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202007 45
<br />coverage" and any other hazards including floods or flooding, for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. The insurance shall be chosen by Borrowers subject to Lender's approval which shall
<br />not be unreasonable 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
<br />with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a
<br />standard mortgage clause. Lender shall have the right to hold the policies and renewals. If
<br />Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier
<br />and 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
<br />applied to restoration or repair of the Property damaged, if the restoration or repair is
<br />economically feasible and Lender's security is not lessened. If the restoration or repair is not
<br />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
<br />paid to Borrower, If Borrower abandons the Property, or does not answer within 30 days' notice
<br />from Lender that the insurance carrier has offered to settle a claim, the Lender may collect the
<br />insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay
<br />sums secured by this Security Instrument, whether or not then due. The 30 -day period will
<br />begin when notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to
<br />principal shall not extend or postpone the due date of the monthly payments referred to in
<br />paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is
<br />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 extend of the sums secured
<br />by this Security Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property;
<br />Borrower's Loan Application; Leaseholds. Borrowers shall occupy, establish, and use the
<br />Property as Borrower's principal residence within sixty days after the execution of this Security
<br />instrument and shall continue to occupy the Property at Borrower's principal residence for at
<br />least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonable withheld, or unless extenuating circumstances exist which are
<br />beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the
<br />Property to deteriorate, or commit waste on the Property. Borrower shall be in default in any
<br />forfeiture action or proceedings, whether civil or criminal, is begun that in Lender's good faith
<br />judgement could result in forfeiture of the Property or otherwise materially impair the lien
<br />created by this Security Instrument or Lender's security interest. Borrower may cure such a
<br />default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be
<br />dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the
<br />Borrower's interest in the Property or other material impairment of the lien created by this
<br />Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower,
<br />during the loan application process, gave materially false or inaccurate information or statements
<br />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, representation concerning Borrower's
<br />occupancy of the Property as principal residence. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the leasehold and 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
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding
<br />that may significantly affect Lender's rights in the Property (such as proceeding in bankruptcy,
<br />probate, for condemnation or forfeiture or to enforce laws or regulations), the Lender may do and
<br />pay for whatever is necessary to protect the value of the Property and Lender's rights in the
<br />Property. Lender's actions may including paying any sums secured by a lien which has priority
<br />over this Security Instrument, appearing in court, paying reasonable attorney's fees and entering
<br />on the Property to make repairs. Although Lender may take action under this paragraph 7,
<br />Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of
<br />Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other
<br />terms of payment, these amounts shall bear interest from date of disbursement and the Note rate
<br />shall be payable, with interest, upon notice from Lender to Borrower requesting payment.
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