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<br />in writing to such lien or Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner
<br />acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal
<br />proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of
<br />the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that
<br />any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above
<br />within ten (10) days of the giving of notice.
<br />Borrower shall pay to Lender such fees and other charges as may now or hereafter be required by regulations of
<br />Lender, and pay or reimburse Lender for all of Lender's fees, costs, and expenses in connection with any full or partial
<br />release or subordination of this instrument or any other transaction affecting the property.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and
<br />for the periods that Lender requires. The insurer providing the insurance shall be chosen by Borrower subject to Lender's
<br />approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, at Lender's
<br />option Lender may obtain coverage to protect Lender's rights in the Property pursuant to paragraph 7.
<br />All insurance policies and renewals shall be in a form acceptable to Lender and shall include a standard mortgagee
<br />clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the
<br />insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<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
<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 thirty (30) days a notice from Lender that the insurance carrier
<br />has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The thirty (30) day
<br />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.
<br />If after acceleration 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 this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation, Maintenance, and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the
<br />Property. Borrower shall maintain the improvements in good repair and make repairs required by Lender. Borrower shall
<br />comply with all laws, ordinances, and regulations affecting 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
<br />the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest.
<br />Borrower may cure such a default by causing the action or proceeding to be dismissed with a ruling that, in Lender's good
<br />faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien
<br />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
<br />Lender with any material information) in connection with the loan evidenced by the Note. If this Security Instrument is
<br />on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property,
<br />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
<br />contained in this Security 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 secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender is not required to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and 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 Borrower
<br />requesting payment.
<br />8. Refinancing. If at any time it shall appear to Lender that Borrower may be able to obtain a loan from a
<br />responsible cooperative or private credit source, at reasonable rates and terms for loans for similar purposes, Borrower
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