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at any time thereafter,become immediately due and payable without further notice to the
<br /> Borrower and that thereupon the Lender shall have the right immediately to foreclose this
<br /> mortgage.
<br /> 6. Protection of Lender's Security. If Borrower fails to perform the covenants and
<br /> agreements contained in this Mortgage, or if any action or proceeding is commenced which
<br /> affects the Property or title thereto or the interest of Lender therein, including,but not
<br /> limited to, eminent domain,insolvency, code enforcement or arrangements or proceedings
<br /> involving a bankrupt or decedent,then Lender,at Lender's option, may make such
<br /> appearances, disburse such sums and take such action as Lender deems necessary, in its
<br /> sole discretion,to protect Lender's interest, including,but not limited to, (i) disbursement
<br /> of attorney's fees, (ii) entry upon the Property to make repairs,and (iii) procurement of
<br /> satisfactory insurance as provided in paragraph 1 hereof.Any amounts disbursed by
<br /> Lender pursuant to this paragraph shall become additional indebtedness of Borrower
<br /> secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment,
<br /> such amounts shall be immediately due and payable and shall bear interest from the date of
<br /> disbursement at the Event of Default rate stated in the Note unless collection from
<br /> Borrower of interest at such rate would be contrary to applicable law,in which event such
<br /> amounts shall bear interest at the highest rate which may be collected from Borrower
<br /> under applicable law. Nothing contained in this paragraph shall require Lender to incur any
<br /> expense or take any action hereunder.
<br /> 7. Inspection; Records Retention. Lender may make or cause to be made reasonable
<br /> entries upon and inspections of the Property. Borrower shall keep and maintain at all times
<br /> complete and accurate books of accounts and records adequate to reflect correctly the
<br /> results of the operations of the Property, in compliance with all local and federal HOME
<br /> program regulations, and fully comply with the HOME Agreement. Such books and records
<br /> shall be subject to examination and inspection at any reasonable time by Lender.
<br /> 8. Condemnation. Borrower shall promptly give written notification to Lender of any
<br /> action or proceeding relating to any condemnation or other taking,whether direct or
<br /> indirect, of the Property, or part thereof, and Borrower shall appear in and prosecute any
<br /> such action or proceeding unless otherwise directed by Lender in writing. Borrower
<br /> authorizes Lender, at Lender's option,as attorney in fact for Borrower,to commence,
<br /> appear in and prosecute, in Lender's or Borrower's name,any action or proceeding relating
<br /> to any condemnation or other taking of the Property,whether direct or indirect, and to
<br /> settle or compromise any claim in connection with such condemnation or other taking. The
<br /> proceeds of any award or payment or claim for damages,direct or consequential, in
<br /> connection with any condemnation or other taking,whether direct or indirect, of the
<br /> Property, or part thereof, or for conveyances in lieu of condemnation,are hereby assigned
<br /> to and shall be paid to Lender. j
<br /> Borrower authorizes Lender to apply such awards, payments, proceeds or damages, after
<br /> the deduction of Lender's expenses incurred in the collection of such amounts,at Lender's
<br /> option,to restoration or repair of the Property or to payment of the sums secured by this
<br /> Mortgage,whether or not then due,with the balance, if any,to Borrower.
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