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<br /> 5. Hazard or Propert�• Ins�:rance. Borrower shal� keep th� improvements now ezisting or hereafter erected on the
<br /> PropPrty insured aoainst loss by fire, hazards incieded within the te�m 'e�tended coverage' and any o[her hazards, including
<br /> no�as o�n��rg,~for which Lender rcquires insurance. "Ii�is insurance shall be maintaineci in the amounts und for the periods
<br /> that I.ender reyuires. '�he insurance carrier providing the insurance shall be chosen by Borrowe�subjeci te Lender's approval
<br /> which shal', iot be unrea�onably withheld. If Bortower fails to maintain coverage describeci above, I�:��!er i:�ay, at Lender's
<br /> option,obtain coverage to p-otect Lender's rights in ttx Property iqaccordance with paragraph 7. �
<br /> All insurance �olicies and rcnewals shall be ac�table to Lender and shall include s standard mortgage clause. Lender
<br /> shalf have the right to hold the policies uxi reneW�als. If Lender requi*rs.Borrower shall prompdy gi��e to Lender u11 receipts of
<br /> paid premiums anu rerrewal �tices. ln the event of loss,Borrower shall give prompt notice ro the insurance carrier and Lender.
<br /> Lender may make proof of loss if rat made promptly by Borro�ver. '
<br /> Unless L,erxier arxi Borrower otherwise sgree in writing, insurance proceeds shall be applied to r�ctoration or repa.ir of�he
<br /> Property damag�d, if the restoradon or repair is ecor�omically feasible and L.ender's serurity is not lessened.If the testuration or
<br /> repair is not eronomi�aMly feasiblt or L.ender's secvrity would be ltssened, tht insurance proceeds shall be applied t�the cums
<br /> securecl bv this Securitv Instrumezu, whether or not then due, with any excc�s paid to Be�rrower. If Borrow�er ahan3ons the
<br /> Pro�xrty, or does r.ot �nswer within 30 days a notice from l.ender that the in�urance carrier fias offered to settle a cl,im, then
<br /> Lend,- :nay colle�t the insursnce procced�. Lender may use the proceecis to repai; or r�tvre the Praperty or to pay sums
<br /> secured by this Security Instrument.whether or rtot then due.The 30-day period will begin when the notice is given.
<br /> Unlest Lende; and Borrower otherwise agme in writing, any applicatioo of prcxecd� to principal sHall not e�tend br
<br /> postpor.e: thc due date of the monthYy paymenu referrcd to in paragraphs 1 ancl 2 or change the amcwnt of thc payments. If '
<br /> under oa,^agraph 21 the Property is acc�uired by Lender, Bortower's right to any in�urance policiea nnd pmceed�;`rc�ulting from
<br /> damage ic�the Preperty priur te the xquisition shaJl pass to�'..ender to the extent of tbe sums ctcured by this Sec.urily lnstrument
<br /> immeclia�e!y orior to Ihe acquisition.
<br /> 6. Oca•�pancy, Pe�esen•ation, �iaintenance and Prnt�ction ot the Prnperty; &�rrnwer's l.oan Applica2ion; Leaccholds.
