|
200010853
<br />LOAN #: 3815488
<br />damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or
<br />restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds
<br />for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property,
<br />Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. If it has
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
<br />Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to
<br />provide Lender with material information) in connection with the Loan. Material representations include, but
<br />are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is
<br />a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this
<br />Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
<br />enforcement of alien which may attain priority over this Security Instrument or to enforce laws or
<br />regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is
<br />reasonable or appropriate to protect Lender's interest in the Property and rights under this Security
<br />Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing
<br />the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which
<br />has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to
<br />protect its interest in the Property and/or rights under this Security Instrument, including its secured position
<br />in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate
<br />building or other code violations or dangerous conditions, and have utilities turned on or off. Although
<br />Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or
<br />obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized
<br />under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
<br />secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease.
<br />If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender
<br />agrees to the merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason,
<br />the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insurance and Borrower was required to make separately designated payments
<br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage
<br />substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to
<br />the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer
<br />selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall
<br />continue to pay to Lender the amount of the separately designated payments that were due when the insurance
<br />coverage ceased to be in effect. Lender will accept, use and retain these payments as a non - refundable loss
<br />reserve in lieu of Mortgage Insurance. Such loss reserve shall be non - refundable, notwithstanding the fact that
<br />the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings
<br />on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in
<br />the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes
<br />available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower
<br />shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non - refundable loss
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement
<br />between Borrower and Lender providing for such termination or until termination is required by Applicable
<br />Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During
<br />such repair and restoration period, Lender shall have the right to hold such Miscellan oceeds until
<br />Initials:
<br />dM 6A(NE) (ge0s).02 CHL (03/00) Page 6 of 11 Form 3028 3/99
<br />
|