|
. 99 10908 �_
<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"e�rtended coverage" and any other hazards, including
<br /> floods or flooding, for which Lender requires insurance.This insurance shall be maintainedin the amounts and for the periods
<br /> that Lender requires.The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br /> which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's
<br /> option,obtain coverage to protect Lender's rights in the Property in accordance with paragraph 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 of
<br /> paid premiums and renewal notices.In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Barrower otherwise agree in writing, insurance proceeds shall be applied to restorationor repair of the
<br /> Property damaged,if the restorationor repair is economically feasible and Lender's security is not lessened.If the restorationor
<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 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
<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 e�rtend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under paragraph2l the Property is acquired by Lender,Borrower's right to any insurance policies and proceeds resulting from
<br /> damageto the Property prior to the acquisition shall pass to Lender to the eatent of the sums securedby this Securiry Instrument
<br /> immediately 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 Borrower's principal residencewithin sixty days after the execution of
<br /> this Security Instrumentand shall continue to occupy the Property as Borrower's principal residencefor at least one year after
<br /> the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonablywithheld, or unless
<br /> e�ctenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br /> Property, allow the Property to deteriorate,or commit waste on 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 the
<br /> Property or otherwise materially impair the lien createdby this Security Instrumentar Lender's security interest.Borrower may
<br /> cure such a default and reinstate,as provided in paragraphl8, by causing the action or proceedingto be dismissed with a ruling
<br /> that, in Lender's good faith determination,precludes forfeiture of the Borrower's interest in the Property or other material
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br /> Borrower,during the loan applicationprocess,gave materially false or inaccurateinformationor statementsto Lender(or failed
<br /> to provide Lenderwith any materialinformation)in connectionwith the loan evidencedby the Note, including, but not limited
<br /> to, representationsconcerning Borrower's occupancy of the Property as a principal residence.If this Security Instrumentis on a
<br /> leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the
<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 Borrowerfails to performthe covenants and agreementscontainedin
<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 condemnationor forfeiture or to enforce laws or regulations),then Lender may do and
<br /> pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br /> include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br /> reasonable attorneys'fees and entering on the Property to make repairs.Although Lender may take action under this paragraph
<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 secured by this
<br /> Security Instrument.Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the
<br /> 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 requiredmortgage insurance as a condition of making the loan securedby this Security
<br /> I Instrument,Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the
<br /> Imortgage 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
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br /> II substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to
<br />; one-twelfth of the yearly mortgage insurance premiumbeing paid by Borrower 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 /> i Form 3028 9/90
<br /> i �-6RINE) Iszi21.o2 Page 3 of 6 Initials:�
<br /> � �
<br />�
<br />�
<br />�
<br /> I
<br /> i
<br />�
<br /> 30283.ftm 12/96
<br /> �
<br /> �
<br />
|