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<br />:93- 110894
<br />5. Hazard or Property Insurance. Borrower shall keep the improvement'" !lOW existing or ,r,;-'rea?t'er erected on the
<br />Propel1Y insured agai.1st loss by fire, hazards included within the term .ext~l,ded coverageft and any other hazards, including
<br />floods or flooding. for which Lender requires im.urance. This insurance shall be maintained in the amount'i and for the periods
<br />that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approvnl
<br />which shall not be unreasonably v:ithheld. If Uorrower 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 inSUl~lOce policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the pol!cies ar:d renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br />paid premiums and renewal notices, ln the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may mal<e proof of loss if not made promptly by Borrower.
<br />Unless Lender alJd Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br />Property dam1ged, if the restoration or repair is economically fe:lSible and Lender's se.::urity is not lessened. If the restoration or
<br />repair is not economically feasible or Lender's sl".curity would be lessened. the insul1'lnce 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 />Propel1y. or does not answer within 30 days a notice from Lender that the insursnC1e 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 Instrumen', 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 applica!ion of proceeds to principal shall not extend or
<br />postpone tIle 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 from
<br />damage t6 the Property prior to the acquisitiCiI1 shall pass to Lender tn the extent of the sums secured by this Security Instrument
<br />immediately prior te the acquisition.
<br />6. Occupancy, Prc-servation, Maintenance and Protection of the Property; Borrower's Losm Application; Lea'icholds.
<br />Borrower shall occupy, .::stablish. and use the Property as Borrower's principal residence wilhin sixty days after the eXl~cution of
<br />this Security Irlstr'Jmellt and shall :::ontinue to occupy the Property as Borrower's principal residence for atlenst one year after
<br />the date of occupancy. unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br />extenuating circumstances exist which are beyond Borrower's control. Horrower 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 m' criminal. is ~gun tll',!t in Lender'r, good faith judgmer:lt 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 paragraph 18, by causing the action or proceeding to be dismissed with It ruling
<br />that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in thePropcrty or other material
<br />impainnent of the lie~ 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 hy the Note, including, but not limited
<br />to, representations concernin3 Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a
<br />leasehold. Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, ',he
<br />lzasehold and the fee title shall not uerge un~e~s Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenanls and agreements contained in
<br />this Security Instrument, or there is a legal proceeding that may significantly affect Lendcr"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 Securily Instrument, appearing in court, puying
<br />reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragruph
<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 required mOl1gage 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 insuranc;:: 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 effce:t. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
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<br />Form 3028 9/90
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<br />Pago J of 6
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