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' ' 99 �07386
<br /> CASE ��: LAP343460148845 LOAN ��: 1107292
<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 Security Instrument,whether or not then due.Tfie 30-day period will begin when the notice is given.
<br /> Unless Lender and Bonower 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 pazagraphs 1 and 2 or change the amount of the payments.If under paragraph
<br /> 21 the Property is acquired by Lender, Bonower'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; Leasehotds.
<br /> Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of
<br /> this Security Inswment 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 Bonower's conirol.Bonower 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 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 Bonower acquires fee tide to the Property, the leasehold and the fee tide 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 Inswment, 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, appearing in court, paying reasonable
<br /> attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this pazagraph 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 Security
<br /> Instrument. Unless Bonower and Lender agree to other terms of payment, these amounts shall bear 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 /> �. 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 Bonower of the mortgage insurance previously in effect, from an alternate moRgage 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-twelfih of the yearly mortgage insurance premium being paid by Bonower 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 period
<br /> that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the
<br /> premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage
<br /> 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. L,ender shall give
<br /> Bonower notice at the time of or prior to an inspecrion specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any awazd 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 Bonower.In the event of a partial taking of the PropeRy 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
<br /> the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the
<br /> taking. 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 immediately before the taking is less than the amount of the sums secured immediately before the taking, unless
<br /> Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the
<br /> sums 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 /> awazd or settle a claim for damages,Borrower 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 /> 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 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 not
<br /> operate to release the liability of the original Bonower or Bonower's successors in interest. Lender shall not be required to
<br /> Form 30 8 9
<br /> ��6V(NE)�s2oe�.o2 CHL(06/96� Page 3 of 6 Initial�
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