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<br />93-' :11.6898
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<br />s. Hazard or Property Insurance. Borro.....c:r shall keep the improvements now existing or hereafter erected on the
<br />Pror::rty insured against loss by fire, hazards included within the term "extended coverage" and any other hal.ards, inclu~ing
<br />floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the peTlods
<br />that Lender require;-,. The insurance carrier providing the insurance shall be chosen by Bonuwer subject to Lender's approval
<br />which shall not be unreasonably withheld. If Borrower 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 insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall 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 Borrower.
<br />Unless Lender and Borrower otherwise agr~ in writing, insurance proceeds shall be applied to restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible 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 sums
<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 Lender that the insurance 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 Inst:ument, 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 application of proceeds to principal shall 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 from
<br />damage to the Property prior to the acquisition shall pass to Lender to L.e extent of the sums secured by this Security Instrumellt
<br />immediately prior to the acquisition.
<br />(i. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds,
<br />Borrower shall occupy. estab!ish, and use the Property as Borro.,,ver's principal residence within sixty days after the execution of
<br />this Security Instrument and shaH continue to occupy the Property as Borrower's principal residence for at least one year after
<br />the date of occupancy, unless Lender otherwis~ 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 the
<br />Property, allow the: Property to deteriorate, or commit waste on the Property. Borrower Shllll he in default if any forfeiture
<br />action or proceeding. whether civil or criminal. is begun that in Lender's good faith judgment 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 Ireinstate. as provided in paragraph 18, by caus:ng the action or proceeding to be dismissed with a ruling
<br />that, in Lender's good faith determination. precludes forfeiture of the Borrower's interest in the Property or other material
<br />impairment of lhelien 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 by the Note, including, hut not limited
<br />to, repre~ent:!.t;()ns concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is 011 a
<br />leasehold. Borrower shall comply 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 perform the covenants and agreement:'> contained in
<br />this Security Instrument, or there is a legal proceeding that may significantly affect Lender'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 SUIllS secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br />reasonable attorneys' fees and entering on the Propnty to make repairs. Although Lender may take action under this paragraph
<br />7. Lender docs not havc to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured hy this
<br />Security Ins,rument. Unless Borrower and Lender agree to othcr 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 mortgage insurance as a condition of making the loan secured by this Security
<br />InstrUlrlCnt, 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 rCGuired to
<br />ohtain coverage substanlialiy equivalen! to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br />cost to Borrower of the mortgage insurance previously in effect, frOm an alternate mo!'tgage insurer approved hy Lender. If
<br />suhstantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month 1I sum equnl 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 effect. Lender will accept, use and retain ~hese payments as a Joss reserve in lieu of mortgage insurance. Loss reserve
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<br />Form 3028 9/90
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<br />P.g.. 3 01 6
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