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�. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br /> floods'or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periodsCfl
<br /> chat Lender requires. 1'he insurance cazrier providing the insurance shall be chosen by Borrower subject to Lender's approval00
<br /> which shall noc be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at L.ender's�
<br /> op[ion, obtain coverage to protect Lender's rights in the Properry in accordance with paragraph 7. �
<br /> All insurance policies and renewals shall be acceptable co Lender and shall include a standard mortgage clause. Lender �
<br /> shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of�i
<br /> paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. C�
<br /> Lender may make proof of loss if not made promptly by Borrower. w
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the0%
<br /> Properry damaged, if the restoration or repair is economically feasible and Lender's securiry is not lessened. If the restoration or
<br /> repair is not economically feasible or Lender's securiry would be lessened, the insurance proceeds shall be applied to the sums
<br /> se:;ured by this "Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Properry, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may collect che insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br /> secured by this Securiry Instrument, whether or not then due. The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eztend or
<br /> postpone the due date of the monthly payments referred to in pazagraphs l and 2 or change the amount of the payments. If
<br /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br /> damage to che Property prior to the acquisition shall pass to Lender to the eztent of[he sums secured by this Security Instrument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, �faintenance and Protection of the Property; Borrower's Loan application; Leaseholds.
<br /> Borrower shal�occupy, establish, and use the Properry as Borrower's principal residence within sizty days after the execution of
<br /> this Securiry Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after
<br /> che date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> e�tenuating circumstances e�ist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br /> Property, allow the Properry to deteriorate, or commit waste on the Propeny. Borrower shall be in default if any forfeiture
<br /> accion or proceeding, whether civil or criminal, is begun that in Lender's good faith judgmen[ could result in forfeiture of the
<br /> Properry or otherwise materially impair the lien created by this Security Inscrument or Lender's securiry interest. Borrower may
<br /> cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling
<br /> that, in Lender's ;ood faith de[ermination, precludes forfeiture of che Borrower's interest in the Properry or other material
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br /> Borrower, during che loan application process, gave materially false or inaccurate information or statements to Lender(or failed
<br /> co provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited
<br /> to, representations concernin Borrower's occu anc of the Pro e
<br /> g p y p rty as a prmctpal residence. If this Security Instrument is on a
<br /> leasehold, Bonower shall comply with all the provisions of the lease. If Bonower acquires fee title to the Properry, the
<br /> leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lender's Righks in the Property. If Borrower fails to perform che covenants and agreements contained in
<br /> this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and
<br /> pay for whatever is necessary to protect the value of the Properry and Lender's rights in the Property. Lender's actions may
<br /> include paying any sums secured by a lien which has prioriry over this Security Instrument, appearing in court, paying
<br /> reasonable attomeys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph
<br /> 7. Lender does not have to do so.
<br /> r�ny amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amouncs shall bear interest from the
<br /> date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting
<br /> payment.
<br /> 8. blortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the •
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to °
<br /> obcain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If � '
<br /> substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to ,�,,,�
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Bqrrower when the insurance coverage (apsed or ceased to '
<br /> be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
<br /> Form 3028 9/90
<br /> ��6R(NE) iezi Zi.oz Page 3 of 6
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