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99'1�SSiZB LOAN #: 8196076
<br /> Unless Lender and Bonower otherwise agree in writing, insurance proceeds sha11 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 Borrower. If Bonower 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. Lender may use the proceeds to repair or restore the Property or to pay sums secured
<br /> by this Securjty Instniment, 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 pazagraph
<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 Bonower's principal residence within sixty days after the execution of
<br /> this Security Instrument and sha11 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 Property,
<br /> 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 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, Borrower
<br /> shall comply with all the provisions of the lease.If Borrower 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 contained in
<br /> this Security Instrument, or there is a legal proceeding that may significantly 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, appeazing in court, paying reasonable
<br /> attorneys' fees and entering on the Property to make repairs.Although Lender may take action under this paragraph 7,I.ender does
<br /> not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br /> 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 Security
<br /> Instrument, Bonower shall pay the premiums required to maintain the mortgage nvsurance 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 altemate mortgage insurer approved by Lender.If substantially
<br /> equivalent mortgage insurance coverage is not available, Bonower shall pay to Lender 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 option 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 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 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 shall
<br /> 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 market
<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 /> r the takin .
<br /> sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately befo e g
<br /> Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the
<br /> Property imtnediately 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 Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an
<br /> award or settle 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 Securiry Instrument, whether or not then due.
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