|
- 2000000 �.2. , . �
<br /> including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and
<br /> for the periods that Lender requires. T'he insurance carrier providing the insurance shall be chosen by Bonower subject to
<br /> Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above,
<br /> Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with pazagraph
<br /> 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, Bonower shall promptly give to Lender
<br /> all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br /> 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 cazrier has
<br /> offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br /> the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
<br /> when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of praceeds tc principal shall not extend or
<br /> postpone the due date of the monthly payments refened to in paragraphs 1 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
<br /> from damage to the Property prior to the acquisition shall pass to Lender 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. Bonower 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 residence
<br /> for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br /> unreasonably withheld, or unless extenuating circumstances exist which are beyond Bonower's control. Borrower shall not
<br /> destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower
<br /> shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith
<br /> judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security
<br /> Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by
<br /> causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes
<br /> forfeiture of the Bonower's interest in the Property or other material impairment of the lien created by this Security
<br /> Instrument or Lender's security interest. Bonower shall also be in default if Bonower, during the loan application process,
<br /> gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br /> information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning
<br /> Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall
<br /> comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title
<br /> 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 regulations),
<br /> then Lender may do and pay for whatever is necessary to protect the value of the Prope�ty ard Lender's rights in the
<br /> Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br /> Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br /> 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 Bonower and Lender agree to other terms of payment, these amounts shall bear interest from
<br /> 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 Bonower of the mortgage insurance previously in effect, from an altemate mortgage
<br /> insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Bonower shall pay
<br /> to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Bonower when
<br /> the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve
<br /> in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage
<br /> insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender
<br /> again becomes available and is obtained. Bonower shall pay the premiums required to maintain mortgage insurance in
<br /> effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written
<br /> agreement between Borrower and Lender or applicable law. Form 3028 /90 �paye f sl
<br /> BANKERS SYSTEMS,INC.,ST.CLOUD,MN 56302(1-800397-2341)FORM MD-1-NE 2/5/91 � "'�Y'�
<br /> �
<br />
|