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99 11218�
<br /> 3. Application of Payments. All payments received by the Lender under the Note or this Security
<br /> Instrument shall be applied by the Lender to the Note or Mortgage in such order of application as the Lender may
<br /> determine.
<br /> 4. Liens. Trustor shall promptly discharge any lien which has priority over this Security Instrument unless
<br /> Trustor: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)
<br /> contes[s in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's
<br /> opinion operate to prevent the enforcement of the lien; or(c)secures from the holder of the lien an agreement satisfactory
<br /> to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject
<br /> to a lien which may attain priority over this Security [nstrument, Lender may give Trustor a notice identifying the lien.
<br /> Trustor shall satisfy the lien or take one or more of the actions set fortl�above witliin 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. 'Trustor shall keep tl�e improvements now existing or}iereailer erected
<br /> on the Property insured against loss by fire, hazards included within the term "extended coverage"and any other hazards,
<br /> including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and
<br /> for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Trustor subject to
<br /> Lender's approval which shall not be unreasonably withheld. If Trustor 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 witli paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and sliall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires,Trustor shall promptly give to Lender all
<br /> receipts of paid premiums and renewal notices. In the event of loss, Trustor shall give prompt notice to the insurance
<br /> carrier and Lender. Lender may make proof of loss if not made protnptly by Trustor.
<br /> Unless Lender and Trustor 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 may, at
<br /> the option of the Lender, be applied to the sums secured by this Security Inslrument, whether or not then due, wilh any
<br /> excess paid to Trustor. If Trustor abandons tl�e Property,or does not answer witl�in 30 days a notice from Lender tliat tl�e
<br /> insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use tl�e
<br /> proceeds to repair or restore the Property or to pay sums secured by this Security Instrument,whetl�er or not then due. Tlie
<br /> 30-day period will begin when the notice is given.
<br /> Unless Lender,Trustor and Borrower otherwise a ree in writin an a lication of roceeds to rinci al shall not �
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<br /> extend or postpoue tl�e due date of t��e monthly payments referred to in paragraphs 1 and 2 or change the amount of the
<br /> payments. lf under paragraph 21 the Property is acquired by Lender,Trustor's right to any insurance policies and proceeds
<br /> resulting from damage to the Property prior to the acqoisition shall pass to Lender to the extent of the sums secured by tl�is
<br /> Security Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Trustor's Loan
<br /> Application; Leaseholds. Trustor shall occupy,eslablish,and use the Properly as Trustor's residence and shall continue to
<br /> occupy the Property as Trustor's principal residence for at least one year after the date of occupancy, unless Lender
<br /> otlierwise agrees in writing, which consent sl�all not be unreasonably withheld, or unless extenuating circu►nstances exist
<br /> wliicl� are beyond Trustor's control. Trustor shall not destroy, damage or impair the Property, allow tlie Property to
<br /> deteriorate, or commit waste on the Property. Trustor shall be in default if any forfeiture action or proceeding, whether
<br /> civil or cri►ninal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise
<br /> materially impair the lien created by this Security Instrument or Lender's security interest. Trustor may cure such a default
<br /> and reinstate, as provided in paragrapl� 18, by causing the action or proceeding to be dismissed with a ruling tl�at, in
<br /> Lender's good faith determination, precludes forfeiture of the Trustor's interest in tlie Property or otlier material
<br /> irnpairment of the lien created by this Security Instrument or Lender's security interest. Trustor sliall also be in default if
<br /> Trustor, during the loan application process, gave materially false or inaccurate information witl� respect to this Security
<br /> Instrument,such as false representations concerning Trustor's occupancy of the Property as a residence.
<br /> 7. Protection of Lender's Rights in the Property. If Trustor fails to perform the covenants and
<br /> agreements contained in this Security lnstrument,or there is a legal proceeding that may signif icanNy affect Lender's rights
<br /> in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or tc� enforce laws or
<br /> regulations),then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br /> in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br /> Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br /> Lender may take action under this paragraph 7,Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt secured by this Security
<br /> Instrument. Unless the Trustor and Lender agree to other terms of payment,these amounts shall bear interest from the date
<br /> of disbursement at the Note rate and shal) be payable, with interest, upon notice from Lender to Trustor requesting
<br /> payment.
<br /> 8. Mortgage Insurance. Lender has not required mortgage insurance as a condition of making the (oan
<br /> secured by this Security Instrument.
<br /> 9. Inspection. Lender or its agent may make reasonab(e entries upon and inspections of the Property.
<br /> Lender shall give Trustor notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
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