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5. i-iazard or Propert�� Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Froperty insured against loss by fire, hazards indaded within the term "extended coverage" and any other hazards, induding
<br /> flocidz or fiooding, for which Lender requires insurance. This insurance shalf be maintained in the amounts and for the periods
<br /> that L,end�r *eq�ires. The insurance carrier providiR� the insurance shall be chosen by Borrower subject to Lender's approval
<br /> which sha11 not be: unreasonably withheld. If Bonower fails to maintain coverage describecl above, Lender may, at Lender's
<br /> option, obtain roverage to protect L,ender's rights in the PrSperty in accordance with paragraph 7. •
<br /> All insurance policies and renewals shall be acceptable to Lrnder and shall include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals. If Lender rcquires, Bvrrower shall prompdy give to L.ender all receipts of
<br /> paid p�emiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and L.ender.
<br /> l,ender may make proof of IQSS if not made prompt(y by Borrower. �
<br /> Unless Lender and Borrower otherwise agree in writing, insnrance proceeds.shall be applied to�estoration or repair of the
<br /> Property damaged, if the restoeation or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br /> repair is not e�onomically feasible or Lender's security would b� lessened, the insurance proceeds shall be applied ro the sums
<br /> secured by this Security [nstrumeni, whether or not then du;;, with any excess paid to Borrower. If Borrower abandons the
<br /> Pr<�perty, or does not answer�vithin 30 days a notice from Le�der that ihe insurance carrier has offercd to settle a claim,,then
<br /> Lender may collect the insurz�nce proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br /> secured by this Security Instrument, whether or not then�ue. The 30-day period will begin when the notice is given. �
<br /> 'rJnless Lender and $orrower otherwise agree in writing, any application of proceeds to principal shail'.not extend or � `
<br /> postpone th? due date of the monthly'payments referred to in paragraphs 1 and 2 or cbange the amount of the�ayments. If '�
<br /> under paragraph 21 the Property is acquired by L,ender, Borrower's right to any insurance policies and proceeds resulting from �
<br /> damage to the Property priar to the acquisition shall pass to Lender to the extent of the sums secured by this Security [nstrument �'
<br /> invned;ately prior to the acquisition. �
<br /> 6. 1�ccapanc,y, Preservation, �!aintenance and Protect;on oe cn�R-o��cy; ga�WQr's Loan A�plication; Leascholds. �
<br /> Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execation of �
<br /> this Security Instrume��t and shall ccntinue to occupy the Property as Aorrower's principal residence for at least one year after �
<br /> ttie date of occupancy, unless Lender otherwi�e agrees in writing, which consent shall not be unreasonably withheld, or unless �
<br /> exrenuatir,� circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br /> Property, a(fow the Property to deteriorate, or commit waste on ;he Prnn�rty. Borcower shall be in default if any forfeiturc
<br /> action or proceeding, whether civil or criminal, is begun that in L,ender's bood faith judgmenc could result in forfeiture of the
<br /> Property or otherwise materially impair the lien create; b;this Security Instrument or I,ender's security interest. Borrower may
<br /> cure such a default and reinstate, as provided in paragraph I$, by causing the action or proceeding to be dismissed with a ruling
<br /> that, in I.ender's good faith determination, precludes forfeiture of the &�rrower's interest in the Property or other mat�rial
<br /> impairment of the iien created by this Security lastrument or Lender's s,:curity interest. Borrower shall also be in default if
<br /> Borrower, during the loan application process,gave materially false or ina:curate information or staterticnts to Lender(or failed
<br /> to provide Lender with any material information) in conrtection with the I�oan evidenced by the Note, including, but not limited
<br /> to, representations cancerning E3orrower's occupancy of the Property as a principal residence. 1f this Security Instrument is on a
<br /> leasehold, Borrower shall comply wich all the provisions of the lease. If Borrower acquires fee title to the Property, the
<br /> leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the crvenan�s and agreements contained in
<br /> this Security Instrument, ��there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a
<br /> proceeding in hankruptcy, probate, for condemnation or forf�iture or to enforce laws or regulations), then Lender may do and .
<br /> i
<br /> pay for whatever is necessary to protect the vafue of the Properiy and Lender's rights in the Propeny. Lender's actions may
<br /> include paying any sums secured by a lien �vhich has priarity over ihis S�curity Instrument, appearing in court, paying
<br /> reasonable attomeys' fees and entering an the Property to make ��pairs. Although Lender may take action under this paragr�ph
<br /> 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this Faragraph 7 shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall btar interest from the
<br /> date of disbursement at the Note ratA and shall be payable, with interest, u�n notice from Lender to Borrower requesting
<br /> payment.
<br /> 8. Niortgage Insurance. If Lendee requ;reci mortgage insurance as a condition e,f making the loan secured by this Security
<br /> Instrumcnt, Borrower shal( pa}� the premiums required to mainrain the mongage insurance in effect. lf, far any reason, the
<br /> mortga�e insurance coverage requ�red by Lender lapses or ceases [o be in effecl, Borrower shall pay the premiums required to �
<br /> obtair,coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantiaily equivalent to the
<br /> :.ost �o Borrower of the mortgage insurance previously in effect, from an altemate mnrtgoge insun�r approvecl by L,ender. If
<br /> substantially eq�ivalent mortgage insurance coverage is not availabie, Borrower shall pay to Lender each month a sum eyual to
<br /> one-twelfth of the yearly mortgage insarance premium be�ng Paid by Borcower when the insurance coverage lapsed or ceased to
<br /> be in effect. Lender will accept, use and retain[hese payments as a loss reserve in lieu of rnortgaoe insurance. Lc�ss reserve
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