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200206453 coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event ofloss, Borrower shall give prompt notice to the inswance car, er and Leader. Lender may make proof of loss fruit made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, anyinsuranceproceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair ofthe Property, if the restoration or repair is economically feasible and I coder's security is not lessened. During such repair and restoration period, Lender shut the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been earn ced to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unlessan agreement is made in writing or Applicable l ace requires interest to he paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out ofthe insurance proceeds and shall be the sole obligation of Borrower. If the reshnation or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, ifany, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the inswance carrier has offered w settle a claim, then Lender may negotiate and settle the claim. the }D-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage ofthe Property. Lender may use the insurance proceeds tither to repair or reslure the Properly or to pay amounts unpaid under the Note or this Security Instrument, whether m not then due. 6. Occupancy. Bromwershall occupy, establish, and use the Property as Borrower's principal residence within 60 days alter the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably witltlield, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection ofthe Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid Former deterioration or damage. Ifinsurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Burrower shall be responsible for repairing of restoring the Property only if Lender has released proceeds forsuchpurposes. Lender may disburse proceeds for the repairs and restoration in asingle payment or in a series o( progress payments as the work is completed. Ifthe insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lendcr or its agent may make reasonable enn'ies upon and inspections ofthe Property. If it has reasonable cause, Lender may inspect the intenar of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information)m connection with the Loan. Material representations include, but are not limited to, represenhdions concerning Borrower's occupancy ofthe Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or nights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement ofa lien which mayattain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriateto protect Lender's interest in the Propertyand rights under this Security Instrument, including protecting and/or assessing the value of the Property, and secmnng and /or repairing the Property. Lender's actions can include, but ate not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or Ti FIT is under this Sec only Instrument, me luding rls sec urea position in a bankrup icy proceeding. Severing the Property includes, but is not limited to, entering the Property to make repairs, change locks, rep lace or board up doors and windows, drain water from pipes, eliminate tin ding or other code violations or dangerous conditions, and have utilifics turned on or oft Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any mnowrts disbursed by Lender under this Section 9 shall become additional debt ofBarrower secured by this Security Instrument. 'These amounts shall bear interest at the Note rate from the date ofdisbursement and shall be payable, with such interest, upon notice from Lender to Bon'ower requesting payment. Ifthis Security Instrument is on a leasehold, Borrower shall comply with all the provisions ofthe lease. IfBOrrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the mcrgerin writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition at making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that In provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower ofthe Mortgage Insurance previously in effect, from an alternate mortgage iitset er selected by Lender. Ifsubstantiallyequivalent Mortgage Insurance coverage is not available, cover age ceased to be to erect Lender will accept, use and retain these payments as a non - refundable loss reserve in lieu of Mortgage Insurance..Stich lass reserve shall be two-re fin dable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires sepm'alely designated payments toward the premiums for Mortgage Insurance. IfLender required Mortgage Insurance as a condition ofmaking the Leon it Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non - refimdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may mart if Borrower does not repay the Loan as agreed. Borrower is not a pasty to the Mortgage Insurance. N'CRRASRA- -Sir,e Family— FamlleMae/Frednle Mac UN I FORM INSTRUMEN I Form3O28 1 /01 oc,ee4ofdpages) 9b9 llv(112) (.0 .1,, GOTO(OW2374e)