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200405442
<br />either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower
<br />hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not
<br />to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other
<br />of Borrower's rights (other than the right to any refund of unearned premiums paid by
<br />Borrower) under all insurance policies covering the Property, insofar as such rights are
<br />applicable to the coverage of the Property. Lender may use the insurance proceeds either
<br />to repair or restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's
<br />principal residence within 60 days after the execution of this Security Instrument and shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after
<br />the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not
<br />be unreasonably withheld, or unless extenuating circumstances exist which are beyond
<br />Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower
<br />shall not destroy, damage or impair the Property, allow the Property to deteriorate or
<br />commit waste on the Property. Whether or not Borrower is residing in the Property,
<br />Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that
<br />repair or restoration is not economically feasible, Borrower shall promptly repair the
<br />Property if damaged to avoid further deterioration or damage. If insurance or condemnation
<br />proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration
<br />in a single payment or in a series of progress payments as the work is completed. If the
<br />insurance or condemnation proceeds are not sufficient to repair or restore the Property,
<br />Borrower is not relieved of Borrower's obligation for the completion of such repair or
<br />restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property.
<br />If it has reasonable cause, Lender may inspect the interior of the improvements on the
<br />Property. Lender shall give Borrower notice at the time of or prior to such an interior
<br />inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan
<br />application process, Borrower or any persons or entities acting at the direction of Borrower
<br />or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate
<br />information or statements to Lender (or failed to provide Lender with material information)
<br />in connection with the Loan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this
<br />Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's
<br />interest in the Property and /or rights under this Security Instrument (such as a proceeding
<br />in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may
<br />attain priority over this Security Instrument or to enforce laws or regulations), or
<br />SNE08 Rev 10/03/00 Page 8 of 18 Initials:' FORM 3028 1101
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<br />either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower
<br />hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not
<br />to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other
<br />of Borrower's rights (other than the right to any refund of unearned premiums paid by
<br />Borrower) under all insurance policies covering the Property, insofar as such rights are
<br />applicable to the coverage of the Property. Lender may use the insurance proceeds either
<br />to repair or restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's
<br />principal residence within 60 days after the execution of this Security Instrument and shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after
<br />the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not
<br />be unreasonably withheld, or unless extenuating circumstances exist which are beyond
<br />Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower
<br />shall not destroy, damage or impair the Property, allow the Property to deteriorate or
<br />commit waste on the Property. Whether or not Borrower is residing in the Property,
<br />Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that
<br />repair or restoration is not economically feasible, Borrower shall promptly repair the
<br />Property if damaged to avoid further deterioration or damage. If insurance or condemnation
<br />proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration
<br />in a single payment or in a series of progress payments as the work is completed. If the
<br />insurance or condemnation proceeds are not sufficient to repair or restore the Property,
<br />Borrower is not relieved of Borrower's obligation for the completion of such repair or
<br />restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property.
<br />If it has reasonable cause, Lender may inspect the interior of the improvements on the
<br />Property. Lender shall give Borrower notice at the time of or prior to such an interior
<br />inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan
<br />application process, Borrower or any persons or entities acting at the direction of Borrower
<br />or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate
<br />information or statements to Lender (or failed to provide Lender with material information)
<br />in connection with the Loan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this
<br />Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's
<br />interest in the Property and /or rights under this Security Instrument (such as a proceeding
<br />in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may
<br />attain priority over this Security Instrument or to enforce laws or regulations), or
<br />SNE08 Rev 10/03/00 Page 8 of 18 Initials:' FORM 3028 1101
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