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200300575
<br />with material information) in connection with the Loan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security
<br />Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien
<br />which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has
<br />abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's
<br />interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of
<br />the Property, and seeming and/or repairing the Property. Lender's actions can include, but are not limited to: (a)
<br />paying any sums seemed by a hen which has priority over this Security Instrument, (b) appearing in court; and (c)
<br />paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument,
<br />including its seemed position in a bankruptcy proceeding. Securing the Property includes, but is not limited to,
<br />entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes,
<br />eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although
<br />Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation
<br />to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured
<br />by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and
<br />shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the
<br />merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
<br />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 ceases to be available from the mortgage insurer that previously
<br />provided such insurance and Borrower was required to make separately designated payments toward the premiums
<br />for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to
<br />the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
<br />Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially
<br />equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of
<br />the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will
<br />accept, use and retain these payments as a non - refundable loss reserve in lieu of Mortgage Insurance. Such loss
<br />reserve shall be non- reWndable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall
<br />not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
<br />reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided
<br />by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Mortgage Inaurance. If Lender required Mortgage Insurance as a condition of
<br />making the Loan and Borrower was required to make separately designated payments toward the premiums for
<br />Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
<br />provide a non - refundable loss reserve, until the Lender's requirement for Mortgage Insurance ends in accordance
<br />with any written agreement between Borrower and Lender providing for such temunafion or until temirnation is
<br />required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter
<br />into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms
<br />and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements.
<br />These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage
<br />insurer may have available (which may include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other
<br />entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or
<br />NRBRA!U�o,o Family —Famdo 51a reddk Mac OVIFORM INSTRUMENT Form 30281/01 (page 7ofl3pagaJ
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