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!f Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument,
Borrower shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the
insurance terminatrs in accordance with Borrowet's and Lender's written agreement or applicable law.
8. Inspection. Lender or its agent may mnke reasonable entries upon and inspections of the Property. Lender
shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause far the inspection.
9. Condemnation. The prc~ceeds ot' any award or claim for damages, direct or consequential, in connection with
any condemnation or other taking of any part of the Propeny, or far conveyance in lieu of condemnation, are hereby
assigned and shall be paid to Lender.
!n the event of a t~tal 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 to Borrower. In the event of a partial taking of the Property,
unless Borrower 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 folloa~ing 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 Borrower.
It the Property is abandoned by Borrower, or if, after notice by Lender to l3orrower that the condemnor off'ers to
make an award or settle a claim for damages. Borrow•er fails to respond ta 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, a~hether or n~t then due.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
postpone th? due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such pa~ ments.
l0. 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 Borrower shall not operate to release the liability of the original Borrow•er 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 Securit~~ Instrument by reason of any demand made
by the original Borrower or I3orrow~er's successors in interest. Any forbearance by Lender in exercising any right or remedy
sfiall not be a w~aiver 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 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 mongage, grant and convey
that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personalty 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 accommociations 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 Secucity 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 ezceeded
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.
I l3. Legislation AfTeeting Lender's Rights. If enactment or expiration 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 ful! 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 specified in the second paragraph of
~ paragraph 17.
~ 14. Notiees. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by
E mailing it by first class mail unless applicabte 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 by
first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice
provided (or in this Security Instrument shall be deemed to have been gi~~en to Barrower or Lender when given as provided
in this paragraph.
15. Governing Law; Severability. This Securit~~ Insirument shall be governed by federal law and the law of the
jurisdiction in which the Property is located. [n the event ihat any provision or clause of this Security Instrument or the
~ Note conflicts with applicable law, such conflict shall nat affect other provisions of this Security Instrument or the Note
' which can be given effect without the cor~flicting 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 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) a~ithout 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 sha11 not be ezerc~sed 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
: ,.~j,~ this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lrnder may invoke any
~ ~ remedies permitted by this Security Instrument without further notice or demand on E3orrower.
; 18. Borrower's Riaht to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have
~ enforcement o;'rhis Security Instrument discontinued at any time prior to the earlier of: (a) S days (or such other period as
~ applicaole law• may spec~fy for reinstatement) before sale of the Property pursuant to any power of sale contained in this
~ Security Instrument; or 1b} entry of a judgment enforcing this Security Instrument. Those conditions are that Borrow~er:
~ (a) pays Lender all sums which then would be due under this Security [nstrument and the Note had no acceleration
occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this
~ Security Instrument, including, but not limited to, reasanable attorneys' fees; and (d) takes such action as I,ender may
~ reasonably reyuire to assure that the lien of this Security Instrument, I.ender's rights in the Property and Borrower's
~ obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by
Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had
occurred. Howe~er, this right to reinstate shall not apply in the case of acceleration under paragraphs 13 or 17.
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