<br /> 8orcower s�,�dl occupy, cstablish,znd use the Pmfxrty ac P�orrower's pri�cipal rcsidence w•ithin sixty dayc aRer the execution of
<br /> this Securit�� in�trume»t arxi shall �-�mtin�c to occupy the Pmperty as Sartt�wer's principal �r�idence for at 'least or�e year after
<br /> the date of cxcy�parx.J�, unless Lendct otherw•ise agree�in writin�, which rnnsent shall nc�t t+e unre�.r.�nahly withheld, or unle�s
<br /> extenuating circ��mstances exisi which are beyond Bormwer's rnnirol. Rc�rrva�er shal! tx�t destmy, damage ur impair the
<br /> Prope:t�. allow t?,e Pmpe►ty to dMCrioratz, or.commit wa�te on thc Pmpe►ty. i3�in�wcr sliall tx: in dc(ault if any forfeiture
<br /> action or proceedinr, whether civil or criminal, is begun that in Lender's gcx�d faith judgment muld result in forfeiture of thc
<br /> Property or othcrWise materiatly impair the lien creatcif by'his Security la�trument ar L.erxier's cecuriry interest. Borrower may
<br /> cure such a default and�Yinstat�,a�providal in paragraph 18,by cxucing thc:actiem ar pmceeeiing to be d��mis�ecl with a rulinb
<br /> that, in Lcndcr's goocl lsith detcrntiinasion, precludes forfciture of ihe Bcttmw�er's inter�t in thc Pmperty ��r other material
<br /> impairment of thc I�cn cre,vted by this �r�rity Instnament or Lcncicr's u;curety interr�t. Borrowcr �hall also hs: in dcfauit if
<br /> Borrow•er, during thc loan ap;�lication process.gave►n�terially false or inaccu�ate infoimation o�statermnts ro C.ender(or failed
<br /> to providc !_enderµ•ith any mat-rial information)in connection w�ith the loan evidenc::d by the Note, including, hut not limited
<br /> to, rePrGSen.;ations ec�ncerning Bc::row�e's occupancy of the Prnperty as a prixipal rCSidert:e. 1f this Securiry Instrument is on a
<br /> leasehold, Borcower shu(1 comply with a!1 the provisions of the leau. If fiorcowe� acquires fee title to the Pmperty, the
<br /> leaselsolJ and the fee title shall rx�t R,ergc unlac�Lcnde�agrees to the merger in writir�b.
<br /> 7. Proteciion of l.ender's Ri�h��in the Properi�. If Bcxrowec fails to perform the covenams and agreements cnn�ained in
<br /> �his Securiry Instrument, or there is a!e�al proceeding that may significamly affect L,ender's rights in the Property (such as a
<br /> proceeciing in a•ankruptc}•, pmbate, for�-ondemnation or forfi'eiture or to enforce ia�vs or regulations), then Lender may do and
<br /> pay for whatever is nccessary to pmtcct tize value oi the Proµ.rty arxl L.ender's rights in the Property. Lender's actions may
<br /> include pa�•ing any sums srcured by a lien which i� priority over this Securiry Irutrument, appearing in rnurt, �aying
<br /> re�nable attarneys' fees and entering an the Property to make repairs. Although Lxnder may take action uncier this paragraoh
<br /> 7, Lender dncs not hs�ve to d�sc�.
<br /> Any a�munts disbursc� by Leader ��,nder thic parag�aph 7 shall hccome uciciitiona! debt of &xmwer sccured by this
<br /> Security In�trumcn:. Unle��s Borrower ancf i..crzder agree to other tem��of payme�t, these amounts �hall bear interest fr<�m the
<br /> date of disbursement at the Note rate and ;;hall be payable, with interc.tt, uEwn notice from Lender l0 8orrower requcsting
<br /> payment.
<br /> 8. \iort�a�e Insurance. lf l.ender rcqurrcci mortgage in�urance as a condition cf making the loan securecf by this Sccurity
<br /> Instnimcnt, Rormwer shall pay the premiurrt:� requircd to maintain the mortgagE insurance in el7ect. If, for any :eason, the
<br /> riiortgage insurancc coverape requireci by Lerx.!et laps�or cea.� ro be in effect, 6orrower shall pay the premiums required tn
<br /> obtain co�•erage substantiall�•equivalent to the mortgage insurance previousty in effect, at a cost substantiaUy equivalent to the
<br /> rost to 8otm��•er cf the mortgsge insurance pr�viausl}• in effect, from an alternate rm�rtgage ir,surer approved by Lender. lf
<br /> sabstantially eyuivalent mcrt�a�e insurance co���•rage is not available, Bormw•er shall pay to l.ender each montF a sum equal to
<br /> one-t�elfth of the yeariy mortgage in�urance premium being paid by Borrower when the insurance coverage lapsed or�eased to
<br /> be in effect. T_endier wi11 accept, use and retain tlx.se paymenu� �loss reserve in lieu of moRgage insurance. Loss reserve
<br /> Form 3028 9/90
<br /> Pspe 3 0!6
<br /> i 7.:
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