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<br /> ;; 5. Haz:ird or Property Insarnnce. Borrowec shall keep the improvements no�v existing or hereafter erected on the
<br /> Property irisured against lo�.s by fire, ha�rdc includeci within thc term "extended coverage" and any other i�azards, including
<br /> floods ar flooding, for which L,ender requires insurar�ce. This insurancr shall bc maintained i� the amounts and for the periods
<br /> ttiat Lender requires. The insurance carrier pmviding the insurance shall be chosen bv Borrower subject to I.er.der's approval
<br /> which sfiall nat be unrrasonably withheld. If Borrower faits to maintain coverage describe.d above, Ltnder may, at Lender's
<br /> option,obtain coverage to protect Lender's rights En the Property in accvrdance with paragraph 7_
<br /> A!1 insurance policies and renewals shall be acceptabie to L.ender and shall i�tclude a standard mortgage claus�: Lender
<br /> sha11 t�ave the rioht to hold the policies and renewals. If L.ender requires, Borrower shall prosnptly gi��c to Lender all reccipts•of
<br /> paid premiums and :enewa! notices. In the evettt of loss, Florrower shall give pro►r�t notic�to the insurance cazrier and Lender.
<br /> Leader may rpake proof of loss if not made prompdy by Bc+rrower. ,•
<br /> Unless Lender and Borrower oiherwise agree in writing, i�surance proceeds shall be�pnlied to restoration or repair of the
<br /> Property damagtxi, if the r�toration or repair is economi�ally feasib(e and Lender'sse.,^urity is not lesseaed. 1f the restoration or � '
<br /> repai:is not economically feasible or Lender's security would be lessened, ehe insurance proc�eeds shalt be appiied to the sums .,1�
<br /> secured by chis Security Insirument, whether or not then due, wiih any excess paid to Borrower. If$orrower abandons the �
<br /> Proper,y, or docs not answer within 30 days a notice from Lender that the insurance catrier has offered to se.►.de a claim, then
<br /> L,ender may collect the insurance proceeds. I,ender may use the proceeds to reRair �r m,store the Froperty or to pay sums O
<br /> secured by this Security tnstrument, whether or not then due.The 30-day periud will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree i�z writing, �ny �pplication of proceeds to principaf shali not extend or � �
<br /> postpone the due date of the monthly payments refeRed to in paragraphs 1 and r or change the amount of the payments. If �
<br /> under pargraph 21 the Property is acqulred by Lender, Borrower's right to any insu;.�:.c;,policies and proceeds resulting from
<br /> damage to the Property prior to the acquisi:ion shall pass to Lerider to the extent of the sums secured�by this Security Instrument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; gorrowe;'s L.tia� Applipt3on; Leasehold5.
<br /> Borrow•er shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of
<br /> this Security Instru;nent and shall continue to occupy the Pmperty as Borrower's principa) reside�u:e for at least one year after
<br /> the date of occupancy, unless Lender otherwise agrees in writing, whish consent shall not be unreasonably wi� held, or unless --
<br /> extenuacing circumstanc�s ezist which are beyond Borrower's contml. Borrower shall not destroy, damage�or impair the `�
<br /> Property, allow the Property to deteriorate, or commit waste on the Prope;ty, gorro�ver shali be in default if�ny forfeiture
<br /> action or proceeding, whether civil or criminal, is begun that in L,ender's good faith judgment could result in forfeiture of the
<br /> Property or otherwise materially impair the licn created by this Security Instrument o:Lender's security interest. Borro�ver may
<br /> cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a rulir;g
<br /> that, in I.ender's goo� faith determination, precludes forfeiture of the Borrower's interest in the Property or other material
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br /> Borrower, during the loan application pre,;ess, gave materi�lly false or inaccurate information cr statements to L.ender(or failed
<br /> to provide L.Ender with any material information) in connection with the loan evidenced by the Note, including, but not limited
<br /> to. representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instniment is on a
<br /> leasei�old, Borrower shall comply with all t�ie provisions of the Irasz. If Borro�ver aequirc� fee title to the Property, the
<br /> leasehold and the fee tit{e shall not merge unless L.ender agrees to the merger in writing.
<br /> 7. Frotection of Lender's Rights in ihe Property. if Borrower fails to perform the covenants and agreements contained in
<br /> this Security Instrument, or there is a legal proceeding t!iat may significantly affect i.ender's r'rghts in the Property (such as a
<br /> proceeding :n bankruptcy, probate, for condemnation or forfeiture or to enforce laws ar regulations), then Lender may do and
<br /> pay for w�hatever is necessarv 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 (ien which has priority over this Security Instrument, appearing in court, paying
<br /> reaconable attorneys' fees and entering on the Pr�perty to make repairs. Although L.ender may take action under this raragraph
<br /> 7, Lender does nat have to do so.
<br /> r Any amounts disbursecl by L.ender under this paragraph 7 shall become additionai debt of Borrower secured by this
<br /> Security instrument. linless Borrower arxi Lender agree to other ierms of payment, these amounts shall bear interest from the
<br /> date of disbucsement at the Note rate and shal! be payable, with interest, upon notice from L.ender to Borrower requesting
<br /> payment.
<br /> : �. Mortgage insurance. Tf L,ender required mortgage ir,surance as a condition of making the loan secured by this Security
<br /> ; Instrument, Borrower shall pay the premiums reyuircd to maintain the mortgage insurance in effect. If, for any reason, the
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<br /> mortgaee insarance �overage rc;quired by Lender lapses or ceases to be in effect, Borrower shali pay the premiums requirrd to
<br /> � obtain coverage substantiafly equivalent to the mor!gage insurance previously in effect, at a cost substantially equivalent to thc
<br /> , cost to 3orro�ver of the mongage insurance previously in effect, from an alternate mortgage insurer apNroved by Lender. If
<br /> � substantiatly equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equa! to
<br /> �, one-twelfth of the yearly mortgage insurance premiurr being paid by �orrower when the insurance caverage lapsed or ceased to
<br /> �: be in effect. L,ender wi11 accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
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<br /> Form 3028 9/90
<br /> Pspe 3 of 8
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