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""- RECORDe 2
<br />200206237 00205703
<br />coverage, not otherwise required by Lcndcr, for damage lo, or destruction of, the Property, such policy shall include a
<br />standard rnorlgage clause and shall name Lender as mortgagee and /or as an additional lase payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Leader may mike proof
<br />of loss if not made 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 the 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 hold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Properly to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Leader may disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />paymanlsas the work scoripleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid
<br />on such insurance proceeds, Lender shall not be required to pay Burrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower Shall not be paid out of the insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be
<br />Icsscncd, the insurance proceeds shall be applied to the sums secured 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 2
<br />ICBorrower abandons the Property, Lender Wray file, negotiate and settle any available insurance claim and related
<br />..ratters. If Borrower does not respond within 30 days to a notice from Lender tlmuhe insurance carrier has offered to settle
<br />claim, then Lcndcr may negotiate and settle the cluim. The 30 -day period will begin when the notice is given In either
<br />event, or if Lender acquires the Property Linder Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
<br />rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument,
<br />and (b) any other of Borrower's rights (other than the right to any refund of ur e'amed premiums paid by Borrower) under all
<br />insurance politics covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may
<br />use the insurance proceeds either to repair or restore the Property or to 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
<br />60 days after the execution of this Security IIStIUIUent and shall continue to occupy the Property as Borrower's principal
<br />I esidence for at least one year after the date
<br />of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br />extenuating circumstances exist which are beyond Borrower's control_
<br />7. Preservation, M am ten ance and Protection of the Proper try ;Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or commit waste
<br />on the Property. Whether or not Burrower is resding in the Property, Borrower shall maintain the Property in order to
<br />prevent the Property fiour 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 It if damaged to
<br />avoid further ddcrimutual or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the
<br />taking of, the Property, Borrower shall be responsible for repairing or resluring 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 a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or
<br />Texture 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 UCdte PIUPeiy. [fit has reasonable cause,
<br />Lcndcr stay inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time ofor
<br />prior to such an interior inspection .specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in del6alt iL during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Rorrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate Information or statements to Lender (or failed to provide Lender with material
<br />information) in connection with the loan. Material representations include, butare not limited M, representation concerning
<br />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 Inslmntenl, (b) there is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instmment(such
<br />as a proceeding in bankruptcy, probate, for condemnation or forficiturq fur enforcement of u lien which stay attain ptiorily
<br />over this Security Instrument or to enforce lases or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropriate to protect Leader's interest in the Properly and rights under this
<br />Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the
<br />Property . Lender's actions can include, but are not limited to: (a)paying any s'urns secured by a lieu which has Pllol'Ityaver
<br />this Security Instrument; (b) appearing in court; and (e) paying reasonable attorneys' fees to protect its interest in the
<br />Property and /or rights under this Security Instrument, including its secured position in a bankruptcy proceeding Securing
<br />the Property includes, but is not limited to, entering the Properyto make repairs, change locks, replace or board up doors
<br />and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities
<br />turned on m o1F. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any
<br />duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this
<br />Section 9.
<br />Any amounts disbursed by lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Securitylustrmnenl. These amounts shall bear interest at the Not e rate from the date of disbursement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />ICthis Security InstmLucia is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee tide shall not merge unless Leader agrees to the merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Lomi,
<br />Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage
<br />Insurance coverage required by !.ender ceases to be available hoar the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to obtain coverage substantiallyequivalent to the Mortgage hisurance previously
<br />in effect, at a cost substantially equivalent to the cost to Borrower ofthe Mortgage Insurance previously in effect, from an
<br />alternate mortgage insurer selected by Leader. ICSUbslantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to pay to Leader the amount ofthe separately designated payments that were due when the insurance
<br />coverage ceased to be in effect, lender will accept, use and retain these paymcnle as a non- mCandable lass reserve in belief
<br />Mortgage Insurance. Such loss resetve shall be non- refundable, notwithstanding the fact that the Loan is ultimately paid in
<br />hill, and Lender shall not be required to pay Borrower any interest or earnings on such loss rescrvc. Lcndcr can no longer
<br />require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by finder again becomes available, is obtained, and Lcndcr requires scparatcly dcsignatel
<br />payments towtedthe prenrimns for Mortgage Insurance H Lenderrequired Mortgage lnsuranceasacondinonofmaldngthe
<br />Loan and Borrower was required to make scparatcly designated payments toward the premiums for Mortgage Insurance,
<br />Borrower strait pay the premiums required to maintain Mortgage Insurance in effect, or m provide a non- reftlndable loss
<br />der's
<br />reserve, until Len requirement for Mortgage Insurmtce ends in accordance with any written agreement 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 iatereSl at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Burrower is not a party to the Mortgage Insurance.
<br />NPHRAsKn Faoni, Mae /Freddie lilac UNIFORM INSTRUMENT Form3038 I /01 fpage4g8,agoo
<br />9954 CV (I 0c) 131158,
<br />oo ro(000323dr
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