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HomeMy WebLinkAbout1361 7. Protection of ixndet's Rignis in ihe Pruperty; i~tu~tg~ge Insurs:~rz. if Sorrou~er faiis ro perform the co~~enants and agreements containeci in this Security Instrument, or there is a iegal proceeding that may significantly affect Lender's right in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations). then Lender may do and pay for a~hatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender dces not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest fram the day of disbursement at the Note rate and shall be payable, with interest, upon notice from l.ender to Borrower requesting payment. 8. lnspection. Lender or its agent may make 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 t'or the inspection. 9. Condemn9lion. 7'he pruceeds of any award or claim for damages* direct or consequential, in connectio~ 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, subject to the terms of any mortgage, deed or trust, or other security agreement with a lien which has priority over this mortgage. In the event of a total taking of the Property, the proceeds shall be appiied to the sums secured by this Security [nstrument, whether or not then due, with any excess paid to Borrower. 1n the event of a partial taking of the Property, untess 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 following fraction: ~ja) 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. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrowe~ fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and appty 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. 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 Borrower's successors in interest. Lender shait not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amoriization of the sums secured by this Security Instrument by reason of any demand made by the origina! 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 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 shali bind and benefit the successors and assigns of Lender and Bonower, 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 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 ihat Lender and any other Borrower may agree to extend, modify, forbear or make any accommoclations with regard to the terms of this Security Instrument or the Note without that Borrower's consent and without releasing that Borrower or impairing the lien of this Mortgage as to that Borrower's interest in the Property. 12. Loan Charges. lf the loan secured by this Security Instrument is subject to 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 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 permitied limit; and (b) any sums already coliected from Borrower which exceeded perrr~itted 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. !f a refund reduces principal, the reductian will be treated as a partiai prepayment without any prepayment charge under the Note. l3. Legislation Affeeting 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 full of all sums secured by this Security Instrument and may invoke any remedies permitted by paragraph 19. 14. n'otices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mai! unless applicable law requires use of another method. The notice sha11 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 oiher address Lender designates by notice to Borrower. Any notice provided for in this Security Insirument shal! be deemed to have been given to Borrower or Lender when given as provided in this paragraph. I5. Governing La~v; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdictian in which the Property is located. fn 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 Seeurity Instrument or the Note which 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 anc! of the Security Instrument. 17. Transfer of the Property or a B~eneficiai Interest in Borrower. If a!1 or any part of the Property or any interest in it is sold or transferred, whether by operation of law or otherwise, 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 [nstrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Securiry Instrument. ~~RK 675 FAGEIJ6~. __..._..~.__".'_'"____J . e.~.--. ~~r~~rl- _ "'_4.:i.~+' c...~-.-5_.~ ya:~...x"~uw++TL._F'."~e.,