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2005109 200205680
<br />5. Hazard or Property Insurance. Borrower shall keep the imp vement, now existing or hereafter erected on the
<br />Property insural ntruiust loss by tire. hazards included within the term "extended coverage" and any other hazards, including
<br />floods or flooding, for which Lender requires insurance phis mint mice shall be mainmined in the amounts and for the periods
<br />that Leader requires- 'fhe insurance carrier providing the insurance shall be chosen by Borrower subject to Iender's approval
<br />which shall nut be unreasonably withheld_ If Borrower fails to maintain coverage described above, Louder may, at Lender's
<br />option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lcuder.
<br />Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lcnder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br />Property damaged. if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br />repair is not economically femohle or Lenders security would be lessened, the insurance proceeds shall be applied to the .sums
<br />secured h_v this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br />Property, or does not answer wilhin 30 days a notice from 1 ender that the insurance carricr has offered to settle a claim, then
<br />I ender may collect the insurance proceeds. Lender may use the proceeds to repair nr restore the Property or to pay sums
<br />samred by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given.
<br />Unless Lender and Rcurower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date 01 The monthly payments referred to in paragraphs I and 2 or charge the amount of the payments. If
<br />under paragraph 21 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting from
<br />damage to the Property prior to the acquisition shall pass to Leader to the extent of the sums secured by this Security Instrunent
<br />innnediately prior to the acquisition.
<br />h. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Rorrowcr shall occupy, establish, and use the Proper ty as Borrower's principal residence wilhin sixty days after the
<br />execution of this Soon "ty last, mncnt and shall continue to occupy the Property as Borrower's principal iesidence for at least no
<br />vear after the date of occupancy, unless Lcnder otherwise agrees in writing, which consent shall not be our withheld,
<br />or unless extenuating circumstances exist which are beyond Borrower's control, Borrower shall not destroy, damage or impair
<br />the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture
<br />action or proceeding, whether civil or criminal, is begun that in Lender's good fault judgment could result in toitemu'e of the
<br />Properly or ntherwiac materially impair the hen created by this Security Instrument or Lender's security interest. Borower may
<br />cure such a default and ounstme, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling
<br />that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material
<br />impairment of the lion created by this Security Instrument or Lender's security interest Borrower shall also be in default if
<br />Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed
<br />to provide Lender with any material information) in connection with the loan evidenced by the Nutc, including, but not limited
<br />lo. iepresentati on s c mccming Borrower's occupancy of the Property as a principal residenec If this Security Instrumunt is on a
<br />leasehold. Borrower shall comply will' all the provisions of the lease. If Borrower acquires fee title to the Property_ the
<br />leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Rorrowcr fails to perform the covenants and aprccments contained in
<br />this Security Instrument. or there is it legal proceeding that may signifcanrly affect Lender's rights in the Property (such as a
<br />proccediug in bankruptcy, probate, for condemnation or forfeiture or to entorce laws or regulations), then Lender may do and
<br />Pas for 'inar cr is uecevnry to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br />include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br />reasonable attorneys' fees and entering on the Property to make repairs Allhough Lender may take action under this paragraph
<br />7. Lcnder does not have to do so.
<br />Any annnutts disbursal by Lender under this paragraph 7 shall beconhe additional debt of Borrower secured by this
<br />Security Inshnmenl. Unless Rom'wcr and Leader agree to other terms of payment, these amounts shall bear interest from the
<br />date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lcnder to Borrower requesting
<br />payment
<br />N. Mortgage Insurance. 11 Lender required mortgage insurance as a audition of making the learn secured by this Security
<br />Instruncul. Borrower shall pay the fammums required to maintain the mortgage luminance in effccl. If for any reason, the
<br />mortgage insurance coverage required Inv Lender lapses or ccrosca to be in effect. Borrower shall pay the prcnhiums required to
<br />obtain coverage suhstantially equivalent to the mortgage insurance previously in cff"I, at a cost substantiaty equivalent to the
<br />coal to Borrower of the mortgage insurance previously in effccl, from an alternate nhortgage insurer approved by Lender. It
<br />wbtantielly cquivolmn mortgnge insurance coverage is nor available, Bon'owei shall pay to Lender each month a sum equal to
<br />one twelfth of the yearly mortgage insuranec premium being paid by Rorrowcr when the insurance coverage lapsed or ceased to
<br />be in effect Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurarhce. Loss reser'c
<br />Form 3028 l9119900�
<br />�� 6R(NE) 'vs, z'. as trans h m s o-usis/a-40111 Y'
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