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2�U0�0�98 � »os�a-s
<br /> 5.Hazard or Property Insurance. Bonower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that I.ender
<br /> requires. The insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall not
<br /> be unreasonably withheld. If Bonower fails to maintain coverage described above, Lender may, at L.ender's option, obtain
<br /> 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 shall
<br /> have the right to hold the policies and renewals. If Lender requires, Bonower shall prompdy give to Lender all receipts of paid ;
<br /> premiums and renewal notices. In the event of loss,Bonower shall give prompt notice to the insurance carrier and Lender.Lender ° '
<br /> may make proof of loss if not made prompdy by Borrower. •�•
<br /> Unless Lender and Bonower 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 [his 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 secured •
<br /> by this Security Instrument,whether or not then due.The 30-day period will begin when the notice is given. ,
<br /> Unless I.ender and Bonower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone
<br /> the due date of the monthly payments referred to in pazagraphs 1 and 2 or change the amount of the payments.If under paragraph
<br /> 21 the Property is acquired by Lender, Bonower's right to any insurance policies and proceeds resulting from damage to the
<br /> Property prior to the acquisition shall pass to L.ender to the extent of the sums secured by this Security Instrument immediately
<br /> prior to the acquisition.
<br /> 6.Occupancy,Preservation,Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br /> Borrower shall occupy, establish, and use the Property as Bonower's principal residence within sixty days after the execution of
<br /> this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the
<br /> date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Bonower's control. Borrower shall not destroy,damage or impair the Property,
<br /> allow the Property to deteriorate> or commit waste on the Property. Bonower shall be in default if any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or
<br /> otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a
<br /> default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in
<br /> Lender's good faith determination,precludes forfeiture of the Borrower's interest in the Property or other material impairment of
<br /> the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower,during the
<br /> loan application process,gave materially false or inaccurate information or statements to Lender(or failed to provide Lender�vith
<br /> any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br /> concerning 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 Bonower acquires fee title to the Property,the leasehold and the fee title shall
<br /> 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 /> proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),then L.ender may do and pay
<br /> for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include
<br /> paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable
<br /> attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender
<br /> does not have to do so.
<br /> Any amounts disbursed by Lender under this pazagraph 7 shall become additional debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and L.ender agree to other terms of payment, these amounts shall bear interest from the date of
<br /> disbursement at the Note rate and shall be payable,with interest,upon notice from Lender to Borrower requesting 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 Bonower 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 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�90
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