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99 1108g9
<br /> 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 carrier providing the insurance shall be chosen by Borrower subject to Lender's approval ,
<br /> which shall not be unreasonably withheld. If Bonower 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 pazagraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and sha11 include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies h dev nt f loss,Borowe�r shall�gB e prompt notce othe gnsuranceecarr er1and Lenderf
<br /> paid premiums and renewal notices. In t
<br /> 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 the ,
<br /> Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br /> repair is not economically feasible or Lender's security would be lessened, the insurance prdceeds 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 Bonower otherwise agree in writing, any application of proceeds to principal shall not extend or ,
<br /> postpone the due date of the monthly payments refened to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under paragraph 21 the Property is acquired by Lender, Bonower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition sha11 pass to Lender to the extent of the sums secured by this Security Instrument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; ,
<br /> Leaseholds. Bonower sha11 occupy, establish, and use the Property as Borrower's principal residence within sixty days after the ,
<br /> execution of this Security Instrument and sha11 continue to occupy the Property as Borrower's principal residence for at least one ,
<br /> year after the date of occupancy, unless Lender otherwise agrees in writing, which consent sha11 not be unreasonably withheld, ,
<br /> or unless extenuating circumstances exist which aze beyond Bonower's control. Borrower sha11 not destroy, damage or impair ,
<br /> the Property, a11ow the Property to deteriorate, or commit waste on the Property. Bon'ower sha11 be in default if any forfeiture ,
<br /> action or proc,eeding, 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 created by this Security Instrument or Lender's security interest. Borrower may ,
<br /> cure such a default and reinstate, as provided in pazagraph 18, by causing the action or proceeding to be dismissed with a ruling ,
<br /> that, in Lender's good faith determination, precludes forfeiture of the Bonower'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 application process, gave materially false or inaccurate information or statements to Lender(or failed ,
<br /> to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited ,
<br /> to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a ,
<br /> leasehold, Bonower 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 Borrower fails to perform the covenants and agreements contained in
<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 condemnation or 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 pazagraph
<br /> 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 sha11 become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Bonower and Lender agree to other terms of payment, these amounts sha11 beaz interest from the
<br /> date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Bonower requesting
<br /> payment.
<br /> 8. 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
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage 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-twelfth of the yearly mortgage insurance premium being 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 /> Form 3028 9/90n
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