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<br /> 204000,02�. , ., �.
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<br /> All;n�,*�*+ce policies and renewals shail 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 sha11 pmmpdy give to Lender all
<br /> receipts of paid premiums and renewal notices. In the event of loss, Bortower shall give prompt nodce to the insutance
<br /> carrier and Lender.Lender may make proof of loss if not made promptly by Bortower.
<br /> Unless Lender and Borrower otherwise agree in writing,insurance proceeds sha11 be applied to restoradon or repair of
<br /> t6e 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 feaslble or Lender's security would be lessened,the insutance proceeds shall be
<br /> applied to the sums secured by this Security�'Inst�ument,whether or not then due, with any excess paid to Borrower. If
<br /> Bortower abandons the Ptoperty,or does not answer within 30 days a notice from Lender that the insurance cazrier has
<br /> offered to setde a claim,then Lender may collect the inc„rance proceeds.Lender may use the proceeds to repair or restore the
<br /> Property or to pay sums secured by this Security Instrument,whether or not then due.The 30-day period will begin when the
<br /> nodce is given.
<br /> Unless L.ender and Borrower otherwise agrec itt writing,any applicadott of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly payments referted to in paragraphs 1 and 2 or change the amount of t6e payments.ff
<br /> under pazagraph 21 t6e Ptoperty is acquired by Lettder,Borrower's right to any inm,rAnce policies and proceeds resulting
<br /> from damage to the Ptoperty prior to the acquisidon sha11 pass to I.ender 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 after
<br /> the execution of this Secutity Instr�ment aud shall continue to occupy the Ptoperty as Borrower's principal residence for at
<br /> least one year after the date of occupancy, unless L.ender otherwise agrees in writing, which consent shall not be
<br /> unreasonably withheld,or unless extenuating circumstances exist which are beyond Bortower's control.Borrower shall not
<br /> destroy,damage or impair the Ptoperty,allow We Ptoperty to deteriorate,or commit waste on the Property.Bortower sha11
<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 materially impair the lien created by this Security Instrument or
<br /> Lender's security interest.Borrower may cure such a default and reinstate,as provided in patagraph 18,by causing the acdon
<br /> or procceding to be dismissed with a ruling that,in Lender's good faith determinadon,precludes forfeiture of the Bortower'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 Bortower,during the loan applicaflon process,gave materially false or inaccurate
<br /> information or statements to Lender(or failed to provide Lender with any material information)in connection with the loan
<br /> evidenced by the Note,including,but not limited to,representations concerning Borrower's occupancy of the Property as a
<br /> principal residence.If this Security Instrumcnt is on a leasehold,Borrower shall comply with all the pmvisions of the lease.
<br /> If Bortower acquires fee dde to the Property,the leasehold and the fee dde sha11 not merge unless L.ender agrees to We
<br /> merger in writing.
<br /> 7. Protection o[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 significandy affect Lender's rights in the
<br /> Property(such as a proceeding in banlmiptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),then
<br /> Lender may do and pay for whatever is necessary to pmtect the value of the Ptoperty and I.ender's rights in the Property.
<br /> I.ender's actions may include paying any sums secured by a lien which has priority over this Security Instn�ment,appearing
<br /> in court,paying reasonable attorneys'fees and entering on the Ptoperty to malce repairs.Although I.ender may take acdon
<br /> under this pazagraph 7,Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this patagraph 7 shall become addidonal debt of Borrower secuted by this
<br /> Security Instcument.Unless Botrower and L.ender agree to other terms of payment,these amounts shall bear interest from the
<br /> date of disbutsement at the Note rate and shall be payable,with interest,upon nodce from I.ender to Borrower requesting
<br /> payment.
<br /> 8. Mortgage Insurance.lf L.ender requireci mortgage insurance as a condidon uf making the loan secured by this
<br /> Security Instrument, Boaower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any
<br /> reason, the mortgage insutance coverage required by Lender lapses or ceases to be in effect, Bortower shall pay the
<br /> premiums requited to obtain coverage substandally equivalent to the mortgage insurance previously in effect, at a cost
<br /> substandally equivalent to the cost to Borrower of the mortgage insutance previously in effect,from an alternate mortgage
<br /> insurer approved by Lender.If substantially equivalent mortgage insurance coverage is not available,Borrower sha11 pay to
<br /> L.ender each month a sum equal to one-twelfth of the yearly mortgage insutance premium being paid by Bortower when the
<br /> insurance coverage lapsed or ceased to be in effect.Lender will accept,use and retain these payments as a loss reserve in lieu
<br /> of mortgage insurance. Loss reserve payments may no longer be required,at the option of Lender,if mortgage insurance
<br /> coverage(in the amount and for the period that Lender requires)provided by an insurer appmved by Lender again becomes
<br /> available and is obtained.Borrower sha11 pay the premiums required to maintain mortgage insurance in effect,or to provide a
<br /> loss reserve,undl the requirement for mortgage insurance ends in accordance with any written agreement between Borrower
<br /> and Lender or applicable law.
<br /> Pag�3 of 7
<br /> NE-20740E99
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