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<br />5. Hazan:! or Property Insurance. Borrower shall keep the improvements rww existing or hereafter erected on the
<br />Property insured against loss by fire. hazards induded within the tenn -extended coverage- and any other hazards, including
<br />floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amQUnts and for the periods
<br />that Lender requires. The insurance carrier providing the imtll'lUJCe shall be chosen by Borrower subject to Lender's approval
<br />which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above. Lender may. at Lender's
<br />option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insurance policies and renewals shilll be acceptable to 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
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and lender.
<br />Lender may make proof of loss if not made promptly by Borrower. .'
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds !ball be applied to restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessenad. If the restoration or
<br />repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shtlll be applied to the sums
<br />secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Bprrower abandons the
<br />Property, or does not answer within 30 days a notice from lender that the insurance carrier has offered to seltle a claim. then
<br />Lender milY collect the insurance proceeds. lender fIl3Y use the proceeds to !'ep~!" or restore the Property or to pay sums
<br />secured by this Security Instrument. whether or not then due. The 3Q-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 extend or
<br />postpone the due date of the monthly pay.ments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 21 the Property is 3Cquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br />damage to the Property prior to the acqUIsition shall pass to lender to the extent of the sums secured by this Security Instrument
<br />immediately prior to the acquisition.
<br />6. Occupancy. Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholdos.
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of
<br />this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for 1ft least one year after
<br />the date of occupancy, unlcs'<; Lender otherwise agrees in writing, which consent shall not be unreasoDiblywithheld, or unless
<br />extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy; damage or impair the
<br />Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture
<br />action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the
<br />Property or otherwise materially impair the lien created by this Security Instrument or Lender's security 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 good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material
<br />impairment of the lien created by this Security Instrument or lender's security intert".st. Borrower shall also be in default if
<br />Borrower, during the loan application proc.ess, gave materially false or inaccurate information or statements to Lender (or failed
<br />10 provide Lender with any material information) in connection with the 100m evidenced by the Note. including, but not limited
<br />to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a
<br />leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />lea..v;hold 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 Igieements 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 Property and Lender's rights in the Property. Lender's actions may
<br />include paying any sums secured by a lien which has priority over this Security Instrument, appearing in COUrt, paying
<br />.. reasonable attome)'s' 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 />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 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. Mort~al:e IIl.';urance. If Lender required mortgage insurance as a condition of making the lo~ecured by this Security
<br />Instrument. Borrower shall pay the premiums required to maintain the mortgage insurance in effect~ \(. 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 />obtain 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 Borrower when the insurance coverage lapsed or ceased to
<br />be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insuranc::. Los5 reserve
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