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20000012�
<br /> � 5. Hazard or Property Insurance. Bonower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the terxn "extended coverage" and any other hazards, including
<br /> floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Bonower 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 shall 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 Bonower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall 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 lessened. If the restoration or
<br /> repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br /> secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds. Lender 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 begin when the notice is given.
<br /> Unless Lender and Bonower 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. If
<br /> under paragraph 21 the Property is acquired by Lender, Bonower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition sha11 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;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Bonower's principal residence within sixty days after the
<br /> execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one
<br /> year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld,
<br /> or unless extenuating circumstances exist which aze beyond Bonower's control. Borrower shall not destroy, damage or impair
<br /> the 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 pazagraph 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 Bonower's interest in the Property or other material
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Bonower sha11 also be in default if
<br /> Bonower, during the loan application process, gave materially false or inaccurate information or statements to Lender(or failed
<br /> to provide Lender with any material information) in connection with the loan 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 Bonower acquires fee title to the Property, the :
<br /> leasehold and the fee title sha11 not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lender's Rights in the Property. If Bonower fails to perform the covenants and agreements 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 /> procceding 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, appeazing in court, paying
<br /> reasonable attorneys' fees and entering on the Property to malce 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 pazagraph 7 sha11 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 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. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, 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, Bonower 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 insurance. Loss reserve :
<br /> Form 3028 9190
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