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<br /> including floods or flooding, for wtuch Lender requires insurance. This insurance shall be maintained in the amounts and
<br /> for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Bonower subject to
<br /> Lender's approval which shall not be unreasonably withheld. If Bonower fails to maintain coverage described above,
<br /> Lender may, at Lender's optioa, obtain coverage to protect Lender's rights in the Property in accordance with paragraph
<br /> 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires, Bonower sha11 promptly give to Lender
<br /> all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br /> carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br /> of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br /> restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br /> applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br /> Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br /> offered to settte a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br /> the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
<br /> when the notice is given.
<br /> Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the rrrontlily payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br /> from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by tlus Security
<br /> Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preserva6on, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Bonower's principal residence within sixty days
<br /> after the execution of this Se�urity Instrument and shall continue to occupy the Property as Borrower's principal residence
<br /> for at least one year after the date of occupancy, unless Lender otherwise agr�s in writing, wluch consent shall not be
<br /> unreasonably withheld, or unless extenuating circumstances ezist which are beyond Borrower's control. Bonower shall not
<br /> destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Bonower
<br /> shall be in default if any forfeiture action or proccecling, whether civil or criminal, is begun that in Lender's good faith
<br /> judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security
<br /> Instrument or Lender's se�urity interest. Bonower may cure such a default and reinstate, as provided in paragraph 18, by
<br /> causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes
<br /> forfeitute of the Bonower's interest in the Property or other material impairment of the lien created by this Security
<br /> Instrument or Lender's security interest. Bonower shall also be in default if Bonower, during the loan application process,
<br /> gave 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 Note, including, but not limited to, representations concerning �
<br /> Bonower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Bonower shall
<br /> comply with all the provisions of the lease. If Bonower acquires fee title to the Property, the leasehold and the fee title
<br /> shall not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lender's Rights in the Property. If Bonower fails to perform the covenants and agreements
<br /> contained in tlus S�urity Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br /> Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations),
<br /> then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the
<br /> Property. Lender's actions may include paying any sums s�ured by a.lien which has priority over tlus Security
<br /> Instrument, appearing in court, paying neasonable attorneys' fees and entering on the Property to make repairs. Although !
<br /> Lender may take action under this paragraph 7, Lender does not have to do so.
<br /> Any amounts disbursed by F.ender unde; this paragraph� shall become additianal debt of Borrower secured by this I
<br /> Security Instrument. Unless Bonower a�d Lender agree to other terms of payment, these amounts shall bear interest from
<br /> the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Bonower i
<br /> requesting payment. �
<br /> 8. 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, for any
<br /> reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Bonower shall pay the
<br /> premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost
<br /> substantially equivalent to the cost to Bonower of the mortgage insurance previously in effect, from an alternate mortgage
<br /> insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Bonower shall pay
<br /> to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Bonower when
<br /> the insuraace coverage lapsed or cea.sed to be in effect. Lender will accept, use and retain these payments as a loss reserve
<br /> in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage
<br /> insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender
<br /> again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in
<br /> effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written
<br /> agreement between Bonower and Lender or applicable law. Form 3026 9/90 fpage 3 of 61
<br /> BANKERS SYSTEMS,INC.,ST.CLOUD,MN 68302(i-800-397-2341)FORM MD-t-NE 2/6/91
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