|
� 99�os�4o
<br /> LOAN ��: 2015165
<br /> Unless Lender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br /> Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br /> repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br /> secured by this Security Instrument, whether or not then due, with any excess paid to Bonower. If Borrower abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds. I.ender may use the proceeds to repair or restore the Property or to pay sums secured
<br /> by this Security Instrument,whether or not then due.The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing,any application of proceeds to principal shall not extend or postpone
<br /> the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph
<br /> 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the
<br /> Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately
<br /> prior to the acquisition.
<br /> 6.Occupancy,Preservation,Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br /> Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execuuon of
<br /> this Security Insirument 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 exisc which are beyond Borrower's control. Borrower shall not destroy,damage or impair the Property,
<br /> allow the Property to deteriorate, or commit waste on the Praperty. Borrower shall be in default if any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or
<br /> otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a
<br /> default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in
<br /> Lender's good faith determinauon,precludes forfeiture of the Bonower's interest in the Property or other material impairment of
<br /> the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower,during the
<br /> loan application process, gave materially false or inaccurate information or statements to Lender(or failed to provide Lender with
<br /> any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br /> concerning Borrower's occupancy of the Property as a principal residence.If this Security Instrument is on a leasehold, Bonower
<br /> shall comply with all the provisions of the lease. If Borrower acquires fee tide to the Property, the leasehold and the fee title shall
<br /> 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 contained in
<br /> this Security Inswment, or there is a legal proceeding that may significandy affect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay
<br /> for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include
<br /> paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable
<br /> attorneys' fees and entering on the Property to make repairs.Although Lender may take action under this paragraph 7,Lender does
<br /> not have to do so.
<br /> Any amounts disbursed by L.ender under this paragraph 7 shall bec:ome additional debt of Borrower secured by this Security
<br /> Instrument. Unless Bonower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
<br /> disbwsement at the Note rate and shall be payable,with interest,upon notice from Lender to Borrower requesting 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 cost
<br /> to Borrower of the mortgage insurance previously in effect,from an alternate mortgage insurer approved by Lender.If substantially
<br /> equivalent mortgage inswance coverage is not available,Borrower shall pay to I,ender each month a sum equal to one-twelfth of
<br /> the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect.
<br /> Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no
<br /> longer be required,at the oprion of Lender,if mortgage insurance coverage(in the amount and for the period that Lender requires)
<br /> provided by an insurer approved by Lender again becomes available and is obtained. Bonower shall pay the premiums required to
<br /> maintain mortgage insurance in effect,or to provide a loss reserve,until the requirement for mortgage insurance ends in accordance
<br /> 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 /> condemnarion or other taking of any part of the Property,or for conveyance in lieu of condemnation,are hereby assigned and shall
<br /> be paid to L.ender.
<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 Bonower.In the event of a partial taking of the Property in which the fair mazket
<br /> value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security
<br /> Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this
<br /> Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the
<br /> sums secured immediately before the taking, divided by (b) the fair mazket value of the Property immediately before the taking.
<br /> Any balance shall be paid to Bonower. In the event of a partial taking of the Property in which the fair market value of the
<br /> Property immediately before the taking is less than the amount of the sums secured immediately before the taking,unless Borrower
<br /> and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums
<br /> secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Bonower, or if, after notice by Lender to Bonower that the condemnor offers to make an
<br /> award or setde a claim for damages,Bonower fails to respond to Lender within 30 days after the date the notice is given,Lender is
<br /> authorized to collect and apply the proceeds, at its option,either to restoration or repair of the Property or to the sums secured by
<br /> this Security Instrument,whether or not then due.
<br /> Initials:
<br /> ��-6H(NE) �sao>>.o3 CHL(01/98) Page 3 of 6 Form 028 9/90
<br />
|