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<br /> 5. Harard or Property Insurance. Borrower shali keep the improvemenra now existing or hereafter erected on the
<br /> Property insured againstloss by fire, hazards includ� within the term "extended �overage" and any other hazards, including
<br /> floais or floatine, far which Lender requi�es insurance. This insurance shafl be maintained in the amounts and for the periods
<br /> that L,ender requires. The ir.surance careier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br /> w��ich shall not be unreasc,nably withheld. If Borrr�wer fails :o maintain coverage de.scribeii above, Lender may, at Lender's
<br /> option,obtain coverage to protect LPrtder's rights in the Property in accordance with paragraph 7. •
<br /> Ali insurance policies and renewals shall be acceptable to L.ender and shall include a standard mortgage clause. L,ender
<br /> shall have the right to tiold the policies and renewals. If Lender requires, Bacrower shall prompNy give to L.ender ali receipts of
<br /> paid premiums and renewal notices. In the eve�t of loss,Borrower sha(t give prompt notice to the insurance carrier and C.ender. '�
<br /> L.ender may make proof of loss if not made prompdy by Borrower. - �
<br /> Uniess L,eizder and Borrower otherwise a ree ir.writin �
<br /> g g, insurance proceeds shall be appli�to resto ration or repair of the
<br /> Property damag�, if the restoration or repair es erbnomical�y feasible and Lender's security is not lessened. If the restoration or �
<br /> repa'vr is no!economically feasible o;Lender's security would be lessened, the insurance proceeds shall be applied to the sums �
<br /> secured by this Security Instrument, whether or not then due, with any ezcess p::id to Borrower. If Borrower abandons the o
<br /> Property, or does not answ�r within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then �
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or res[ore tlie Yraperty or to pay sums .�
<br /> secured by t�his Security Instrument, whetl;.r or not then due.Ttie 30-day period wiii beoin when the notice is given. •
<br /> Unless Lender and Borrawer otherwise ..gree in writing, any appiication of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly paymenu referred to in paragra�hs I and 2 ar change the ameunt of itie payments. If� '
<br /> under para.graph 21 the Property is acquired by Lender, Borrower's right to any insc�ance policies and proceeds�eaulting from
<br /> damage tu the Property prior to thi acqu;sition shall pacs ta Lender 2o the extent oi the sums secured by this Security Instrument
<br /> immediatel��prior to the acyuisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection uf the Property; IBorrower's I.oan Application; Leasehoids.
<br /> Borrower shall occupy, establish,and u5.the Property as Borro�ver's principal residence w�ithin sixty days after the exec;ution of
<br /> this Secarity Instrument and shall coniinoe to occupy the Property as Borrower's principal residence for at least one year after
<br /> the date of occupancy, unless Lender othenvise agrees in writing, which consent shal! not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Bonower's control. Borrower shall nut destroy, damage or impair the
<br /> Property, allow thc Property to deteriorate, or commit waste on the Property. Borrower shali be in default if any forfeiture
<br /> action or pra•eeding, whether civil or criminal, is�begun that in Lender's good faith judgmeni could result in forfeiture of the
<br /> Property or otherwise materially irtipair the lien created by this Security lnstrument or Lender's security interest. Borrower may
<br /> cure such a defauit and minstate,as providecl in paragraph 18, by causing the action or proceeding to be dismissed with a ruling
<br /> that, :n L.ender's goad faith deterniinatio�, precludes forfeiture of the Borrower's interest in the Property or other materiai
<br /> impaiiment of the lien created by this Secu�ity Instroment or T.ender's security interest. Borrower shal! xlso be in default if
<br /> Borrower, cluring the ioan application process,gave�naterially false or inaccurate informatinn or statements to L.ender(or failed
<br /> ta provide Lend�r with any material informaticr.) in cor.nection with the loan evidenced by the Note, including, but not limited
<br /> to, repr�s�ntations concerr�ing Borrower's occupancy af the Property as a principal residen,:e. If this Security Instrument is on a
<br /> leaseholci, Borrower sha11 comply with all the provic_ions of the lease. If Borrower acquires fee title to the Property, the
<br /> leaseh�ld and the fee tit�e shall not merge unless Lertder agrees to the merger in writing.
<br /> 7. Proiection of�enc3er's Rights in the Property, If Bonower fails to perfonn the covenants and agreem�nts contained in
<br /> this �ecuriry Instrument, or there is a legal proceeding that may ,significantly affect I,ender's rights in the Property (such as a
<br /> preweeding in bankniptcy, probate, for condemnation or forfeiture or to enforce laws or regutations), then L.ender may do and
<br /> p:ry for whatever is necessary ro protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br /> znclude pay�ing aziy sums secured by a iien which has priority over (Flf9 Security Irtstrument, appearing in court, paying
<br /> reasonable attorncys' fees and entering on the Property to make repairs. Although Lender may take action uncier this parag,aph
<br /> 7, Lender does nat have to do so.
<br /> Any am�unts disbursed by Lender under this paragraph 7 shall become additional debt of' $orcower secured by this
<br /> Secunty Instrument. Unless Borrower and L.endcr agree to other terms of payment, these amounts shall bear interest from the
<br /> date of' disbursement at the Note rate and shall be payable, with interest, upon notice from L.ender to Borrower requesting
<br /> payment.
<br /> 8. liort�age lnsurance. It'Ler.der requireci mortgage ins�rance a�s a condition of making the loan secureci by rhis Security
<br /> Instrumcnt, Borrower shali pay the premiums required to maintain the mongage ansurance in effect. If, ?'or any reason, the
<br />, mortgaee insur.�nce covera�e required by I.,ender lapses or cea5es to be in effect, Borrower shall pay the premiums required to
<br /> obtain coverage substantialiy equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortga�e insurance previously in effect, from an alternate mortgage insurer aRproved by Lender. If
<br /> substanti:illy equivaient mortgage insurance coverage is not available, Borrower shall pay to Lender each mo;�th a sum equal to
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to
<br /> be in effect. I.ender wil! accept, use and retain th�e payments as a loss reserve in lieu of mortgage insurance. Loss reserve
<br /> Form 3028 9/30
<br /> Page 3 c1 6
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