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<br /> 5. Haz,lyd or Property In.surance. Sorrower sh�ll kee�; the ir*iproveme�ts now ezisting or hereafter erected on the
<br /> Property insured against !oss by Fare, ha�ards included wi.hin the term "ezteflde�i coverage" and xny other hazards, including
<br /> floods ar flooding, for which �t,ender requires insurance. 'This insurance shall be m.aintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier�roviding the iaturance shall be chosen by Borrower subject to Ixnder's approval
<br /> which shall not be unrezsonably withheid. If Borrower fails to maintain coverage descritreel above, Lender may, at Lender's
<br /> opt'ron,o6G�in coverage to protect Ixnder's rights in the Property in accordanc�with paragraph 7. '
<br /> All insurance policies and renewals shal( be a�ptable to Lender and shall include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals. If I.ender requires,Borrower shali promptly give to,Lender etli re�eipts of �
<br /> Paid premiums and renewai notices. In ehe evem of loss, Borrower shall give prompt notice to the insursnce carrier and Lender. -�
<br /> Lender may makP proof of ioss if r�ot made pmmptly by Borrower. �
<br /> Uniess Lender and I3orrower otherwise agse�:En writing, i:�surance�roceeds shall be applied to re,toration or repair of the �
<br /> Property damaged, if the restoration or repair is economically feasible and Lend�r's security is not lesstrt� lf the restoration or �
<br /> repair is r,ot ec�nomicaliy feasible or Lender's security would be lessened, tht insueance proceeds shall be applied to the sums �
<br /> secured by this Sec�rity Instrument, whethcr or nc! 4hen due, with ar�y excess paid to Rorrower. tf Borrower abandons the ��
<br /> Property, or dc�es not answer witnin 30 days a notie� from Lende-that d�e insurance carrier has offered to settle a claim, then �
<br /> Lender may collect the insursnce proceeds. Lender may �se the proceeds to r•~..rir or restore the Property or to pay sums �
<br /> secured by this Security Instrument, whedier or nct then due.The 30-day period will begin when the notice is given. °
<br /> Unless Lender anci Borrower othenvise agree in writing, any application of proceeds to principal shall not extend or "
<br /> p�stpone the due date of the monthly paymeRts referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> �::�drr ps?agrxph 21 the Prope;ty is acyaired by Lxnder, Bormwer's:-ight to any insurance policies and proceeds resulting fsom
<br /> damage to the Pmperty prior to the acquisition shall pass to Lender to�the exte.nt oi the sums secured by this Security Instrument
<br /> immediateiy prior to the acguisition.
<br /> 6. Occupancy, �°reservation, Maintenance and d'rateMion of the Property; Barrower's Loan Appfication; i.easeholds.
<br /> Bon-o�ver shall occupy, establish,and use the ProFerty as Borrower.'s principal residencc within sixey days after the executien of
<br /> this Security tastrument and shali continue to occupy the Property as Bor.ower's principal residencc for at least one year after
<br /> the date of oc�spancy, unless [.ender otherrvise agrees in writing, which cansent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are be}•ond Borrower's control, Berrower shaE[ no� destroy, damage or impair the
<br /> Froperty, allow ttie �mperty to de;eriora;e, or commit waste on the Property. Borrower shall be in default if any forfeiture
<br /> action or procc�di7g, v,�hether civil or criminat, is begun that in Lender's good faith judgrr�nt could result in forfeiture of the
<br /> Pro�rty or otherwise materially impair tfze lien created by th:s Security Instrument or I.ender's security interest. Borrawer may�
<br /> cure sach a default and reinstate, as pmvided ir paragraph 18, by causing the action or proceeding to be dismi5sed with a n►lirlg
<br /> � that, in Lender's gr>od #'aitn determination, precludes for:eiture of the Borrower's iritemst in ti�e Property other material� ,�.,
<br /> r impairanent of the lien cmaled by this Security inswment or LendQr's security interest. Borrower shall also� in default if
<br /> �; Borrower, during the ioan npp!ication process,gavc;material(y false or inaccurate information or statements to T.ender(or failed
<br /> to provide Lender with any naterial infor:nation)in connection with ttie loan evidenced by the Note, including, but not limited
<br /> to, representations conceming Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a
<br /> leisehold, Borrowe.r shali comply with all the provisions of the iease. If Borrower acquires fee tide to d�e Property, the
<br /> leasehold a,-xl the fee titie shall not merge unless Ixnder agrees to the merger in writing.
<br /> 7.Protection of Lender's Rigl�ts in the Property.If Borrower fails to perform the covenants and agreements contained in
<br /> this Security Instrum�nt, or there is a legal proceeding that may signific�ndy affezt Lender's rights in the Property (such as a
<br /> proceeding in bankniptcy, probate, for condemnation or forfeiture or to enfo�ce laws or regulations), then Le�der may do and
<br /> pay for whatever is nece.esa.ry co protect the value.of the Property and L,ender's rights in the Propem�. Lender's actions may
<br /> include paying any sums securec! by a lien which has priority over this Se�urity Instrument, appearing in court, paying
<br /> ,�` reasonable atiomeys' fees and entering on the Propetty to make repairs. Although Lender may take action uc�der this paragraph
<br /> > 7, I.ender dces not have tn do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additioral debt of Borrower secured ty this
<br /> Security Irtstrument. iJnlesc 6orrower and Lerzder agrr,e to other terms of payment, tE�ese amounts shall bear interest from the
<br /> date of dishursemen: u� che Note rate and shall be payable, with intera�[, upon noiicc from Lender to F3orrower requesting
<br /> payment.
<br /> S. Mortgage insura�ce. If txnder requireci mortgage insurance as�con�litior.of making the loan securer!by this Security
<br /> �: Instrumcnt, Borrower shali pay the premiums requirr.d to rnaintain d�e moRgage insurance in effxt. If, for any *eason, ihe
<br /> ;:' mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borsower;iiaU pay the premiums required ro
<br /> obtai��coverage suSstantialiy equivalent to ihe mortgage insurance previously in effecs, at a cost substantially eq��iva�ent to the
<br /> cost to Borrower of the n�ortgage insurance previously in effect, from an aiternate mortgage insurer approved by Len�er. If
<br /> substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to L.ender each month a sum equal to
<br /> ; one-Ew�?fth of the yearly mortgage cnsurance premium being paid by Bormwer when the insurance coverage lapsed or ceaseci to
<br /> ; be in effect_ Lender wili accept, use and retain these pa}�ments as a loss reserve in lieu of inortgage insurance. Loss reserve
<br /> Form 3028 9190
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