|
5. Hazard or Property Insurance. Bonower shall keep the improvements now existing or'heOr OfteOr VereOct�d ori he
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including :
<br /> floods or flooding, for which Lender requires insurance. This insurance sha11 be maintained in the amounts and for the periods :
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval :
<br /> which sha11 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 /> sha11 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, Bonower sha11 give prompt notice to the insurance carrier and Lender. :
<br /> Lender may make proof of loss if not made promptly by Borrower. :
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds sha11 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 swns
<br /> secured by this Security Instruxnent, whether or not then due, with any excess paid to Bonower. 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 Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or :
<br /> postpone the due date of the monthly payrnents referred to in paragraphs 1 and 2 or change the amount of the payrnents. If :
<br /> under paragraph 21 the Property is acquired by Lender, Borrower'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. Bonower sha11 occupy, establish, and use the Property as Borrower'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 are beyond Borrower's control. Borrower shall not destroy, damage or impair
<br /> the Property, a11ow the Property to deteriorate, or comxnit 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 paragaph 18, by causing the action or proceeding to be dismissed with a ruling :
<br /> that, in Lender's good faith determination, precludes forfeihue of the Borrower's interest in the Property or other material :
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if :
<br /> Borrower, 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 Bonower's occupancy of the Property as a principal residence. If this Security Instrument is on a
<br /> leasehold, Borrower shall comply with a11 the provisions of the lease. If Borrower acquires fee title to the Property, the
<br /> leasehold and the fee 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 contained in :
<br /> this Security Instruxnent, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a :
<br /> proceeding 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, appearing in court, paying
<br /> reasonable attorneys' fees and entering on the Property to make 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 paragraph 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, Borrower sha11 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 302 91
<br /> �•BR(NE) lazt2l.aa Page 3 of 6 Ini els:
<br /> �
<br /> �_,
<br /> �_,
<br />
|