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200200009
<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 to 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 to any insurance proceeds in an amount not
<br />to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights
<br />(other than the right to any refund of unearned 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 to repair or restore the Property 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 Borrower's principal
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
<br />otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating
<br />circumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property.
<br />Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent
<br />the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
<br />damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or
<br />restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds
<br />for the repairs and restoration in a single payment or in a series of progress payments as the work is completed.
<br />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
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
<br />Borrower notice at the time 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
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide
<br />Lender with material information) in connection with the Loan. Material representations include, but are not
<br />limited to, 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
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a
<br />legal 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
<br />lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower
<br />has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect
<br />Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing
<br />the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not
<br />limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing
<br />in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this
<br />Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes,
<br />but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and
<br />windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have
<br />utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so
<br />and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or
<br />all actions authorized under this Section 9.
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<br />Initial
<br />4 6(NE) (0005) Page 7 of 15 Form 3028 1 /01
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