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� 200504685 �
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
<br />loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance.
<br />This insurance shall be maintained in the amounts and for the periods that Lender requires, The insurance carrier providing the insurance shall be chosen
<br />by Borrower subject to Lender's approval which shall not be unreasonably withheld, If Borrower fails to maintain coverage described above, Lender may,
<br />at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insuranre policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lander shall have the right to hold
<br />the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of
<br />loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if
<br />the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's
<br />security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any
<br />excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier. has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore .the Property or to pay sums
<br />secured by this Security Instrument, whether or not than due. The 30 -day period will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the
<br />monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is acquired by Lander,
<br />Borrower's right to any insurance policies and proceeds resulting from.damage to the Property prior to the acquisition shall pass to Lander to the extent of
<br />the sums secured by this Security Instrument immediately prior to the acquisition.
<br />6. Preservation, Maintenance and Protection of the Property; Borrower's loan Application; Leaseholds, Borrower shall not destroy,
<br />damage or impair the Property, allow the. Property to deteriorate, or -commit waste on the Property, Borrower shall be in default if any forfeiture action or
<br />proceeding, whether civil or criminal, is begun that,in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair
<br />the lien created by this Security Instrument or Lender's secrlrity interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by
<br />causing the action or proceeding to he dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in
<br />the. Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br />Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender for failed to provide Lender with any
<br />material information) in connection with the loan evidenced by the Note. If this Security Instrument is on a leasehold, Borrower shall comply with all the
<br />provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in
<br />writing.
<br />7. Protection of Lander's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security
<br />Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for
<br />condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property
<br />and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument,
<br />appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph
<br />7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by. this Security Instrument. Unless
<br />Borrower and Lender agree to. other terms of payment, these amounts shall bear interest from the date of disbursement at the' Note rate and shall be
<br />payable, with interest, upon notice from Lander to Borrower requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower
<br />shall pay the premiums required to maintain the mortgage .insuranca in effect. If, for any reason, the mortgage insurance coverage required by Lender
<br />lapses or ceases to be in effect, Borrower shall pay the premiums required to 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 alternate mortgage insurer
<br />approved by Lender: If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lander each month .a sum equal to
<br />one- twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will
<br />accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of
<br />Lander, if mortgage insurance coverage (in the amount and for the period that Lander requires) provided by an insurer approved by Lander again becomes
<br />available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the
<br />requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lander or applicable law.
<br />By initialing, I acknowledge this is page 3 of 6
<br />of the Deed of Trust. W Initials Initials Initials— Initials T
<br />U Copyright Compliance Systems, Inc. 1893, 1884, 1895, 1887, 1989 Compliance Systems, Inc.
<br />ITEM 121 NED 19902A) Pete 3 of 6 To Order: Call 800 968 8522 Fax 616.958 -1868
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