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<br /> 93-:1
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br /> floods or flooding, for which Lender requires insurance. This insurance shall b,: maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower 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 ai,d 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 bender.
<br /> Lender may make proof of loss if not 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 economically feasible and Lender's security is not lessened. If the resto-3tionor
<br /> repair is ncst 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 noticr,, 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, whether or not then due. The 30-day period will begin when the notice is given.
<br /> U:.iless 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 /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insuce damage to the Property briar to the acquisition shall pass to Lender to the extent of the sum.~securedaby this Security In trument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Ptotection of the Property, Borrower's Loan Application; Leaseholds.
<br /> Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the exect,tion of
<br /> this Security Instrument and shall continue to occupy the Property as Borrower'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 Property to deteriorate, or commit waste on the Property. 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 /> curc such default and 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 determination, precludes forfeiture of the Borrower's interest in the Property or other material
<br /> impairment of the lien 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, but not limited
<br /> to, representations concerning Borrower's occupancy of the Property as a principal residence, If this Security instrument is on a
<br /> leaschold, 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 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 attorneys' 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 di-,bursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br /> .security Instrument. Uni,^ss 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 mortgage 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 th
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. It
<br /> substantially equivalent niertgege insurance coverage is not available, Borrower shall pay to Lender each month it sum equal to
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Borrower where the insurance coverage lapsed or ceased to
<br /> be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
<br /> n,a, 3 of a Form 3028 9/90
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