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200212009
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to
<br />provide Lender with material information) in connection with the Loan. Material representations include, but
<br />are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a
<br />legal proceeding that might significantly affect Lender's interest in the Property and /or rights under this
<br />Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
<br />enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations),
<br />or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or
<br />appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including
<br />protecting and /or assessing the value of the Property, and securing and /or repairing the Property. Lender's
<br />actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this
<br />Security Instrument; (b) appearing in court; and Ic) paying reasonable attorneys' fees to protect its interest in
<br />the Property and /or . rights under this Security Instrument, including its secured position in a bankruptcy
<br />proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs,
<br />change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code
<br />violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under
<br />this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed
<br />that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured
<br />by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement
<br />and shall be payable, 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 of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees
<br />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
<br />Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insurance and Borrower was required to make separately designated payments
<br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage
<br />substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the
<br />cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected
<br />by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to
<br />pay to Lender the amount of the separately designated payments that were due when the insurance coverage
<br />ceased to be in effect. Lender will accept, use and retain these payments as a non - refundable loss reserve in
<br />lieu of Mortgage Insurance. Such loss reserve shall be non - refundable, notwithstanding the fact that the Loan
<br />is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss
<br />reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount
<br />and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is
<br />obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance.
<br />If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the
<br />premiums required to maintain Mortgage Insurance in effect, or to provide a non - refundable loss reserve, until
<br />Lender's requirement for Mortgage Insurance 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
<br />in this 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 Note) for certain losses it may
<br />incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter
<br />into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on
<br />terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these
<br />agreements. These agreements may require the mortgage insurer to make payments using any source of funds
<br />that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance
<br />premiums). -
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any
<br />other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive
<br />from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for
<br />sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an
<br />affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the
<br />insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe
<br />for Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />(b) Any such agreements will not effect the rights Borrower has- if any- with respect to the Mortgage
<br />Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right
<br />to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the
<br />Mortgage Insurance terminated automatically, end /or to receive a refund of any Mortgage Insurance premiums
<br />that were unearned at the time of such cancellation or termination.
<br />Form 30288 11
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