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<br /> 5. Hazxrd or Property Insurance. Borrower shall keep the impm��emens naw existing or her�z�ter crecte� on the
<br /> Property insured anainst Inss uy fire, hazsrds included within the term "eztended coverage" and any otl:er hazards, including
<br /> + floods or floa3ir�g, for which I.ender requires insurance. This insurnnce shal:l be maintained in the amounts and f�r the periods
<br /> !hat Lender requires. "i'he insurance carrier praviding the insurance sha41 he ehosen by Borrower subject to Lcnder'!. �ppr�vaf
<br /> ; which shall not be unreasonabiy withheld. If Borrower fails to mainiain coverage describecl above, TJender may, at I.ender's
<br /> �iption, obtain coverage to p:otect I,ender's rights in the Property in accordanc:e with paragraph 7. - �
<br /> All insurance palicies and renewals shal! be acceptab[e to Lender and shall include a standard mortgage clause. L.enuer
<br /> shall have the rignt to hold the palicies and renewals. If Lender reqaires,Bonnvrer shal!promptly give ta Lender ail reczipts of
<br /> paid premiums and ren�wal notices. In the even:of loss,Fsorrower st�all giz-e�irompt notice to the insurance carrier and L.ender.
<br /> Lender may make proaf of loss if n�t made F�rompdy by Bo.-rower. �
<br /> Unlcss Len�er and Borrower othenvise agree ia Hriting, insurance proc��s shall be applied to restara:ion or repair of the
<br /> Yraperty damaged, if the restot�ation or repair is economically feasibte and uader's security is not lessened. If @he restoration or��,�
<br /> repair is not economically feasible or I,ender's security would be l��senexf, the:insurance procceds shalt be app�ied to the sums �
<br /> secured by this Security I�strument, whether or not then due, with any ezce�s paid to Borrower. If Borrower`abandons the •
<br /> Pro�erty, or dces not answer within 30 days a notice from I.ender that the insurance car�ier has effered to settle a claim, then j.��
<br /> Lender may collect ihe insarance proceeds. Lender may u�.e the proceec�s to t�epair or restore the Property ar to gay sums G
<br /> secured by this Security Instrumcnt, whether or not then due. The 30-day periocl w;ll begin when the notice is given. �
<br /> Unless L.ender and Borrower otherwise agree in writing, any appiicat:an cf proceeds ta ptincipal shall not extend or O
<br /> post�ne the due date of the m��nthly payments referred to in paragraphs 1 and 2 or change the amount of the payme�its. If �+
<br /> under paragraph 21 the Propeny is ac�uired by Lender, Borrower's right to an}� insurance�!�c�es and proceeds resulting from �
<br /> damage to the Froperty prior to t�e acquisicon shalt pass to Lender to the exteut of the sums secured by 4his Security Instrument
<br /> immediate{y prior to Yhe acquisition.
<br /> 6. Occupancy, Preservation, Maentenance and�'rotection of the Prope;�; Rarrower's Loan Application; Leaseholdso
<br /> Borrower shall occupy, establish, and use the Property as Berrower's princi�al residence within sixty days after the execution of
<br /> ti�is Security Instrument and shall continue to occupy the Property as Botrower's principal residence for at least one year after
<br /> the date of occapancy, un{ess I.ender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Bonower's rontrol. Iiorrou✓er shall not destroy, datr�age or impair the
<br /> P�operty, allow the Property to deteriorate, or commit waste on ihe Property. 1Bonower shall be in default if any forfeiture
<br /> action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the
<br /> Property or otf�envise materially impair the lien create,�by this Securi!y Instrument or Lender's sec�rity interest. Borrower may
<br /> rure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling
<br /> tha;, in Lender's good faith determination, precludes forfeiturP of the Borrow,;r's interest in the i'roperty or other tnaterial
<br /> impairment of the lien crPZted by thi� Security Instrument or Lender's se�:urity interest. Borrower shall also be in default if'
<br /> Borrower, d��ring the loan appli�ation pracess, gave materially false or inaccurate information or statenients to C,ender(or failed
<br /> to provide L,ender with any material informatian) in connection with the loan evidenced by the Note, including, but not limited
<br /> to, representations cuncerning Borrower's occupancy;�f the Property as a principal residence. if this Security Instrument is on a
<br /> leasehold, Borrower shall cornply �viih atl the provisicns of the lease. If Borrower acquires fee ti[le to ihe Property, the
<br /> leasehold and the fee tit(e shall not merge unless Lender agrees ro tP�e merger ir writing.
<br /> 7. Prntection of Lender's Rights in the Property. If Borrower fails to perferm the covenants and agreements contained in
<br /> this Security Instniment, or there is a legal p:oceeding that may significandy affect Lender's rights in the Proparty (such as a
<br /> proceeding in bankruptcy, probate, for condemnation �r forfeiture or to enforce iaws or regulat�ons), then Lender may do and
<br /> pay for whatever is necessary !o protect the value af the Property ancl Lender's rights in the Property. Lender's actions may
<br /> include paying any sums secured by a lien which has �riority over this Security fnstrument, appearing in court, paying
<br /> reasonable attorneys' fees and enteri�g on tlie Property to make repairs. AlthoughF Lender may take action 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 /> Security Instrument. Unless Borrower and l.ende:agrP.e co other terms of payment, these amounts shall t,ear interest from tha
<br /> date of disbursement at tne ��ote rate and shall be pa�able, with inte:rest, upon notice from Lender to Borrower requesting
<br /> payment.
<br /> 8. R1ort�aRe Insuronce. If Lender required mortgage insurance as a condition of making the loan szcured by this Seruri[y
<br /> Instrument, Borro�ver shall pay the premiums required to maintain the mortgage:insurance in effect. If, for a^y reason, the
<br /> m�rtgave insurance coverage required by Lender lapses or ceases to be in effect, Borr4wer shall pay tt�e premiums requircd to
<br /> obtain coverage substantially equivalent to the morigage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortgage insurance previousiy in effect, fromi an alternate mortgage insurer approvrd by i,ender. If
<br /> substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender cach month a sum ec�uai to
<br /> en�-t.vel;th of the yearly mortgaee insuranee premium being paid by Borcower when the insurance coverage lapsed or ceased ro
<br /> be in effect. Lender will accept, use and retain these payments as a loss reserve ir lieu of inertgage insurance. L,oss reserve
<br /> Form 3028 9/90
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