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• • y�9• 1�45�"�� Loan ID# 5560035017
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly 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 Lende:•, Borrower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br /> Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property;Borrower's Loan Application; Leaseholds. Borrower
<br /> shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this
<br /> Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the
<br /> date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating 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 if any forfeiture
<br /> action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the
<br /> Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower
<br /> may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a
<br /> ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other
<br /> material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in
<br /> default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender
<br /> (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but
<br /> not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br /> Instrument is on 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 /> 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this
<br /> Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Properry (such as a
<br /> proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and
<br /> pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br /> include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br /> reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this
<br /> paragraph 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br /> Securiry Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the
<br /> date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting
<br /> payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the 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 month a sum equal to
<br /> one twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to
<br /> be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
<br /> payments 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. Borrower
<br /> shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement
<br /> for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give
<br /> Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and
<br /> 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 Security Instrument,
<br /> whether or not then due, with any excess 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 equal to or greater than the amount of the sums secured by this
<br /> Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing> the sums secured by
<br /> roceeds multi lied b the following fraction: (a) the total
<br /> this Security Instrument shall be reduced by the amount of the p p Y
<br /> amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Properry immediately
<br /> before the 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 Properry immediately before the taking is less than the amount of the sums secured immediately before the
<br /> taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall
<br /> be applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an
<br /> award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given,
<br /> Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the
<br /> sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br /> 11.Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of
<br /> amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall
<br /> not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to
<br /> commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization
<br /> of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's
<br /> successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the
<br /> exercise of any right or remedy.
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