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<br /> - 98- �12��38
<br /> 5. NAUtrd or Pn►perty InsurWnce. &�rrower tihall kecp thc improvements now existing or hereafter crected on th�
<br /> Pru�eny insurul against loss by fire, ha�.urds included within the term "extended covcragc" �nd a:�y other ha7.ards, including
<br /> ilcxxlw nr Ilcxxling, for which I..cncler requires insuriincc. This inxurancc shall hc maintnincd in nc�amounts nnd f'or the periods
<br /> thal l.eixlcr requires, The insurunce currier providing the insurunce shull he chnsen by Borrower subject to Lender's nppraval
<br /> which shull nat be unrcusanably wi�hhcld. If Fiormwcr fuils to maintuin cc�vcrage describ�d ubove, [Andcr muy, xt Lcnder's
<br /> optiun,uMain covoruge to protect L,erxler's rights in 1he Property in uccordnnce wilh ps�ragraph 7.
<br /> All insurunce palicies erxl rcncwuls shall bc acceptnblc ta L.ender nnd shall inch�de a standard mongnge clause. Leixter
<br /> shall have the right to hnld thc policies und renewals. If Letder requires,Rarrower shnll promptly givc w Lender all rcccipts of
<br /> puid premiums u�xl renewal �x�tices. ln ths avenl of ioss,Burrower shull give prompt nodce io the insuranCe carrier and[.,ender.
<br /> l.cncler n�uy muke prcx�f uf loss if not macle promptly by Borrower.
<br /> Unless Lx�xler aixl Rc�rrower othenvise agree in writing, insurance procecds shull be uppliecf to restoration or repair of the
<br /> Property damuged,iF thc restoratian or repair is economically feasible and l..cnder's security is not lessened. If the restaration or
<br /> repair is not econon�ically feasible or Lender's security would bc Icsscnal, thc insu�ancc prc�ceecfs shall be applial to the sums
<br /> secured by this Security lnstrument, whether nr nat then due, with any excess paid to Iiorrower. If Borrower abandons the
<br /> Praperty, or does not answer wlthin 30 days a notice from I.ender th�t the insurance carrier has offered to settle a claim. then
<br /> Lender may collect the insurance proceeds. l.rnder may use the proceeds to repair or restore the Property or to pay sums
<br /> secured by this Security Instrument,whether or not then due.The 30-day period will lxgin when tha natice is given.
<br /> Unless L,ender anJ Borrower otherwise agra in writfng, any application of prceecds to principul shall not extend or
<br /> postpone the Jue datc of the monthly pflyrnents referrcd to in paragraphs 1 and 2 or chunge the amount of the payments. If
<br /> under paragroph 21 the Property is acyuired by Lender,Borrower's right to any insurance policies snd procceds resulting from
<br /> damage to the Prope»y prior to the acquisltion shall pass to l.ender to the extent of the sums secured by this Securlty Instrument
<br /> immedietely prior to the acquisition.
<br /> (,,pccupancy,PreservaUon,Mainten�nce And Pmtection of the Property;Borrower's Loan Applicntiun;Le�sef�o�ds�
<br /> Horrower shall occupy,establish,and use the Properxy as Eorrower's prir�cipal residena within sixty days after the execution of
<br /> this Sccurity Instrutnent and shall continue to occupy th� Property as Borrower's principal residence for at least one year sfter
<br /> the date of occupancy, unless Lender otherwise agras in wrcting, which consent shall not be unreasor►ably withheld,or unless
<br /> extenuat[ng circumstances exist which are bey�nd Borcower's control. Bonower shall not destroy, damage or itnpair the
<br /> Property, allaw the Prop�rty to dcteriorate, ur commit waste on the Property. Borrower shall be in default if any forfeitun
<br /> action or procc�eding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the
<br /> Prapeny or otherwiso materially impair the lien crcated by this Security Instn�ment or Lender's sxurity intercst. Borrower may
<br /> cun such a default and reinstate,as providod in paragraph 18,by causing 1he action or praceeding to be dismissed with a ruling
<br /> that, in I.ender's good faith determination, precludes furfeiturc of the Borrower's interet in the Pmperty or other rnatecial
<br /> imnaimxnt of thc lien creatal by this Security Instrument or L.ender's security interest. Bortower shall also be in dafsult if
<br /> Bonower,during the loan application process,gave metecidly false or lnaccurate iniomtiaiiun ur siuieii�i�is ta L:.sK1:,r(or f�il�
<br /> ta provide Lender with eny material information)in connection with the loan evidenced by the Note, including,but not limited
<br /> to, representations concerning Borrowor's occupancy of the Property as a principal residence. If this Secs►rity Instntment is on a
<br /> lu+sehold, Borrower shall comply with all the provisians of the lease. If Horrower acquires fa tltle to the Property, the
<br /> leasehold and the fee title shal!not merge unl�s I.ender ag�s to the merger in writing.
<br /> 7,Protection of I.ender's Rlghts in the Property. If}3orrower fails to perform the covenants and ugraments conutinai in
<br /> this Security Instrument, or there is a legal proceeding that may significantly aff�xt Lender's rights in the Propercy (such a5 a
<br /> procading in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and
<br /> pay for whatever is nocessary to protect the value of the Property and Lender's rights in the Praperty. I.ender's actions may
<br /> include paying any sums secured by a lien which has pciority over this Security Instrument, appearing in court, p4ying
<br /> reasonable attumeys' fees and entering on the Property to make repairs.Although Lender may take action under this pa�'agraph
<br /> 7, Lenda does not have ta do so.
<br /> Any amounts disbursed by L,ender under this paragraph 7 shall becmne ndditional debt of Borrower secumi by this
<br /> Security Instrument. Unless Bonower�nd Lender agrce to other terms of payment. these amounts shall bear interest from the
<br /> date of disbursement at the Note rate and shall bc payable, w:th interest, upon notice from Lcnder to Borrower roquestiug
<br /> payment,
<br /> S.Mortgage Insurstnce. If Lender required mortgage insurance as a condition of making the loan�ecurod by this Socurity
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortguge insurance in effcct. If, for uny reason, the
<br /> mortgage insurance coverAge required by Lender lapses or ce:ues to be in effect,Borrower shall pay the premiums requiral 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 mortgagc 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 tnonth a su►n equal to
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Barrower when the insurance coverage lapsal or ceasod to
<br /> be in effect. Lender will ar,cept,use and retain these payments as a loss reserve in licu of mortgage insurance. Loss reserve
<br /> Form 302tl 8/80
<br /> v,o.soie
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