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Loan No: 99-0259 2 O O O O O s t� ,� Data ID: 916
<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
<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 e�rist which are beyond Borrower's control. Borrower shall
<br /> not 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 remstate, as provided in paragraph 18,
<br /> by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes
<br /> forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security
<br /> Instrument or Lender's security interest. Borrower shall also be in default if Borrower,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
<br /> shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee
<br /> 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 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 Property and 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 Instrument,
<br /> appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender
<br /> may take action under th�s 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
<br /> this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest
<br /> from 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
<br /> this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for
<br /> any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay
<br /> the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect,at a cost
<br /> substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,from an alternate mortgage
<br /> insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay
<br /> to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower
<br /> when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a
<br /> loss reserve in lieu of martgage insurance. Loss reserve payments may no longer be required, at the option of Lender,
<br /> if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved
<br /> by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage
<br /> insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with
<br /> any written agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender
<br /> shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages,direct or consequential,in connection with
<br /> any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby
<br /> assigned and shall be paid to Lender.
<br /> In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br /> Instrument, whether or not then due,with any excess paid to Borrower. In the event of a partial taking of the Property
<br /> in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of
<br /> the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree
<br /> in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the
<br /> following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market
<br /> value of the Property unmediately before the taking. Any balance shall be paid to Borrower. In the event of a partial
<br /> taking of the Property in which the fair market value of the Property immediately before the taking is less than the
<br /> amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or
<br /> unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument
<br /> whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers
<br /> to make an award or settle a claim for damages, Borrower faiLs to respond to Lender within 30 days after the date the
<br /> notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the
<br /> Property or to the sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such
<br /> payments.
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in
<br /> interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest.
<br /> Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for
<br /> payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made
<br /> by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or
<br /> remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements
<br /> of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the
<br /> provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who w-
<br /> signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage,
<br /> grant and convey that Borrower's interest in the Property under the terms of th�s Security Instrument; (b) is not personally
<br /> obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may
<br /> agree to extend, modify,forbear or make any accommodations with regard to the terms of this Security Instrument or the
<br /> Note without that Borrower's consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan
<br /> charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in
<br /> connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount
<br /> necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded
<br /> permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed
<br />" under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated
<br /> as a partial prepayment without any prepayment charge under the Note.
<br /> Form 3028 9/90 (Page 3 of 5 Pages)
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