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5. Hazard or Property Insurance. Borrower sha11 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, including
<br /> floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance cazrier providing the insurance sha11 be chosen by Borrower subject to Lender's approv.�l
<br /> which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's GO
<br /> option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. �
<br /> All insurance policies and renewals sha11 be acceptable to Lender and sha11 include a standazd mortgage clause. Lender
<br /> sha11 have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of �
<br /> paid premiums and renewal notices. In the event of loss, Borrower sha11 give prompt notice to the insurance carrier anc Lender. �
<br /> Lender may make proof of loss if not made promptly by Borrower. �
<br /> Unless Lender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or rep�a.i� of tFe k,:..�
<br /> Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the res�oration 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 abandor,s tr,e
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a cl�:m, the:�
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay surr.s
<br /> secured 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 ea:.e�d cr
<br /> postpone the due date of the monthly payments referred to in pazagraphs 1 and 2 or change the amount of the p��r.r:;r.ts. 1f
<br /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security :r.�trument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan A�F?ica*;oa.�;
<br /> Leaseholds. Bonower sha11 occupy, establish, and use the Property as Borrower's principal residence within sixty day�s afier tt�e
<br /> execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for :��t .�a:,t or e
<br /> yeaz after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonablv ���itl�helcl,
<br /> or unless extenuating circumstances exist which aze beyond Borrower's control. Borrower sha11 not destroy, damage cr impair
<br /> the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower sha11 be in default if ar,y i�rfeiture
<br /> action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiclire of tt�e
<br /> Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Bcr i��r;e� m�.y
<br /> cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a r ulir.g
<br /> that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other ::��xer;,,l
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Borrower sha11 also be in uei�.�it .f
<br /> Borrower, during the loan application process, gave materially false or inaccwate information or statements to Lender (�r fail��
<br /> to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but nc: li:n:t_d
<br /> to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrurn�i.t i� �n a
<br /> leasehold, Borrower sha11 comply with all the provisions of the lease. If Borrower acquires fee title to the Prc�ert�, tt.e
<br /> 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 c�:�.�i..ed i.l
<br /> this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (��,�:: as a
<br /> proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender �r:ay do w,��
<br /> pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's acxi�:�� rnay
<br /> include paying any sums secured by a lien which has priority over this Security Instrument, appearing in cou;t. p�yi��b
<br /> reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this 1�ar:arap:l
<br /> 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower securec: �� th.s
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts sha11 beaz interest =ro:n t:`.e
<br /> date of disbursement at the Note rate and sha11 be payable, with interest, upon notice from Lender to Borrower �-::qu�sti:.g
<br /> payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by tl-��s Se.;�:rity
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any rc�vu ,, :r�
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower sha11 pay the premiums rec�uired to
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equiva:ent :o t}��
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by :�..r��er. if
<br /> substantially equivalent mortgage insurance coverage is not available, Borrower sha11 pay to Lender each month a su�r. f:c;aal ,.�
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or �eased to
<br /> be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage inswance. L:;��. rtser�,�
<br /> Form 30.2 /8�J
<br /> �-sR(Nq(9212).04 Page 3 of 6 Ini!ia� - ----_--
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