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200214063
<br />coverage, not otherwise required by Leader. for damage to, or destruction of, the Property, such policy shall include a
<br />standard mortgage clause and shall name icndcr as mortgagee and/or as an additional loss payee.
<br />In the event of Inns, Burrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of Ins, if not made promptly by Borrower- Iinless Lender and Bomiwer otherwise agree in writing, any insurance proceeds.
<br />whether or not the underlying insurance was required by Lender, shall he applied to restoration or repair of 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 />Property to ensure the work has been complctud to Lender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in it series of progress
<br />payments as the work is completed. Unless an ageement is made in writing or Applicable law requires interest to be paid
<br />on such Laurance 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 />lessened, die insurance proceeds shall be applied to the sums secured by this Security Instrument, wherheror 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 />ILBor'ower abandons the Property, f ender may file, negotiate and settle any available insurance claim and related
<br />mattes. It Borrower tines not respond within 30 days to a notice from Lender that the insurance carrier has offered to scale a
<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 lender 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 Note or this Security Instrument,
<br />and (b) any other ofBorrower's rights (other than the right to any round 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 restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Burrower shall occupy. establish, and use the Property as Borrower's of residence within
<br />60 days after the execution of this Security Instrument and shell 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, ur unless
<br />extenuating circumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shat l 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. But shall maintain the Property in order to
<br />prcvwt the Property from deteriorating or decreasing in value due to its condition. I)nless it is determined pursuant to
<br />Section 5 that repair or restoration is not economically feasible Borrower shall promptly repair the Property it damaged to
<br />avoid further deterioration or damage- If insurance or condemnation proceeds are paid iu connection with damage to, or the
<br />taking of, the Property, Borrower shall be responsible for repairing of restoring die Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse to for the repairs and restoration m a single payment or in a series
<br />of progress payments as the work is completed, If the insurance or condemnation proceeds are not cuff dent to repair or
<br />restore the Property, Borrower is not relieved of Borrower's obligation for the crmpletion of such repair or restoration.
<br />Lenderor its agent maymake reasonableentries upon and inspectionso fthe Property. ifit has reasomblecause,
<br />Icnder 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 />S. Borrower's Loan Application. Burrower shall be in default if, during the Luse application process,
<br />Borrower or any persons or entities acting at the direction of Borrower ur with Borrower's knowledge or consent gave
<br />materially false 'e' misleading, or inaccurate information or statements to Lender (or failed to provide da=nder with material
<br />information) in connection with the Dian. Material representations include, but are nothmited to, representations concerning
<br />Borrower's occupancy of the Property as Borrower's pri ncipal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. It
<br />(a) Borrower fails to Perform the covenants and ao cements contained in this Security Instrument, (b) there is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority
<br />over this Security Instrument of to enforce laws or regulatioru), or (c) Borrower has abandoned theProperry, then Lender
<br />may de and pay Cur whatever is reasonable or appropriate to protect Leader's interest in the Property 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 deficits can include, butarenot limited m: (a) paying any sums secured by a Tien which has priority over
<br />this Security Insuurl (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the
<br />Property and/or rights under this Security Instrument, including its secured position in it bankruptcy procwding. Securing
<br />the Property includes, but is not limited to, entenng the Property to make repairs, change locks, replace or board up doors
<br />and windows, drain water from pipes, eliminate budding or other code violations or dangerous conditions, and have utilities
<br />turned un or off. 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 se. 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 />Security Instrument These amounts shall bear interest at the Note rate from the date of disbarsement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is or a leasehold, Borrower shall comply with all the provisions ofthe lease. It Borrower
<br />acquires tee title w the Property, the leasehold and the fee title shall not merge unless Lender agrees to the mcrver 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 It, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separatelydesu ated payments toward thepremtums for Mortgagclnsumnce,
<br />Borrower shall pay the premiums required to ohnno 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 Lender. If substantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to pay to Lender the amount of separately designated payments that were due when the insurance
<br />coverage ceased to be in effect Lender wil l accept use and retain these payments as a non - refundable loss reset vein lieu of
<br />Mortgage Insurance. Such loss reserve shall be non - refundable ,notwith,tandingthefact that the lean is ultimately paid in
<br />bill, and Lender shall not be required to pay Borrower any interest or earnings on such Toss reserve. Lender can no longer
<br />require loss reserve payments it Mortgage Insurance coverage (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Motgagelnsarance It lender required Moitgagefnsranceasawnditionofmakmg me
<br />Leila ad Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance
<br />Borrower shall pay the premiums required to maintain Mortgage [ nsurance in effect, or to provide a non-refundable loss
<br />restive, until leader'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 in this
<br />Section 10 affects Borrower's oblipgation to pay interest at the rate provided in the Notc.
<br />Mortgage Insurance renflTmases Lender (or any entity that purchases the Note) for certain losses it may incur if
<br />Burrower does not repay the Loan as agreed. Borower is not a party to the Mortgage Insurance.
<br />NF.RRASkA- Single Family- FaanleMae/Freddie Mae UNIFORM Itch I RFMENT Forni 1 /01 rpaprr.J8111X, 11
<br />945Y ry I1112) 1024857
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