attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including <br />its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, <br />entering the Property to snake repairs, change locks, replace or board up doors and windows, drain water <br />from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned <br />on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not <br />under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all <br />actions authorized under this Section 9. <br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower <br />secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of <br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting <br />payment. <br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the <br />lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless <br />Lender agrees to the merger in writing. <br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, <br />Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, <br />the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that <br />previously provided such insurance and Borrower was required to make separately designated payments <br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain <br />coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially <br />equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate <br />mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not <br />available, Borrower shall continue to pay to Lender the amount of the separately designated payments that <br />were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these <br />payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be <br />non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be <br />required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss <br />reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) <br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires <br />separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage <br />Insurance as a condition of making the Loan and Borrower was required to make separately designated <br />payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to <br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's <br />requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and <br />Lender providing for such termination or until termination is required by Applicable Law. Nothing in this <br />Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. <br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it <br />may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage <br />Insurance. <br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may <br />enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements <br />are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to <br />these agreements. These agreements may require the mortgage insurer to make payments using any source <br />of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage <br />Insurance premiums). <br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsures, <br />any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that <br />derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in <br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement <br />provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the <br />premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: <br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for <br />Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount <br />Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. <br />ioniais: <br />-6(OR) 10 704).01 Page a of 15 Form 3038 1/01 <br />