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202401574
<br />and Lender's security is not lessened. If, in Lender's sole discretion, the restoration or repair is not economically
<br />feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br />Property, or does not answer within the number of days prescribed by Applicable Law as set forth in a notice from
<br />Lender to Borrower that the insurance carrier has offered to settle a claim, then Lender may collect the insurance
<br />proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security
<br />Instrument, whether or not then due. The period of time for Borrower to answer as set forth in the notice will
<br />begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments referred to in the sections titled Secured Indebtedness; Payment of
<br />Principal and Interest; Late Charges and Other Loan Charges and Funds for Taxes and Insurance or
<br />change the amount of the payments. If under the section titled Acceleration; Remedies, the Property is acquired
<br />by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to
<br />the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately
<br />prior to the acquisition.
<br />Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on
<br />the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is
<br />begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially
<br />impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default
<br />and reinstate, as provided in section titled Borrower's Right to Reinstate, by causing the action or proceeding to
<br />be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's
<br />interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's
<br />security interest. Borrower shall also be in default if Borrower, during the loan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />information) in connection with the loan evidenced by the Secured Indebtedness. If this Security Instrument is on
<br />a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br />contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and
<br />Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority
<br />over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to
<br />make repairs. Although Lender may take action under this section, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this section shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
<br />interest from the date of disbursement at the rate specified in the Secured Indebtedness and shall be payable, with
<br />interest, upon notice from Lender to Borrower requesting payment.
<br />Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br />Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If,
<br />for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower
<br />shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously
<br />in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,
<br />from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage
<br />is not available, Borrower shall pay to Lender each month a sum equal to one -twelfth of the yearly mortgage
<br />insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender
<br />will accept, use, and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments
<br />may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the
<br />period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained.
<br />Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br />© 2004-2022 Compliance Systems, LLC 192a2ca4•16e81 dad -2022.70.0.3
<br />Consumer Real Estate - Security Instrument 1)L2036 Page 4 of 9 www.compltancesystems.com
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