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insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to
<br />Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within sixty days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
<br />otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating
<br />circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br />Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default in
<br />any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment
<br />could result in forfeiture of the Property or otherwise materially impair the lien created by this Security
<br />Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in
<br />paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br />determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of
<br />the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br />Borrower, during the loan application process, gave materially false or inaccurate information or statements to
<br />Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by
<br />the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a
<br />principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions
<br />of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless
<br />Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or
<br />to enforce laws or regulations), the Lender may do and pay for whatever is necessary to protect the value of the
<br />Property and Lender's rights in the Property. Lender's actions may including paying any sums secured by a
<br />lien which has priority over this Security Instrument, appearing in court, paying reasonable attorney's fees and
<br />entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender
<br />does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower
<br />secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these
<br />amounts shall bear interest from date of disbursement at the Note rate and shall be payable, with interest, upon
<br />notice from Lender to Borrower requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan
<br />secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage
<br />insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to
<br />be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the
<br />mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
<br />mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br />substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each
<br />month a sum equal to one -twelfth of the yearly mortgage insurance premium being paid by Borrower when the
<br />insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss
<br />reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of
<br />Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an
<br />insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums
<br />required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for
<br />mortgage insurance ends in accordance with any written agreement between Borrower and Lender or
<br />applicable law.
<br />9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the
<br />Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause
<br />for the inspection.
<br />10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of
<br />condemnation, are hereby assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this
<br />Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking
<br />of the Property in which the fair market value of the Property immediately before the taking is equal to or
<br />greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless
<br />Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced
<br />by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured
<br />immediately before the taking, divided by (b) the fair market value of the Property immediately before the
<br />taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair
<br />market value of the Property immediately before the taking is less than the amount of the sums secured
<br />immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law
<br />otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or
<br />not the sums are then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within
<br />30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option,
<br />either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not
<br />when due.
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