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200302235
<br />DOC ID # 0002055886657088
<br />5. 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
<br />hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This
<br />insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender
<br />requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right m
<br />disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower
<br />in pay, in connection with this Loan, either: (a) a one -time charge for flood zone determination, certification
<br />and tracking services; or (b) a one -time charge for flood zone determination and certification services and
<br />subsequent charges each time remappings or similar changes occur which reasonably might affect such
<br />determination or certification. Borrower shall also be responsible for the payment of any Pecs imposed by the
<br />Federal Emergency Management Agency in connection with the review of any flood zone determination
<br />resulting from an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance
<br />coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular
<br />type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect
<br />Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or
<br />liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges
<br />that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that
<br />Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional
<br />debt of Borrower secured by this Security Instrument These amounts shall bear interest at the Note rate from
<br />the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right
<br />to disapprove such politics, shall include a standard mortgage clause, and shall name Lender as mortgagee
<br />and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. if
<br />Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. It
<br />Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or
<br />destruction of, the Property, such policy shall include a standard mortgage clause and shall time Lender as
<br />mortgagee and /or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice in the insurance carrier and lender. Lender may
<br />make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing,
<br />any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied m
<br />restoration or repair of the Property, if die restoration or repair is economically feasible and Lender's security is
<br />not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance
<br />proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed
<br />to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse
<br />proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest m be paid on such
<br />insurance proceeds, Lender shall not be required in pay Borrower any interest or earnings on such proceeds.
<br />Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance
<br />proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or
<br />Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this
<br />Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance
<br />proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim
<br />and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance
<br />carrier has offered of settle a claim, then Lender may negotiate and settle the claim. The 30 -day period will
<br />begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or
<br />otherwise, Borrower hereby assigns to Lender (a) Borrower's rights many insurance proceeds in an amount
<br />not to exceed the amounts unpaid under the Now or this Security Instrument, and (b) any other of Borrower's
<br />rights (other than the right in any refund of untamed premiums paid by Borrower) under all insurance policies
<br />covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the
<br />insurance proceeds either m repair or restore the Properly or to pay amounts unpaid under the Note or this
<br />Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrowers principal residence
<br />within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees
<br />in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which
<br />are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property an deteriorate or commit waste on the Property. Whether or
<br />not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property
<br />from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant m Section 5 that
<br />repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
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