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<br /> from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br /> Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br /> after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence
<br /> for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br /> unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not
<br /> destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall
<br /> be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment
<br /> could result in forfeiture of the Property or otherwise materialiy impair the lien created by this Security Instrument or Lend-
<br /> er's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or
<br /> proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's
<br /> interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security
<br /> interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccur-
<br /> ate information or statements to Lender (or failed to provide Lender with any material information) in connection with the
<br /> loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property
<br /> as a principal residence. 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 Lender agrees
<br /> to the merger in writing.
<br /> 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br /> contained in the Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Pro-
<br /> perty (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then
<br /> Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property.
<br /> Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in
<br /> court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action un-
<br /> der this paragraph 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Bonower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br /> the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower request-
<br /> ing payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any
<br /> reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the pre-
<br /> miums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substan-
<br /> tially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer
<br /> approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender
<br /> each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insur-
<br /> ance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of
<br /> mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance cov-
<br /> erage (in the amount and for the period that Lender requires)provided by an insurer approved by Lender again becomes
<br /> available and is obtained. Borrower shail pay the premiums required to maintain mortgage insurance in effect, or to pro-
<br /> ��ide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between
<br /> Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall
<br /> give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br /> any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assign-
<br /> ed and shall be paid to Lender.
<br /> In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security In-
<br /> strument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which
<br /> the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums se-
<br /> cured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the
<br /> sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction:
<br /> (a)the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property
<br /> immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in
<br /> which the fair market value of the Property immediately before the taking is less than the amount of the sums secured im-
<br /> mediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise pro-
<br /> vides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to
<br /> make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice
<br /> is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property
<br /> or to the sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds [o principal shall not extend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. �
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest �
<br /> of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender �
<br /> shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or �
<br /> otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the origin- '
<br /> al Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be
<br /> a waiver of or preclude the exercise of any right or remedy.
<br /> 242019(1/each rev01)(12/95)[20193] Form 3028 9/90 (page 3 of 6 pages)
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