering any provision of the Note or this Security Instrument unenforceable according to its terms, Lender, at its option,
i may require. immediate payment in full of all sums secured by this Security lnstrument and may invoke any remedies
; permitted by paragraph 19. If Lender exercises this option, Lender shall take the steps specified in the second paragraph of
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~ paragraph 17.
14. tiotices. 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 an}• 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 Bonower. Any notice
~ provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided
j in this paragraph.
~ 15. 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
~ w~hich 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 shall be given one conformed copy of the Note and of this Security Instrument.
17. Transfer of the Property or a Beneficial Interest in Borrower. If al! 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 Borrow~er is not a natura)
~rson) without Lender's prior written conaent, Lender may, at its option, require immediate payment in full of all sums
r secured b}~ this Security Instrument. However, this option shall no? 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 daS~s from the date the notice is delivered or mailed within which Borrow~er must pa}~ all sums secured by
thi` 5ecurity Instrument. If Borrower fails to pay these sums prior ro 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 Right to Reinstate. If Borrou~er meets certain condition~. Borrower shall have the right to have
; enforcement c~f this Security~ Instrument discontinued at an}~ time prior to the earlier of: (a) 5 day~s (or such other period ati
~ applirable law ma~ speci(~ for reinstatement) before sale of the Property pursuant to an~• ~wer oisale rontained in this
~ Securit} Irr,trument: or (b) entry of a judgment enforcing this Security Instrument. Those conditions arr that Borrower.
~ (d) pa~s Lender all sumti which then u~ould be due under this Security Instrument and the Note had no acceleratiein
cxcurred: (b? ~ures any default of anc other covenar.ts or agreements; (c) pays all expenses incurred in enforcing thi~
~ Serurit~~ Instrument. ~nrluding, but nnt limited to, reasonable attorneys' fees: and (d1 tekes such action as Lender ma~
reationabl~ rer~uire t~~ a~~ure that the lien of this Security Instrument, Lender'S nght~ in the Proprrt~~ and &~rrower'ti
~ obligancm t~~ pa} thr ~um~ 4ecured b}~ this Securit}~ Instrument shall continue unrhanged. l;~~n reinstatement b~•
, Borr~wer, thiti Seruri~~ In,trument and the obligations secured hereb~~ 1hall remain fuU~ rfl'r~tise ati if nc~ acceleraticm had
~xcurred. H~~~~r~ rr. thi~ right ro reinstate shall n~t ap~l~~ tn the ca~e ~f arcelrran~~n under rar.igra~h~ 1 z~~r 17
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