|
:i. HAZatrd or Property lnsurnnc�. Borrower shall keep the improvements now existing or hereafter erected on thc
<br /> ProNerty insured agair_st Iass by fi�e, hazards included within the tcrm "extended coverage" and any other hazards, including
<br /> flaods or floc,ding, for which L.ender requin:s insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to L�nder's approval :
<br /> which shall not be unreasonably withheld. If Borrower fails tu maintain coverage described above, I.ender may, at Lender's
<br /> option, obtain coverage to protect Lender's rights in the Prope�ty in accordance with paragraph 7. �
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. L.ender
<br /> sha[! have the right to hold the policies and renewals. If L.ender requires, Borrawer shall promptly give to L.ender all receipts of
<br /> F�aid premiums and renewal notic�.s. In thc event of loss, Bonower shall give,.prompt notice to the insurance�arrier and Lender.
<br /> Lender may mske proof of loss if not made pmmptly by Barrower.
<br /> Unless Lender and Borrower otheraise agree in writing, insurance proceeds'shall be applieG to resroration o:repair of the
<br /> Propeny damaged, if the restoration or rc;pair is economic:�ily feasible and I.cnder's security is not lesseneci. If�e resroration or
<br /> r..pair is not econcmical(y feasible or I,ender's secu*iry woule! be Iessened, the insurance proceeds shall be applied to the sums
<br /> secured by thi5 Security Instrument, whether or not then due, with any ezcess paid to Bonower. lf Borrower abandons the
<br /> Froperty, or does nat answer within 30 days a notice from L.entier that the insurance czrrier has offered to settle a claim, then
<br /> I.endcc may collect the insurance proceeds. Lender may use ttir. pro:.eeds to repair or resrore the Property or to pay sums
<br /> secured by this Security Instrument, whether or not then duc. The 30-day geriod wi11 begin when the notice is given.
<br /> Unless Lender and Sorrower otherwise agree in writing, any application of proceeds ta principal shall not extend or
<br /> postpone �.he due date of the m�nthly payr.�er,.s refened to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under pa:agraph 21 ehe Property is acquireci by L.ender, Borrower's right to any insurance policies and proceeds resulting frum
<br /> damage to the Property prio*to the acquisitian shall pass to Lender to the extent of the sums secured by this Security Ins:rument
<br /> immediately prior to the acquisition. �
<br /> 6. Occupancy, PY-eservation, Maintenance and Protection of the Property; BortoWer's Loan Application; LeasehcVds. -� :
<br /> Borrower shall occupy, estabiish, and use the Property as Borrower's principal residence within sixty days after the ezecution of �
<br /> this Se,curity [nstrument and shall continue to occupy the Property as Bonawer's principal reside�ce for at least ane yeu after �
<br /> the date of occupancy, unless I.ender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless �
<br /> pxtenuating circumstances exist which are beyond Borrower's contr�l. Bvrrower shall not destroy, damage or impair the n
<br /> Property, allow the Property to deteriorate, or commit waste on the Property. Borr`uwer shall be in default if any ForCeiture �
<br /> actio❑ or proceeding, whethe� civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the �
<br /> I'roperty or otherwise materially irnpair the lien created by this Security lnstrument or Lender's security interest. Borrower may ''?
<br /> cure such a default al�:i rE�nstate, as provided in paragra�h 18, by causing the action or proceeding ro be dismissed with a ruling
<br /> that, in Lender'c good s"aith determination, predudes forfeiture of the Borrower's interest in the Property or other material
<br /> impairment of the lien created by tliis Securiry Instrument or Lender's securiry interest. Borrower shall also be in default if
<br /> Bar;ower, during the loan application process, gave materially false or inaccurate information or statements to L.ender(or failed
<br /> ro orovide Ler.der with any mater;�l infor*nation) in connection with the loan evidenced by the Note, including, bat not 1'srnited
<br /> ro, rcpresentations cancerning Eon-ower's occupancy of the Property as a principai residence. If this Security Instrument ;s on a
<br /> leasehold, Borrower shall comply with all the provisions of the lease. If Bo�rower acquires fee title to the Property, the
<br /> leasehold and the fee title shall not merge unless I.ender agrees ro the merger in writing. :
<br /> 7. Protectic�n of I,ender's Reghts in the Property. If Borrower fails to perform the cov�nants and agreements contained in
<br /> this Security instrument, or there is a lega] proceeding that rr.ay significantly affect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy, probate, for condemr.ation or forfeiture or to enforc� laws or regulationsl; tt,en Lender may do and
<br /> pay for whatever is necessary ro grocect the val�e of the Property and Lender's rights in the Property. Lender's actions may
<br /> incfude paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br /> reasonable attomeys' fees and en�ering on the Prope�ty to malce repairs. Although Lender may take actiun under�this paragraph �
<br /> 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 /> Sec��riry Instrun;ent. Unless Borrower and I.ender agree to other terms of payment, these amounts shall bear interest from the
<br /> date of disbursement at the hote 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 /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effxt, If, for any reason, the '
<br /> mortgage insurance co�erage required by I,ender lapses or ceases to be in effect, Bonower shalt pay the ,premiums requirecl ta
<br /> obtain coverage substantially equivalent to the mortgage insurance previausly in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the morcgage insur.ance previously in effect, from an alternate rnortgage insuze� approved by Lender. if
<br /> substantially equivalent mongage insurance coderage is not avaitable, Borrower shali pay to Lender each month a sum equal to
<br /> one-t�c�eEfth of the yearly mongage insurance prem;um being paid by Borrower when the insurance coverage lapsed or ceased to
<br /> be in effect. L.ender wiil accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
<br /> Fotm 3028 9l9p
<br /> ��BRiNE1 192121.02 Pape 3 0l 8
<br /> wc�ai,•
<br /> �
<br />�
<br />±�. . 1_
<br />
|