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06/21/99 MON 13:23 FAX 704 679 4500 EQUIFIRST 121 004
<br />REAEGIDIFI &D 99 106486
<br />200002726
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless 'Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the
<br />lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br />enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender, subordinating the lien to
<br />this Security instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over
<br />this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall Satisfy the lien or take one or
<br />more of the actions set forth above within 10 days of the giving of notice.
<br />S. Hazard or Property Insurance. Borrower shall keep the lmprovemenL4 now existing or hereafter erected on the
<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 shall be maintained in the amounts and
<br />for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to
<br />Lender's approval which shall not be unreasonably withheld. if Borrower fails to maintain coverage described above, Lender
<br />may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insurance policies and rcnewals shall be acceptable to lender and shall include a standard mortgage clause. Lendcr
<br />shall have the right to hold the policies and renewals. if Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. in the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />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 of
<br />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 doer not answer within ail days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then tender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the
<br />Property or to pay sums secured by this Security Instrument, whether or not then due. Tlie 30 -day period will begin when the
<br />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 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, 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. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after
<br />the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br />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 Borrowers control. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall
<br />he in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lenders good faith judgment
<br />could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instruinent or
<br />Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph IS, by causing the action
<br />or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Bonowees
<br />interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security
<br />interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate
<br />information or statements to Lender (or failed to provide, Lender with any material information) in connection with the loan
<br />evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a
<br />principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in
<br />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 right:% in the
<br />Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then
<br />Lender may do and pay for whatever Is necessary to protect the value of the Property and Lender's rights in the Property.
<br />Lender's actions may include paying any Sum.% secured by a lien which has priority over this Security Instruinent, appearing in
<br />court, paying reasonable attorneys' fees and entering on the Property to make repairs, Although Lender may take action under
<br />this paragraph 7, Lender does not have to do so.
<br />ITEM 1915 (974 (Puge 3 DO pages) Form 3114ti 91"
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