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200005399
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements 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 for the
<br />periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
<br />approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at
<br />Lender's 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
<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 the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration
<br />or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the
<br />sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons
<br />the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim,
<br />then 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 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 unreasonably
<br />withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in
<br />default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could
<br />result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's
<br />security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or
<br />proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's
<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
<br />in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained
<br />in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as
<br />a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do
<br />and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions
<br />may 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
<br />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 this
<br />Security Instrument. Unless Borrower 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 />GV2023 -3 (page 3 of 7pages) Form 3028 9/90
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