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<br /> 93- UJU40
<br /> 5. Hazard or Property Insurance. Borrower shall keep the iinprove;nents now existing or hereafter erected on the
<br /> Property insured agzinst loss by fire, hazards included within the term -extended coverage" and any other hazards, including
<br /> floods or flooding, for which Lender' r_ quires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance wrier providing the insurance shall be chosen by Bonower subject to Lender's approval
<br /> which shall not be unreasonably withb,-Id. 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 renetivajs shall be rtc-ceptahle to Lender and shall include a stwKiard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals, If Lender requires, Borrower shall promrxly give to Lender all receipts of
<br /> paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurutce carries and Lender.
<br /> Lender may make proof of loss if rot made promptly by Borrower;
<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 repair is toonomically 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 rhall 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 day!; 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 Instrument, whedwr or not then ,hue. 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 I and 2 or change the amount of the payments. If
<br /> j under paragraph 21 the Property is acgt.ired by bender, Bonower's right to any insurance policies and prrceads resulting from
<br /> damage to the Property prior to the amc.isition shall pass to Lender to the extent of the sums secured by this Security Instrument
<br /> immediately prior to the acquisition.
<br /> i 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Lrasehotds.
<br /> Borrower shall occupy, establish, an a use the Property as Borrower's principal residence within sixty days after the execution of
<br /> this Security Instrument and shall continue to otxupy the Property as Rcrrower's principal residence for at least 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 the
<br /> Property, allow the Pnaperty to deteriorate, or commit waste on the Pmperly. Borrower shall be 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 :,end reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling
<br /> that, in Lender's good faith dct°mrination, pteclades forfeiture of the Borrower's interest in the Property or other material
<br /> impairment of the lien crest A 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, but not limited
<br /> to. repres:ntations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument Is on a
<br /> leasehold, Borrower shat) 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 agreements 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 sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br /> reasonable aiwmeys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph
<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, Mort.-age Insurance. If Lender required mortgage insurance as a condition of making the loan secure,, by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any mason, the
<br /> mortgage insurance coverage required b Borrower obtain coverage substantial) equivalent t the mortgage insurance r.rebe in e, viously in eect, at a cost nstant ally equ vale tttto the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br /> suhstantially equiv dent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to
<br /> one-twelfth of !hc 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 these paymen s as a loss reserve it lieu of mortgage insurance. Loss reserve
<br /> Form 3028 9/90
<br /> peer, 3 of 6
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