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`00006887
<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 rnainWned in the amounts and for Chu periods
<br />that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br />which shall not be unreasonably withheld. Ir Borrower fails to maintain coverage described above, Lender may, at Lender's
<br />option, obtain coverage to protect Lender's rights in the Property its accordance with paragraph 7_
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard wortgagc clause. Lender
<br />shall have the right to hold the policies anti renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may matte proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower vthrrwise agree in writing, insurance proceeds shalt 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 this Security Instrumcnt, whether or not then duc, with dny 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 surtts
<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, 5vrruw(;r'5 right to any insurance policies and proceeds resulting from
<br />damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument
<br />immediately prior to the acquisition.
<br />6. Occupancy, Prmervation, 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 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 t tvmcnt 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, allow the Property to deteriorate, or commit 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 ,�vk)d faith judgment could result in forfeiture of the
<br />Property or otherwise materially impair the Iien created by this Security Instrument or Lender's security interest_ Borrower may
<br />cure such a default and reinstate. as provided in paragraph IS, by causing the action or proceeding to be dismissed with a ruling,
<br />that, in Lender's good faith determination, precludes forfeiture of the Borrvwer's interest in the Property or other material
<br />impairment of the Iien 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, includiug, but not limited
<br />to, rcprascntations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a
<br />leasehold, Borrower shall comply with all 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 its the Property, If Borrower 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 enforcc laws or regulation), 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 tilis paragraph
<br />7, Lender does oat 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 disburstanent 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 />Instrurmcnt, 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 mortgugc 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 insurancc 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 9190
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