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If Lender required mortgage insurance as a condition of making th~ loan secureci by this Security instrument,
Borrower shall pay the premiums required to maintain the insuranc~ in effect until such time as the requirement for tfie
insurance terminates in accordance with Borrower's and Ixnder's written agreement or apQlicable law.
8. Inspection. Lender or its agent may make reasonable entries upor~ and inspect~ons of the Property. L.ender
sha11 give Borrower notice at the time ot'or prior to an inspection specifying reasonable cause for the inspection.
9, Condemnatioe. 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 Propeny, or for conveyance in lieu of condemnation, ar~ hereby
assigned and shall be paid to Lender.
In the event of a total taking of the Property, the proceeds shail be applied to the sums secured by this Security
Instrument, whether or not then due, with any excess paid to Bonower. In the event of a partial taking of the Property,
' unless Borrower and Lender otherwis~ 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 of the Property immediately before the taking. Any balance shatl be
paid to Borrower.
If the Property is abandoned by Borrower. or if, after notice by Lender to Horrower that the condemnor offers to
make an award or settle a claim for damages. Banower fails to respond to Lender within 30 days after the date the notice is
givon, Lender is suthorized to collxt and apply the proceeds. at its option, either to restoration or sepair of the Property or
to the sums secured by this Security Instrument. whether or not then due.
Unless Lender and Bonower otherwis~ agree in writing, any application of proceeds to principal shall not extend or
postpont the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
10. Borrower Not Rele~ed; Forbearance By Lender Not a Wairer. Eatension of the time t'or payment or
modification of amortization of the sums secured by this Security Instrument granted by Ixnder to any successor in
interest of Borrower shall not operate to release the liability of the original Borrower or 8orrower's successors in interest.
Lender shall not be roquirod to commence proctedings 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 Bonower or Borrowtr's successors in interest. Any forbearance by L.ender in exercising any right or remedy
shall not be a waiver of or preclude the exercise af any right or remedy.
11. Suecessors snd Assigns Bound; Joint And Sereral LiabiUty; Co-si~nners. 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
Instcument but does not execute the Note: (a) is casigning this Security lnstrument only to mortgage, grant and convey
that Bonower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay
the sums secured by this Socurity Instrument; and (c) agrees that Lender and any other Borrower may agree to extend,
modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without
that Borrower's consent.
l2. Loan Charges. If the ioan secured by this Security Instrument is subject to a law which sets maximum loan
charges, and that !aw is finally intecpreted so that the interest or other loan charges collected or to be coliected in
co;:nection with the loan exceed the permitted limits, then: (a) any such loan charge sha!! 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. L.ender may choose to make this refund by reducing the principaf 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 cfiarge under the Note.
li 13. Le~slation APtecting Leader's Rights. If enactment or expiration of app{icab{e laws has tfie effect of
rendering any provision of the Note or this Security Instrument unenforceable according to its ierms, Lender, at its option,
; may require immediate payment in full of all sums secured by this Security Instrument and may invoke any remedies
E 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 Bonower provided for in this Security Instrument shall be given by deiivering 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 any other address Borrower designates by notice to I.ender. 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 Security Instrument shall be deemed to have been given to Borrower or Lender when g3ven as provided
~ 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
which can be given effect without the conflicting provisiun. 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 Beneficistl 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) without Lender's prior written consent, L.ender 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 I.ender 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 espiration of this period, I,ender may invoke any
' remedies permitted by this Security Instrument without furtfier notice or demand on Borrower.
? 18. Borrower's Right to Reinstate. If Borrower meets certain conditions. Borr~wer shall have the right to have
4~ enforcement of this 5ecurity Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as
~ applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this
~ Securiry Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower:
~ (a) pays Lender all sums which then would be due under this Security instrument and the Note had no acceleration
~ occur-ed; (b) cures any default of any other covenants or agreements; (c) pays aU expenses incurred in enforcing this
~ Security 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 Se~urity Instrument, Lender'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 obligstions secured hereby shall remain fully effective as if no acceleration had
occurred. However, this cight to reinstate shal! not apply in the case oEacceleration unde* paragraphs 13 or 17.
~ ~a~K 674 2302
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