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200301956 coverage, not otherwise required by Iznder, for damage to, or destruction of; the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to die insurance carrier and Lender. Lender may make proof of loss fnot made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insuranceproceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Under shall have the right to hold such insurance proceeds until lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Under may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing.. Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sale obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, it any, paid to Borrower. Such insuranccproceeds shall be applied in the order provided for in Section 2. IfBorrower abandons the Property, Lender may tile, negotiate and settle any available insurance claim and related matters. If But rower does not respond within 30 days to a nrnice from Lender that the insurance carrier has offer oil to settle a claim, then Lender may negotiate and settle the claim. The 30 -day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (h) any other of Borrower's rights (other than the right to any refund ofunearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Under may, use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Propertyas Borrower's principal resideiwewithin 60 days after the execution of this Security Instrument aid shall continue to occupy the Property as Borrower's principal residence for at [cast one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing In value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking uf, the Property, Borrower shall be responsible far repairing or restoring the Property only if Under has released o proceeds for such purposes. lender mxydisIt proceeds forthe repairs and restoration masingle payment or in aseries of progress payments as the work is completed If the insurance or condemnation proceeds are not sufficient to repair or restore the Proparty, Borrower is nut relieved of Borr'ower's obligation for the completion ofsuch repair or restoration. Lender or its agent may make reasonable entries upon and inspections u[lhe Property. If it has reasonable cause, Lender may inspect the interior .(the iin rovennents on the Property. Under shall give Borrower notice at the time of or prior m such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Rorrowcr shall be in default if, during the Loan application process, Borrower or any persons a entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, in is leading, or inaccurate information or statements to Lender (or failed to provide Lender with material inforotat ion) in connection with the Loan. Material representations include, but are not limited m, representations concerning Borrower's occupancy ofthe Property as Borrower's principal residence. Y. Protection of Lender's Interest in the Property and Rights Under this Security Instrument If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Under's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enfomcrient ofalien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Fonder may do and pay or whatever is reasonable or appropriate to protect Ionder's intcest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and /or repairing the Property. lender's actions can include, but are not limited to' (a) paying any sums secured by alien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property, and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, dram water from pipes, eliminate budding or other code violations or dangerous conditions, and have utilities turned on or oft: Although Lender may take action under this Section 9, Lender does not have to do so and is not under any dutyor obligation to do so. It is agreed that Lender incurs no liability for not taking any oral] actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions ofthe [ease. IfBorrower acquires fee title to the Property, die leasehold and the fee title shall not merge unless Iznder agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. I( for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shal I pay the premiums required to obtain coverage substantial ly equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect Lender will accept, use and retain these pa}avents as a non - refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non- refundable, notwithstanding the fact that the Loan is ultimately paid in fidl, and Lender shall not be required to pay Borrower any interest or eamings on such loss reserve. Lender can no longer require loss reserve payments if Mort gage Insurm. coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Leander again becomes available, is obtained, and Lender requires separatelydesignmed payments toward the premiums for Mort gage Insurance. Iflonder required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non - refundable loss reserve, until Lendcr's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Burrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Iznder (or any entity that purchases the Nate) for certain lasses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. NERILVSKA Single Family—Fannie Mae /Freddie Mac UNIFORM INS'] KU'MEFT Form3038 1/01 (pngeJOf Npag 9751CV(1/02) 1652395 GOTO(0004241b)