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<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existin herea ter erected on
<br /> the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br /> including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br /> �and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower
<br /> subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described
<br /> above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with
<br /> paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br /> Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the
<br /> insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing,insurance proceeds shall be applied to restoration or repair
<br /> of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br /> restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br /> applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower.If
<br /> Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br /> offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br /> restore the Property or to pay sums secured by this Security Instrument,whether or not then due. The 30-day period will
<br /> begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing,any application of proceeds to 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 the payments.
<br /> If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds
<br /> resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by
<br /> this Security 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
<br /> residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall
<br /> not be unreasonably withheld,or unless extenuating circumstances exist which are beyond Borrower's control. Borrower
<br /> shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property.
<br /> Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's
<br /> good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this
<br /> Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in
<br /> paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br /> determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien
<br /> created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during
<br /> the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to
<br /> provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not
<br /> limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br /> Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to
<br /> the Property,the leasehold and the fee title shall not merge unless Lender agrees 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 this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br /> Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or
<br /> regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's
<br /> rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this
<br /> Security Instrument,appearing in court, paying reasonable attorneys'fees and entering on the Property to make repairs.
<br /> Although Lender may take action under 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 Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest
<br /> from the date of disbursement at the Note rate and shall be payable, with interest,upon notice from Lender to Borrower
<br /> requesting 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
<br /> premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect,at a cost
<br /> substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate
<br /> mortgage insurer approved by Lender. If substantially equivalent mortgage insi�rance coverage is not available,
<br /> Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being
<br /> paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these
<br /> payments as a loss reserve in lieu of mortgage insurance. �oss reserve payments may no longer be required,
<br /> �-6H(NE►�saoai.o� P�90 3 of s Form 3028 9/
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