|
S. Ha�zard or Property Insurance. BorrQwer shall keep the improverreents now existing or herezfter erected on thc
<br /> Propert}• insuied against loss by fire, hazards included within the!erm "eztencled coverage' and any ocher hsiards, including
<br /> floods or}lood6ng, for which I.ender requires insuia.nce. This irsarancc shalt be maintaitted io the amountt and for the periods
<br /> that Lender requir.-,s. The insurance carrier provid�rng the insurance shall be chosen by B�rroaer subject to Lender's appmvai
<br /> which shall rmc be unreasonal:ly withheid. If Bon•ow�r fails w maintain co��erage�described above, L.ender rnay, at L.ender's
<br /> option,obtain caveragt co protect Lender's nghts in ihe Property in accordance with paragraph 7. .
<br /> Alt insurancc policies and reoewals shalf be aocep;able to I.endEr and shail include a standard rrortgage clause. L.ender
<br /> shall have the right to hold thc policies attid renewa(s. If L.ender requires,Bormwes shall promptly give to I.ender all receipts a;'
<br /> paid premiunu and renewal r�otices. In the e.•ent of loss.$orrower shall gire pmmpt notice to the ineurance carrier and Irnd�r.
<br /> Lcnder may make proof of loss if not made procnptty by Borr�wtr. '
<br /> Unless Lender and Borrowc;athcrwise agree in writing, insurancc procceds shap be a�plietii to restamtion or repair of the
<br /> Pmperty damaged, if the restoration or repair is xor�omically feasible and I.ertder's sac�rity is not less�ened: If the restoratian or
<br /> repair is not econornically feasible or Lender's security would be lessened, the insurance proceods shail be applied to the sum.e
<br /> secured by this Security Instrument, whether or not then due, with any exxss paid to Borrower. If 9orrower abamions the
<br /> Property, or does not answer within 30 days a notice from I.ender that the insurance c�rrier has offered to settle a claim, then
<br /> I.ender may collect che insurance proceeds. L.ender may use the proc�d,c to repair or restore the Property or ta pay sums --9
<br /> securc�by tliis Security In.ettvm�nt,whether or rx�t then due.The 30-day period�viU begin w'xn the notice is given. .� .
<br /> Unlc.�ss !ender and Borrower otherwise agree in writing, �ny application of proce�.*�c to principai shall not exten� or '
<br /> ixrstpor.e the c�ue date of thc �:xii,thty payments refcrxcf to i� pivagraphs 1 and 2 c+r change the artwun; ai the payments. If �
<br /> under paragraph 2] ehe Property is acquircd by I.ender, Borrower's right to any insurance policies and procteds resu(ting from �,,,,)"
<br /> damage to the P-�perty prior ro the acquisition shall pass tu L,ciMer to the extent of the s�?�_*+�sdcured by this Security Instrument Q
<br /> imme.ciiately pri;i�iv t�e acquisitiun. \ U�
<br /> �• Oc�cupancy, Preservation,Aiaintrngnc:and Protrctioa aP t!u Property; Borrower's Loan Applicstio�; I.easeholds.` � _,.
<br /> Borrower shall occupd, �tabli�h,and use the Propezty as Borrower's principai r�idonce withirt sixty days aRer th�exec�tion of ,
<br /> this Security Instrument and shall aontinue te occ��y the property as IIo�rower•s prir�c9pa1 residence for at least onr.yea�after
<br /> tlie date of a:cupancy, unless L,ender otherwise agrces in writing, which rnnsent shall not b.-.unreasonably withheld, or unless
<br /> extenuating circumstances ezist which are b�eyond Borrawet's cantml. Borrower shall not destroy, damage or �mpair the
<br /> Property, allow tho Property to detariocate, or rnmmit waste en the Pcvperty. Bor.rower shall be in defuult if any forfeiture
<br /> action or proce�iing, whzther civii or crimire3l, is bCgun that in Lender's good faith judgment coutd r�ult in fo�feiture of the
<br /> Property or otherwise materially impair the lien ctt�ted by this Savrit}Irutcvment or Lerke�'s socurity interest. �rrower may
<br /> cure si�ch a deCault and reinstate,as provided in paragraph l8, by causing the action or pmceeding to be dismissed wich a ruling
<br /> ',; that., in Lendtr's goc�d faiih detecm�natian, pra,ludes forfeiture of tt:e Borrowzr'� interest in the Property or other material
<br /> impairment of the lien created by this Security Instrument or Ltndtr'c securicy interest. Borrower shal! also be in default if
<br /> Borrower, during the loan application process, gave materiaUy false or irtaccurate inform.ation or statements to Lender(or failed
<br /> tu provide Lender with any matcria! information)im m�nection with the]aan evidenced by the Note, including, but not !'smited
<br /> tu, representations concerning Borrower's occupancy of the Property as�principai msidenca 1f this Security Instrument is an a
<br /> leasehold, Borrower shall compfy with all the provisions of the lease. If Borrower acquires fee title ta the Pmperty, the
<br /> leasehold and the fee!i?!e shait not cner3e unless l,ender agt�,c to the merger in writing.
<br /> 7. Proteciion of Len�fer's Rights in the Prapert}.If$orrower fails ro perform the covenants and agreements contained in
<br /> this Security Instrument, or there is a legal proceeding that may s9gnificantly affect C,ender's rights in the Property (such as a
<br /> proceeding in bankruptcy, proba�, for mndannation or forfeiture or to enforce laws or regulations}, then L.endrr may do and -
<br /> pay for whatever is nzcessary to protect the value of the Property a��d I„ender's rights in the Property. I.ender's actions may
<br /> � include paying any sums secured by a lien whirh has priority o��er this Security instrument, appearing in couR, paying
<br /> �, reasonable attorneys' fe�and entcring on the Property to make repairs. Allhough Lender may take action under this paragraph
<br /> 7, I.ender�oes not have to do so.
<br /> ' Any smounu disbursed by Lender under this paragraph 7 shali become adsfitional debt of Borrowtr secured by this
<br /> Security Instrnment. Unles.a Borrower and I,encfer agret to other terms of payment, thcse amounts shali bcar intercst from the �
<br /> date of disbursement at the Note ratc and shal! be payable, with interest, upon natice from L,encfer to Borrower reyuesting
<br /> paym�nt.
<br /> 8. I�Iortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> � . Instrumcnt, Borrower sha11 the roniums
<br /> r, Pay p required to maintain the mortgage insurance in effect. If, for any reason, the
<br /> ; mortgap,e 'snsurance r�verage reyuired by Lend�r�apses or ceases to be iR effe�t, Borrower shall pay the premiums required to
<br /> : obta�n coverage substantislly equivalent ta the mortaage iruurance�;e�iausly in effect, at a cost substantialiy esiuivaie�t to thc
<br /> �, cost to Borrower of the mortCage insurance previously in eff'ect, f�om an alterr�xte mortgage insarer approved by Lender, if
<br /> substantially equivafent mortgaoe insu*anc�e cv>veraga is not available, Borrower sh�ll pay to�Lender each:�sth a sum equal to
<br /> one-twelfth of che yearly Tnortg,tge insurance prerruum being paid by Borrower whert the insurance coverage lapsed or ceased co
<br /> be in effect. i.ender witl acceFt, use and retain these paymene�as a loss reserve in liet: of mortgage insurance. Lc�ss reservt
<br /> 4 Form 3028 9/80
<br /> Pape 3 of 6
<br /> {
<br /> \ �
<br /> \
<br /> \ �
<br /> +
<br /> �' �'
<br />
|