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<br />P.g~ J 0' 6
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<br />93- 1..t0895
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now eXisting or hereaftel erect~ on ~he
<br />'property insun:d against loss by fire, hazards included within the term "exleooed covera~e" and any other hazards, mcludmg
<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 ~he hlsurance shall be choseI' by Borrower subject to Lender's approval
<br />which shall not be unreasonably withheld. if Borrower falls to maintain coverage described above, Lender may, l\t Lender's
<br />option, obtain coverage to protect Lender's rights in the Property in accNdance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender ar'" shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower :::hall promptly give to Lender all receipts of
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender,
<br />Lender may make proof of loss if not made promptly by Borrowe..
<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 ','epair is economically fea<;ible 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 proceeds shall be applied to the slims
<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 Ler.der that the insurance carrier has offered to settle a claim, then
<br />Lender may collect the insurance procc-eds. Lender may use the proceeds to repair or restore the Property or ~~ pay sums
<br />secured by this Security Instrument, whether or not then due. The30.day period will begin when the not;('...;-; Ji....r.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal snail 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 in"urance policies Bnd proceeds resulting from
<br />ddmage to the; Property prior to the acquisition shall 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; Horrower's Loan Application; Leaseholds,
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days afte~ the execution of
<br />this Security Instrumen! and shall continue to occupy the Property as Borrower's principal residence for at 1e.1st 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. Borrower shall not destroy, damage or impair thc
<br />Property, allow the Property to deteriorate, or commit Waste on the Property. Borrower shall b~ in default if any forfeiture
<br />action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment coold result in forfeiture of the
<br />Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrowcr may
<br />cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismis8cd with a mling
<br />that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Pro~rty or other material
<br />impairment of the lien created by this Security Instriment or Lender's security interest. Borrower shall also he in ~cf~u!t if
<br />Borrower. during the loan application process, \!ave n"t....;~I!:, ~.=L"_ ," ~;;,,!;CUrate lOroonation or statements to Lender (or failed
<br />to prov;rl.. I 6:"'~~ '.. ::;, ~;;j .,..lie; Il1: llIi-ormation) in connection with the loan evidt"~~ "'J hy the Note, including, hut not limited
<br />10, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security lns\rumcnt is on a
<br />leasehold. Borrower shall r.omply 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 peri. '~m the covenants and agreements contained in
<br />this Security Instrument, or there is a legal proceeding that may significantly llffect Lender's rights in thc Property (such as a
<br />proceeding in bankmptcy. probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender muy do and
<br />pay for whatever is necessary to protect the valuc 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 Instrum =l1t, appearing in court, paying
<br />rcasnnable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph
<br />I 7, Lender docs no: 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 Instrum~nt. Unless Borrower and Lender agree to other terms of pl\yment, these amounts shall bear interest from the
<br />date of disbursement at {he Note rate and shall be payable, with interest, upon notice from Lender to Borrower 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 shaH 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, Barrower shall pay the premiums reQuircd to
<br />obtain coverage substantially equivalent to the mortgage insurance previously in en.-d, 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 shail pay to Lender each month a sum equal to
<br />one.\ wel fth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ce.1sed to
<br />I be in effect. 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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