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200200742
<br />coverag4 nn[ otherwise required by Lendep for damage In, or destruction oC, [he Prope,J,, such policy shall include a
<br />standard mortgage clause and shall name Lender as mortgagee and /or as an additional loss payee.
<br />In the ovenl.f loss, Borrower shall give prompt notice In the invnauce charier and Londe. Lender may make proof
<br />.[loss ifnot made promptly by Borrower. Unless Lrn er and But 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 Property, if
<br />the Iestoration or repair is economically feasible and Lender's wool try is not lessened. Dan ing such repair and restoration
<br />period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Property to ensure the work has been completed to Lender's satisfaction, provided that such inspclioil shall. be undertaken
<br />promptly. Lender Lilly disburse proceeds for the repairs and restoration in a single payment or in a seres of p r ogress
<br />payments as the work is completed Unless an agreement is made in writing or App lea to Law requires interest to be paid
<br />on such insurance proceeds, Lendershall not be required to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower shall not be paid out ofthe insurance proceeds and shall be
<br />the sole obligation of Barower, Ifthe restoration or repair is not economically feasible or Lender's security would be
<br />lessened, the insurance proceeds shall be applied to the sums seamed by this Security Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section?.
<br />If Borrower abandons the Property, Lender may file, negotiate and nettle any available insurance claim and related
<br />models. Ifl3orrower does not respond within 90 days to a notice from Lender that the insurance tamer has offered Iu senlea
<br />claim, their Leader may negotiate and settle the claim. 'the 30 -day period will begin when the notice is given. In either
<br />event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lcnder (a) Borrower's
<br />fights to any insurance proceeds in an amount I not to exceed the amounts unpaid under the Note or this Security Instrument,
<br />and (b) any other oform e
<br />Bwer' rights (other than the right to any refund ofuneartmed premiums paid by Borrower) under all
<br />rva ranee policies covering the Property, insofar as such rights are applicable to the coverage ofthc Property. Lender may
<br />use the insurance proceeds either to repair or restore the Properly or to pay amounts unpaid under the Note of this Security
<br />Instrument, whether or not then due.
<br />6. occupancy. [lot rower shall occupy, establish, and use tile Property as Bon'owcrsprincipal reslde)cewithin
<br />60 days after the cscuu run ofttis Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year ater the dale
<br />of occupancy unless Lender otherwise agrees in writing, which consent shot] not Ire unreasonably within, Id, a unless
<br />extenuating cirou n.,unces exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection ofthe Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or coolant waste
<br />on the Property Whether or not Burrower is residing in the Property, Borrower shall maintain the Properly in order to
<br />prevent the Property from deteriorating or decreasing in value one in its condition. Unless it is delcrignen pursuaml to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Properly if damuged In
<br />avoid further deterioration or damage. Ifinsuranee or condemnation proceeds are paid in connection with damage to, orthe
<br />taking of, (lie Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repave and restoration in a single payment m'in a series
<br />of progress payn)en(s as the work is completed. If the bran ance or condemnation proceeds ore not sit licienl to repair or
<br />restore the Property, Borrower is not 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 ofthe Property _ Ifilhasreasonablecause,
<br />Lender may inspect the Interior of the improvements on the Property. Lender shall girt Borrower notice at the lime ofor
<br />prior to such in interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Burrower or any persons at emtilies acting at the direction of Borrower or will) Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed )o provide Lender with material
<br />informat ion) in connection with the Loan. Material representations include, but are not limited to, representations concerning
<br />Borrmvcr's occupancy ofthe Properly as But principal residence.
<br />9. Protection of Lenders Interest in the Property and Rights Under this Securit Instrument, If
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, )l ) there is a legal
<br />P
<br />roceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instnnaent(sudn
<br />Is a proceeding in bankruptcy, probate, for condemnation or
<br />over this Security Instrument or to cnfurce laws or regulation
<br />may do and pay for whatever is reasonable or appropriate to
<br />Security Instrument, including protecting and/or assessing I
<br />Properly. Lender's actions can include, but are not limited m:
<br />this Security Instrument; (b) appearing in court; and (c) po
<br />Property and/or rights under Its Security Instrument, inctudl
<br />the Property includes, but is not limited to, entering. the flop
<br />and windows, drain cooler from pipes, eliminate building or of
<br />turned on or off Although Lcnder may take action under this
<br />duty or obligation to do so. It is agreed that Lender incurs no
<br />lure, for enforcement of,, lien which may attain priority
<br />-(c) Borrower has abandoned the Property, then Lender
<br />of Lender's interest in the Property and rights under this
<br />title ofthe Properly, and securing and /or repairing the
<br />paying any sums secured by alien which has priority over
<br />reasonable attorneys' fees to protect its interest in the
<br />secured position in a bankruptcy proceeding. Securing
<br />u make repairs, change Iocks, cc place or board up doors
<br />ode violations or dangerous conditions, and have utilities
<br />ion 9, Leader does not have to do so and is net under any
<br />it), for nut taking guy or all actions authorized under this
<br />oecuou v.
<br />Any amounts disbursed
<br />nt hall bear under this at th Section from tile idden a Borrower secured y this
<br />Security Instrument. These amounts shell bear inleresr at the Note rate frmnlhc date of disbursement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />Ifthis Security insinuator is on a leasehold, Borrower shall comply with all the provisions ofthe lease. IfBOrrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />10. Mortgage Insurance. If Lender required NJ In range Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to maintain tie Mortggage Insurance in of ucl. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to he available ti'om the mortgage insurer filar previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the preamors for Mortgage Insurance,
<br />Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage hog'anec previously
<br />in deal, at a cost substantially equivalent to the cost to Borrower ofthe Mortgage Insurance previously in effect, from an
<br />alternate mortgage insurer selected by Lender. ICsubstan[ially equivalent Mortgage Insuronce coverage is not available,
<br />Borrower shall continuem payto Leader the amount ofthe separately des ignored payments flint were duewhenthe illoolo e
<br />coverage ceased to be in effect. Lender will accept, use and retain these payments as o non- refimdable loss reserve in lieu of
<br />Mortgage Insurance. Such loss reserve shall be Lion- refundable, notwithstanding lire fact (flat the Loan is ultimately paid in
<br />full, and Leader shall not be required to pay Botrower any interest or Comings on such loss reserve. Lender can no longer
<br />require loss reserve psynents if Mortgage Insurance coverage (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Mortgage Insurance- If Lcnder required Mortgage Insurance as a condition ofmalang the
<br />Loan and Borrower was required to make separately designated paymems toward the premiums for Mortgage Insuronce,
<br />Borrower shall pay the premiums required m maintain Mortgage Insurance in effect. or to provide a emu- refundable loss
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agieenhenl between
<br />Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this
<br />Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Leader (or any entity that purchases the Note) &r certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />NEmiASKA -Said, F:nnily- Fannie Mae /Freddie Mae TWIFORM INS'FILUNIENT Form3028 INII (page 4 oJ811,11)
<br />9754CV0101) GlllLl
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