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200005'725 <br />LOAN #: 2910447 <br />5. 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 <br />hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This <br />insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender <br />requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. <br />The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to <br />disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require <br />Borrower to pay, in connection with this Loan, either: (a) a one -time charge for flood zone determination, <br />certification and tracking services; or (b) a one -time charge for flood zone determination and certification <br />services and subsequent charges each time remappings or similar changes occur which reasonably might <br />affect such determination or certification. Borrower shall also be responsible for the payment of any fees <br />imposed by the Federal Emergency Management Agency in connection with the review of any flood zone <br />determination resulting from an objection by Borrower. <br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance <br />coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any <br />particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not <br />protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard <br />or liability and might provide greater or lesser coverage than was previously in effect. Borrower <br />acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of <br />insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall <br />become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at <br />the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender <br />to Borrower requesting payment. <br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's <br />right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as <br />mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal <br />certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and <br />renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for <br />damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall <br />name Lender as mortgagee and/or as an additional loss payee. <br />In the event of loss, Borrower shall give prompt notice to the insurance carver and Lender. Lender may <br />make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in <br />writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be <br />applied to restoration or repair of the Property, if the restoration or repair is economically feasible and <br />Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to <br />hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work <br />has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. <br />Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress <br />payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires <br />interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or <br />earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be <br />paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is <br />not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to <br />the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to <br />Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. <br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim <br />and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance <br />carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30 -day period will <br />begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or <br />otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount <br />not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's <br />rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance <br />policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender <br />may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the <br />Note or this Security Instrument, whether or not then due. <br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence <br />within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as <br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise <br />agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances <br />exist which are beyond Borrower's control. <br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not <br />destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. <br />Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent <br />the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to <br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly re the Property if <br />� 1 <br />Initials: ,V <br />4= 6A(NE) (ggo5).o2 CHL (03/00) Page 5 of 11 Form 3028 3/99 <br />