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<br /> for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to
<br /> Lender's approval which shall not be unreasonably withheld.If Borrower fails to maintain coverage described above,Lender
<br /> may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with pazagraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.Lender
<br /> shall have the right to hold the policies and renewals.If Lender requires,Borrower shall promptly give to Lender all receipts
<br /> of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br /> 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
<br /> of 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 Borrower
<br /> abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to
<br /> settle a claim,then Lender may collect the insurance proceeds.Lender may use the proceeds to repair or restore the Property
<br /> or to pay sums secured by this Security Instrument, whether or not then due.The 30-day period will begin when the notice
<br /> is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments.
<br /> If under paragraph 21 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. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, estabtish, and use the Property as Borrower's principal residence within sixty days
<br /> after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence
<br /> for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br /> unreasonably withheld,or unless extenuating circumstances exist which aze beyond Borrower's control. Borrower shall not
<br /> destroy,damage or impair the Property,allow the Property to deteriorate, or commit waste on the Property.Borrower shall
<br /> be in default if any forfeiture action or proceeding, whether civil or criminal,is begun that in Lender's good faith judgment
<br /> could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's
<br /> security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or
<br /> proceeding to be dismissed with a ruling that, in Lender's good faith determination,precludes forfeiture of the Borrower's
<br /> interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security
<br /> interest.Borrower shall also be in default if Borrower,during the loan application process,gave materially false or inaccurate
<br /> information or statements to Lender(or failed to provide Lender with any material information)in connection with the loan
<br /> evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as
<br /> a principal residence.If this Security Instrument is on a leasehold,Borrower shall comply with all the provisions of the lease.
<br /> If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the
<br /> 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
<br /> may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property.Lender's
<br /> actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court,
<br /> paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under
<br /> this paragraph 7,Lender does not have 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 requesting
<br /> payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br /> Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any
<br /> reason,the mortgage insurance coverage required by Lender lapses or ceases to be in effect,Borrower shall pay the premiums
<br /> required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially
<br /> equivalent to the cost to Borrower of the mortgage insurance previously in effect,from an alternate mortgage insurer approved
<br /> by Lender.If substantially equivalent mortgage insurance coverage is not available,Borrower shall pay to Lender each month
<br /> a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage
<br /> lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage
<br /> insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in
<br /> ST&L#NE6-3.NEW Form 3028 9/90 (page 3 of 7 pages)
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