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<br /> S. Haza�d or Propeity Insurs�nce. Bonow�r shall kap the improvements now existing on c�reaft�r erected on the
<br /> Property insured against loss by firo, hazards include� within the term "eztended rnverage" and any other hazards, including
<br /> floods or flooding, for which Lender requires insurance. Thes insurance sha1� be maintained in the amounts and for the periods
<br /> that Lender rcquires. The insurance c,�urier providinr the insurance shall be chosen by Borrower subject to I.ender's approval
<br /> wtiich shall not l,e unreaeonabiy withheld. If Borrower fails to maintain coverage desc:ribed above, Lender may, at Lender's
<br /> option,obtain coverage to protect Lender's rights in the Prop`erty in accordance with paragmph 7, "� '
<br /> ,4�1 insurance policies and renewa�s shall be acceptablt to I.ender and shall include a standard mortgage clause. Lender '�
<br /> shall have the right to hold th�policics and renewals. If Lender requires, Borrower shaU p�bmptly give to Lender all rcceipts of �
<br /> paid premiums and r�newa; noticcs. in tl�e event of loss, Borrower shall give•prompt notice to the insuraace carrier and Lender. F,i
<br /> Lender may make proof ot'loss if not made promptly by Borrower. ' ,�
<br /> Unless L,cnder and Borro:ver otherwise agree in wri:ing, insurance proceeds shall be applicd to res�oration or repair of the Cr
<br /> Property damaged, if the restoration or repair is e�onomically feasible and I.ender's security is not iessened. If tho rostoration or uf
<br /> repair is not economically feasible or Lender's security would t�lessene3, the insurance procceds shall be applied to the sums �
<br /> securcd by this Security Inswment, whether or not then due, with any excess paid to Borrower. If Borrowc,r abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to se.ttle a claim, then
<br /> Lender may collect the insurance peoceeds. (.ender may use the pro�sis to repair or restore the Praperty or to pay sums
<br /> securcd by this Security Instrument, whether or not then due. The 30-day period wiL begin when thc notice is given. `
<br /> Ilnless Lender and Bonower otherwise agrce in writing, any application of procceds to principal sh 1 not extend o�'-
<br /> postpone the due date of the monthly p�yYnents r;eferred to in paragrap'.s 1 and 2 or change the unount of�payments. lf �
<br /> �:nder paragraph 21 the Property is acquirai by Lender, Barrower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition shall F�ass to L.ender to the euent of the sums secured by this Securiry Instrument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Mai��tenance and Protection oC the Pr�perty; Boe-rower's I.oan Application;
<br /> Leaseholds. Borrower shall occupy, establiah, and use the Property as Borrower's principal residence within sixty days after the
<br /> execution of this Security Instrunient and sha!!continue to occupy the Propexty as Borrower's prinzipal residence for at least one
<br /> year after the date of occupancy, unless I.ender otherwise:.zgrees in writing, which consent shall not be unreasonably withheld,
<br /> or unless eztenuating circumstances ezist wnich are beyond Borrower's controi. Borrower shall not destroy, damage or irnpair
<br /> the Prcpeny, allow the Property to deteriorate, or,commit w;ute on the Property. Borrower shall be in default if any forftiture
<br /> action or proceeding, whether ci��il or criminal, is begnn that in Ixnder's good faith judgment could result in forfeiture of the
<br /> Property or otherwise materially impair the lien created by this,Security Instn�ment or L,ender's securiry interest. Borrawer may
<br /> cure such a default and reinstate, as provided in pa:agraph 1$, by causing the action or proceeding to be dismissed with a ruling
<br /> that, in Lender's good faith determination, pnxludes forfeiture of the Bonower's interest in the Propercy or ather material
<br /> impairment of th� lien created by this Security Instrument or Let�der's security interest. Borrower shall also be in default if
<br /> Borrower, d:�ring the loan application process, gave materially false or inaccurate informatian oi•statements to I.ender(or failed
<br /> to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited
<br /> to, representations concerning Sorrower's occupancy of the Property as a principal residence. If this Security lnstrument is on a
<br /> leasehold, Borrower sh�ill comply with al1 the provisiuns of the leas.e. If Bonower acquires fee tide .ta the Pr�perty, the
<br /> leasehold and the fee titlz shall not merge unless L.ender agrees to the merger in writing.
<br /> 7. Protection of Lxnder's Rights in tbe Property, If Borrower fails to perform the covenants and agreements contained in
<br /> this Security Instrument, or there is a legai proceeding that may significa��tly affect L.ender's rights in the Property (such as a ,
<br /> proceeding in bankrupt�y, probate, ior condemnation or forfeiture or to enforce laws or regulations), then Lender may do and �
<br /> pay for whate•;cr 'rs necessary to protect the value of the Property and I.enc�ec's rights in the Property. Lender's actions may v
<br /> include paying any sums secured by a tien which has priority over this .�ecurity I.strument, apgearing in court, paying
<br /> reasonable attorneys' 3!��s and entering on the Property to make repairs. Although L.ender may take action under this paragraph
<br /> 7, L,ender does not ha.�e tc do so.
<br /> Any amounts disbursed by L.endcr under this paragraph 7 shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Bonawer and 1.ender agree ta other terms of paymena, these amounts shall bear interest from the
<br /> date of disbursement at the Note rate and shall be payable, with interest, upon notice from I,ender to Borrower requesting
<br /> payment.
<br /> 8. Mortgage Insurance. If L.ender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Borrower shall pay the piemiums required to maintain the n�ortgage insurance in effect. If, for any reason, the
<br /> mongage insurance coverage required by Lender lapses or cea,ees to be in effect, 6orrova�er shall pay the premiums required to
<br /> obtain coverage substantially equivalent to the mortgage insur;;,c�preyiously in effect, at a cost substantially_eq�ivalent ro the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate rnortgage insurer approveci by Lender. lf
<br /> substantially equivalent mortgage insvrance coverage is not available, Bonower shall pay to Ixncler each month a sum equal to
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to
<br /> be in effect. Lender wiU accept, use and retain these payments as a loss reserve in lieu of moregage insurance. Loss reserve
<br /> ��8R(NE1�sziii.oa Form 3028 9/90
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