|
3. Hazard Insurance. a) Borrower shall keep the improvements now existing or hereafter erected on C' �01�(�8
<br />the Property insured against loss by fire, hazards included within the tern 'extended coverage', and any
<br />other hazards, Including floods or flood, for which Lender requires Insurance. This insurance shall be
<br />maintained In the amounts and for the periods that Lender requires. The insurance carrier providing the
<br />insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably
<br />withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain
<br />coverage to protect Lender's rights in the Property in accordance with paragraph 5.
<br />b) All insurance policies and renewals shall be acceptable to Lender and shall include a standard
<br />mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires,
<br />Borrower stall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of
<br />loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />loss if not made promptly to Borrower.
<br />c) Unless Lender and Borrower otherwise agree In writing, Insurance proceeds shall be applied to
<br />restoration or repair of the Property damaged, if the restoration or repair Is economically feasible and
<br />Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's
<br />security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br />Property or does not answer within 30 days a notice from Lender that the insurance carrier has offered to
<br />settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair
<br />or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The
<br />30-day period will begin when the notice is given.
<br />d) Except as provided in subparagraph 3(e) below, should partial or complete destruction or damage
<br />occur to the Property, Borrower hereby agrees that any and all instruments evidencing insurance
<br />proceeds received by Lender as a result of said damage or destruction, shall be placed In a non- Interest
<br />bearing escrow account with Lender. At Lender's discretion, Lender may release some or all of the
<br />proceeds from escrow after Borrower presents Lender with a receipt(s), invoice(s), written estimates(s) or
<br />other document(s) acceptable to Lender which relates to the repair and/or improvements of the Property
<br />necessary as a result of said damage and /or destruction. Absent an agreement to the contrary, Lender
<br />shall not be required to pay Borrower any interest on the proceeds held in the escrow account. Any
<br />amounts remaining in the account after all repairs and/or improvements have been made to the Lender's
<br />satisfaction, shall be applied to the sums secured by this Deed of Trust, Deed to Secure Debt, or
<br />Mortgage. Borrower further agrees to cooperate with Lender by endorsing all, checks, drafts and/or other
<br />Instruments evidencing insurance proceeds; and any necessary documents. Should Borrower fail to
<br />provide any required endorsement and/or execution within thirty (30) days after Lender sends borrower
<br />notice that Lender has received an instnanent evidencing Insurance proceeds, or document(s) requiring
<br />Borrowers signature, Borrower hereby authorizes Lender to endorse said instrument and/or document(s)
<br />on Borrowers behalf, and collect and apply said proceeds at Lender's option, either to restoration or
<br />repair of the Property or to sums secured by this Deed of Trust, Deed to Secure Debt, or Mortgage. It is
<br />not the intention of either party that this escrow provision, and/or Lenders endorsement or execution of
<br />an instrument(s) and /or documerd(s) on behalf of Borrower create a fiduciary or agency relationship
<br />between Lender and Borrower.
<br />e) Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly payments referred to in paragraph 1 or orange the
<br />amount of the payments. If under paragraph 15 the Property is acquired by Lender, Borrowers right to
<br />any insurance policies and proceeds resulting from damage to the property prior to the acquisition stall
<br />pass to Lender to the extent of the sums secured by this Security Instrument.
<br />4. Preservation and Maintenance of Property; Lessehokfs; Condominiums; Planned Unit
<br />Developments. Borrower stall keep the Property in good repair and shall not commit waste or permit
<br />Impairment or deterioration of the Property and shall comply with the provisions of any lease If this Deed
<br />of Trust is on a leasehold. If this Dead of Trust Is on a unit in a condominium or a planned unit
<br />development, Borrower shall perform aft of Borrowers obligations under the declaration or covenants
<br />creating or governing the condominium or planned unit development, the by -laws and regulations of the
<br />condominium or planned unit development, and constituent documents.
<br />5. Protection of L.ender's Security. If Borrower fails to perform the covenants and agreements
<br />contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects
<br />Lenders Interest In the Property, then Lender, at Lender's option, upon notice to Borrower, may make
<br />such appearances, disburse such sums, Including reasonable attorneys' fees, and take such actions as is
<br />necessary to protect Lender's interest.
<br />Any amounts disbursed by Lender pursuant to this paragraph 5, with interest thereon from the date of
<br />disbursal, at the Note rate, shall become additional Indebtedness of Borrower secured by this Deed of
<br />Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable
<br />upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 5
<br />shall require Lenderto Incur any expense or take any action hereunder.
<br />6. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the
<br />Property, provided that Lender shall give Borrower notice prior to any such inspection specifying
<br />reasonable cause therefore related to Lenders interest in the Property.
<br />NE Dead or True Np 2 loan Number:173 8ee12334131000e677407
<br />230792 nedaad (Ray 08, 940)
<br />
|