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,�:. 9�• 105428
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the 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 Borrower. If Borrower abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance cazrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by
<br /> 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
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under
<br /> paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to
<br /> the 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;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the
<br /> execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one
<br /> year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or
<br /> unless extenuating circumstances exist which are beyond Bonower'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 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 determination, precludes forfeiture of the Borrower'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 Bonower, 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, Borrower
<br /> shall comply with all the provisions of the lease. If Bonower acquires fee title 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 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 the Property
<br /> (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do
<br /> and 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 reasonable
<br /> attomeys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender
<br /> does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Bonower secured by this
<br /> Security Instrument. Unless Bonower and Lender agree to other terms of payment,these amounts shall beaz interest from the date of
<br /> disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Bonower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instrument, Bonower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason,
<br /> the 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 to
<br /> Bonower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially
<br /> equivalent mortgage insurance coverage is not available,Borrower shall pay to Lender each month a sum equal to one-twelfth of the
<br /> yearly mortgage insurance premium being paid by Bonower 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 may no longer be
<br /> required,at the option of Lender,if mortgage insurance coverage(in the amount and for the period that Lender requires)provided by an
<br /> insurer approved by Lender again becomes available and is obtained. Bonower shall pay the premiums required to maintain
<br /> mortgage insurance in effect,or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any
<br /> written agreement between Bonower and Lender or applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall
<br /> give Bonower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any awazd or claim for damages, direct or consequential, in connection with
<br /> any 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 /> Form 3028 9/9(1 (page 3 of 8 pages)
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