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<br />retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower.
<br />If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds
<br />shall be applied to the sums secured by this Securi ty Instrument, whether or not then due, with (he excess, if any, paid
<br />to Borrower. Such 1 reactance proceeds shall be applied in the order provided for i a Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and
<br />related maulers. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lenderm ay negotiate and settle the came. The 30-day period will begin when the
<br />.mire is given. In either event, or if Lender acquires the Property under Section 22 or otherwise. Borrower hereby
<br />assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid
<br />under the Note or this Security Instrument, and (h) any other of Borrower's rights (other than the right to any refund
<br />of incorrect premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights
<br />are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Nate or Ibis Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Bruce river's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Properly to deteriorate or commit waste on Ilre Property. Whether or not
<br />Borrower is residing in the Property, Borrower shall maintain the Properly in order to prevent the Properly from
<br />deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or
<br />restoration is not economically feasible, Borrower shall promplly repair the Property if damaged to avoid further
<br />deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage In, or the Taking
<br />of, the Property. Borrower shall he responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in
<br />a series of progress payments as the work is completed. If the insurance or cundemnation proceeds are not sufficient
<br />to repair or restore the Properly, Borrower is not relieved of Borrower's obligation for the completion of such repair
<br />or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Properly. If it has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice in the time
<br />of or prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with
<br />material inforrnalimn) N connection with the Loan. Material representations include, but are not limited lo,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Properly and Rights Under this Security Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrument, (h) (here is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and /or rights corder (his Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condem nation or f nfei lure, for enforcement of a lien which may
<br />attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's Interest in (he
<br />Properly and rights under this Security Instrument, including protecting and/or assessing the value of the Properly,
<br />and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns
<br />secured by a lien which has priority river this Security Instrument; dd appearing in cone(; and (c) paying reasonable
<br />attorneys' fees la protect its interest in the Property and/or rights under this Security Instrument, including its secured
<br />position in a bankruptcy proceeding. Securing the Property includes, but is not limited lo, entering the Properly to
<br />make repairs, change lacks, replace or board up do on and windows, drain water from pipes, eliminate building or
<br />other code violations or dangerous conditions, and have cBBties turned on or off. Although Lender may takeacttiio�nn
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<br />Form 3028 Single Family Fannie MaelFretltlie Mac UNIFORM INSTRUMENT OocMagtCew..d coa m asa
<br />Form 3028 1/01 Page 6 of 13 www. tlocm�ic.rom
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