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<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 paragraph 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 from
<br />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 unreasonable
<br />withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage
<br />or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any
<br />forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in
<br />forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security
<br />interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to
<br />be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the
<br />Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower
<br />shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or
<br />statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the
<br />Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires
<br />fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br />contained in the Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property
<br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), the Lender
<br />may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's
<br />actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court,
<br />paying 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 />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br />Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any
<br />reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums
<br />required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially
<br />equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved
<br />by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month
<br />a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage
<br />lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage
<br />insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the
<br />amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is
<br />obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br />until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or
<br />applicable law.
<br />9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give
<br />Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and
<br />shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair
<br />market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this
<br />Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured
<br />by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total
<br />DOCUINE3 Page 3 of 6 Form 3028 9/90
<br />D0CUINE3.VTX 05/02/2000
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