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200207833
<br />coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a
<br />standard mortgage clause and shall name Under as mortgage: and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender maymake proof
<br />of loss if not made promptly by Borrower. Unless Icndcr and Borrower otherwise agree in writing, any insurance proceeds,
<br />whcthcr err nut lire underlying insurance was required by lender, shall be app] led to restoration or repair of the Property, if
<br />the restoration or repair is economically feasible and Iender's security is not lessened. During such repair and resinsaton
<br />period, Icndcr 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 in Lender's satisfaction, provided that such inspu aiou shall be undertaken
<br />promptly. Under may disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />payments as the work is completed. Unless an agreement is made in writing or Applicable luw mquires interest h1 be paid
<br />on such insurance proceeds, Under shall not be requited to pay Burrower any interest or earnings on such proceeds. Pees
<br />for public adlusters, 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 />lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whcthcr or not then due,
<br />with the excess, if any, paid to Burrower. Such insurance pecceeds shall be applied in the order provided form Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower dues nut respond within 30 days to a notice 77, in Lender that the insurance carrier has offered to scale
<br />claim, then Lender may negotiate and settle the claim. The 30 -day period will begin when the notice is given. In either
<br />event, or if T ender acquires the Property under 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 Nom or this Security Instrument,
<br />and (b) any other of Borrower's rights (other than die right to any refund of unearned premiums paid by Borrower) under all
<br />insurance policies 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 res tore, the Property or to pay amounts unpaid under the Now 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 Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence 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, Maintenance and Protection of the Property; 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 Borrower is residing in the Property, Borrower shall maintain the Property in order to
<br />prevent 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 ecnomically feasible, Borrower shall promptly repair the Property ifdamaged to
<br />avoid fhriher deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage Juror ale
<br />taking of, the Property, Borrower shall be responsible far repairing or restoring 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 />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 of the Property. If it has reasonable cause,
<br />Icndcr may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or
<br />prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Ivan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material
<br />informat ion) in connection with the Loan Material representations include, but we not liiri to,representationsconcerning
<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 Instrument, (b) there is a legal
<br />pr(: cdting that might signiticantly affect Lender's interest in the Property and/or rights under this See any Insvwnent(such
<br />as a proceeding in bankruptcy, probate, forco tdemnation or forfeiture, for enforcement of lien which may attain priority
<br />over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropriate to protect Lenders interest in the Property and rights under this
<br />Security Instrument, including protecting and/or assessing the %slue of the Property, and securing and/or repairing the
<br />Property. Lender's actions can include, but are not tin ited to: (a) paying any sums secured by a lien which has priority over
<br />this Security Instrument; (b) appearing in eourn and (c) paying reasonable attorneys' fees to protect its interest in the
<br />Property and/or right s under this Security fi snument, including its secured position in a bankrupcy proceeding Securing
<br />the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or hoard up doors
<br />and windows, drain water from pipes, chmirate budding or other code violations or dangerous conditions, and have on lines
<br />turned ern err oB. Although Lender may take action order this Section 9, render does not have to du sec and is nut under any
<br />duty or obligation to do so. It is turned that Under incurs no liability for not taking any or all actions authorized under this
<br />Section 9.
<br />Any amounts disbursed by Tcuder under this Section 9 shall become additional debt of Borrower secured bythis
<br />Security Instrument These amounts shall bear interest at the Note rate from the date of disbursement and shall he payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions oflhc lease. IfBumower
<br />acquires fee title to the Property, the leasehold and the fee tide shall not merge unless Lender agrees to the merger in writing
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
<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 Lcndcr cruses to be available from the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the prenuums for Mortgage Ina rance,
<br />Borrower shall pay the premiums required m obtain coverage substantially equivalent to the Mortgage Insurance previously
<br />in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an
<br />alternate mortgage insurer selected by Under. If substantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to pay to Lender the amount ofthe separately designated payments thatwere due when the inswarce
<br />coverage ceased to be in effect. Tender will accept, use and retain these payments as anon-refundable loss reserve iii
<br />Mortgage Insurance. Such loss reserve shall be non refundable, notwithstanding the fact that the nn is ultimately paid in
<br />full, and Lender shall not be required to pay, Borrower any interest or earnings on such loss reserve Lender can no longer
<br />require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that la:nder requires)
<br />provided by an insurer selected by Lender again becomes availuble, is obtained, and Lender requires separately designated
<br />paymcr as toward the premiums for Mortgage Insurance. It Lender required Mortgage insurance as a emdmnn ofmukhng the
<br />Loan and Bonnwer was required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required ro maintain Mortgage Insurance in effect, or mo provide a non - refundable doss
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between
<br />Borrower and Lender In oviding 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 Lender (or any entity that purchases the Nom) for certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Bunower 1s not a party to the Mortgage Insurance.
<br />NEE1tAS%A-- Single Yaolity— Fwmie Ntei Freddie Mart;NIFOR IINS'IRUMENrI F.r.13028 1 /01 (Pe,ye4 laPagesl
<br />9154.CVUN21 ,561106
<br />rill 'I Oroozsee1
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