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200306652
<br />If Borrower fails to maintain nay of the coverages described above, Lender may obtain insurance coverage, at Lender's
<br />option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage.
<br />Therefore, such coverage shall cover Lender, but might or might nut protect Borrower, Borrower's equity in the Property, or
<br />the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was
<br />previously in effect Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed
<br />the cost of insurance that Borrower could have obtained- Any amounts disbursed by Lender under this Section 5 shall become
<br />additional debt of Borrower securcd by this Security Instrument. These amounts shall bear interest at die Note rate from the
<br />date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Leader's tight to disapprove
<br />such policies, shall include a standard mortgage clause, and shall name Lender as nmrtgagee and/or as an additional loss
<br />payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly
<br />give to Lender all receipts of paid prenitons and renewal notices. If Borrower obtains any form of insurance coverage, not
<br />otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage
<br />clause and stall name Lender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />loss if not trade promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of We Property, if
<br />the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to mold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Property to ensure the work has been completed to Leader's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or to a series of progress
<br />payments as the work is completed Unless an agreement is made in writing or Applicable Law requires interest to be paid on
<br />auch insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for
<br />public adjusters, or other Wind patties, retained by Borrower shall not be paid out Of the insurance proceeds and shall he the
<br />sale obligation of Borrower. If the restoration or repair is not mononcally feasible or Leader's security would be lessened,
<br />the insurance proceeds shall be applied to the solos secured by this Security Instrument, whether or not then due, with the
<br />excess, if any, paid to Borrower. Such insurance proceeds shall he applied in tine order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim mid related
<br />manors. If Boauwcr does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a
<br />claim. then Lender may negotiate nod settle the claim. The 30 -day period will begin when the notice is given- In either event,
<br />or if Lender acquires the Property under Sectiml 22 or otherwise, Borrower hereby assigns to Leader (a) Borrower's lights to
<br />any insuranec fnmccxds in an amount not to exceed the anouuts unpaid under the Note or this Security Insounnad, and
<br />(b) any other of Borrower's rights (other than the right to any refired of unearned premiums paid by Borrower) under all
<br />insumuce policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use
<br />the insuranec proceeds either to repair or restore the Property or N pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60
<br />days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not
<br />tic uureasoiably withheld, or unless extenuating cireuunstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Properly; Inspections. Borrower shall not destroy, lounge
<br />or impair the Property, allow tine Property to deteriorate or commit waste on We Property. Whether or not Borrower is
<br />residing in the Property, Borrower shall unallerin the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is dcternni ied pursuant to Section 5 that repair or restoration is not
<br />economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damge- If
<br />tnsumaee or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be
<br />responsible fur, repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may
<br />disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not
<br />relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property , If it has reasonable cause, Lender
<br />may inspect the interior of the improvements un the Property. Lender shall give Borrower notice at the time of or prior to
<br />such an tractor inspection specifying such reasonable cause
<br />N'ERRA.SKA— Singlc Family— Fannle MaNl'reddie Ni UNIFORM INSTRUMENT Form ]028 Iron
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<br />ITEM191A50011) (Pube 1, fl(nueer) MOrdereeaI M69a9993nfec Mara fl91
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