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<br /> All insurance policies and renewals sha11 be acceptable to Lender and sha11 include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals.If Lender requires,Borrower shall promptly give to Lender all
<br /> receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br /> carrier and 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 restaration ar repair of
<br /> 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 Securiry Insttument, whether or not then due, with any excess paid to Bortower. If -
<br /> Bortower abandons the Property, or does not answer within 30 days a notice from Lender [hat the insurance carrier has
<br /> offered to settle a claim,then Lender may collect the insurance proceeds.Lender may use the proceeds to repair or restore the
<br /> Property or to pay sums secured by this Security Insttument,whether or not then due.The 30-day period will begin when the
<br /> notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing,any application of proceeds to principal sha11 not extend 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 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 unmediately prior to the acquisition.
<br /> 6. Occupancy,Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds.Bortower shall occupy,establish,and use the Property as Borrower's principal residence within sixty days after
<br /> the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br /> 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 are beyond Bonower's control. Bonower shall not
<br /> destroy,damage or impair the Property,allow the Property to deteriorate,or commit waste on the Property. Bonower 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
<br /> Lender's security interest.Borrower may cure such a default and reinstate,as provided in paragraph 18,by causing the action
<br /> ar 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 Instsument or Lender's security
<br /> interest.Borrower sha11 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 Bortower's occupancy of the Property as a
<br /> principal residence.If this Security Instrument is on a leasehold,Bortower shall comply with all the provisions of the lease.
<br /> ff 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 Bortower 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
<br /> Property(such as a proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),then
<br /> Lender may do and pay for whatever is necessary to protect the value of the Properry and Lender's rights in the Property.
<br /> Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument,appearing
<br /> in court,paying reasonable attorneys' fees and entering on the Property to make repairs.Although Lender may take action
<br /> under this pazagraph 7,Lender 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
<br /> Security Instrument.Unless Borrower and Lender agree to other terms of payment,these amounts shal l bear interest from the
<br /> date of disbitrsexnent at the Note rate and shall be payable,with interest,upon notice from Lender to Borrower requesting
<br /> payment.
<br /> S. 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
<br /> premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost
<br /> substandally equivalent to the cost to Borrower of the mortgage insurance previously in effect,from an alternate mortgage
<br /> insurer approved by Lender.If substantially equivalent mortgage insurance coverage is not available,Bonower shall pay to
<br /> Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the
<br /> insurance coverage lapsed or ceased to be in effect.Lender will accept,use and retain these payments as a loss reserve in lieu
<br /> of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if martgage insurance
<br /> coverage(in the amount and for the period that Lender requires)provided by an insurer approved by Lender again becomes
<br /> available and is obtained.Bortower shall pay the premiums required to maintain mortgage insurance in effect,or to provide a
<br /> loss reserve,until the requirement for mortgage insurance ends in accordance with any written agreement between Bonower
<br /> and Lender or applicable law.
<br /> Page 3 oi 7 NE-2079-0899
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