|
<br />20810'4tl
<br />
<br />DOC ID #: 00012396471312005
<br />5. 'Property !lllsm"anc'c. Borrm'ier shall keep the improvements now existing or hereafter erected on the
<br />Property insured again:,t loss by fire, hazards inc:\uded within the term "extended coverage," and any other
<br />hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This
<br />insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender
<br />requires. What Lender requires pursuant to the preceding sentences can change during the tenn of the Loan.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to
<br />disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower
<br />to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification
<br />and tracking services: or (b) a one-time charge for flood zone detenninatioll and certification services and
<br />subsequent charge:, each time remappings or similar changes occur which reasonably might affect such
<br />determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the
<br />Federal Emergency Management Agency in conne(:tion with the review of any flood zone determination
<br />resultin~, from an (>bjection by Borrower.
<br />:if BOlTower fails to rnaintain any of the covera!!;,"" described above, Lender may obtain insurance
<br />coverage, at Lendcrr's option and Borrower'~: expense. Lender is under no obligation to purchase any particular
<br />type or amount of ooverage. Therefore, such coverage shall cover Lender, but might or might not protect
<br />Borrowt:r, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or
<br />liability and might provide greatllr or lesser coverage than was previously in effect. Borrower acknowledges
<br />that the cm:t of the insurance coverage so obtained might significantly exceed the cost of insurance that
<br />BOlTower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional
<br />debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from
<br />thtj date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower
<br />reque:,ting payment.
<br />All insurance policies required by -Lender ,md renewals of such policies shaIl be subject to Lender's right
<br />to disa:O'iJrove :iIlch policies, shall indude a standard mortgage clause; and shall name Lender as mortgagee
<br />and/or as an additional loss pay,~e. L,efl('er 5,hal! havll the right to hold the policies and renewal certificates. If
<br />Lender require:" Borrower 511all promptly giYl: to Lender all receipts of paid premiums and renewal notices. If
<br />Borrowew obtains any form of il1iRlrance coverage, not otherwise required by Lender, for damage to, or
<br />destruction of, the Property, such policy shall inelude: a standard mortgage clause and shal! name Lender as
<br />mortgagee and/or ,IS an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
<br />make proof of IOils if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in
<br />writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be
<br />applied to r(~storation or repair of the Property, if the restoration or repair is economically feasible and
<br />Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold
<br />such insurance proceeds until Lend~r has had an oPPOltunity to inspect such Property to ensure the work has
<br />been completed tu Lender's :;utisfadion, provided tbat sllch inspection shall be ,undertaken promptly. Lender
<br />may disburse proceeds for the nlrmjl~, and re:,tcration in a single payment Qr in a series of progress payments
<br />as th( viork is completed. {}nletIS a:o, agn~erncnt is made in writing or Applicable Law requires interest to be
<br />paid on :mch insunmce proceeds, Lend'~r shall not be required to pay Borrower any interest or earnings on
<br />such prc,,;cec!3. Fees for public adjusters, or other third parties, retained by BOlTower shall not be paid out of
<br />the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not
<br />economkally feasible or Lender':) secmity would be lessened, the insurance proceeds shall be applied to the
<br />slims secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such im:llrJnee proceed:, shall be applied in the order provided for in Section 2.
<br />:f Borrower ab2.~ldons the PrOpfTty, Lender may file, negotiate and settle any available insurance claim
<br />and rdated matter,. If Borrower does not respond within 30 days to a notice from Lender that the insurance
<br />carrier has offered to !lCttle a claim, then Lender may negotiate and settle rhe claim. The 30-day period will
<br />begin when the r:crice .is given, In either event, or if Lender acquires the Property under Section 22 or
<br />otherwise, Borrower hereby assign!: to:"'erider (a) Borrower's rights to any insurance proceeds in an amount
<br />not to exceed the amounts unpaid '.lnd'~r the NClttl or th:is Security lnstrument, and (b) any other of Borrower's
<br />rights (other th,m the right to any rtJund of lllNarned premiullIs paid by Borrower) under all insurance policies
<br />covering the Pmpeliy, insohr as such rights are applicable to the coverage of the Property. Lender may use
<br />the insurance pr()(~f;eds either to repair or restore the Property or to pay amounts unpaid under the Note or this
<br />Sec.urity Instrumen';, whether or not then dut~.
<br />6. OcnuplUllcy. Borrower shall OCI~UPy, estgblish, and use the Property as Borrower's principal residence
<br />within 6() (lays after the eXf;(~lItion of thi:: Security Instrument ami shall continue to occupy the Property as
<br />BOlTOWt::'s princip:ll residen:e tor at least oni" year after the date of occupancy, unless Lender otherwise
<br />agrees in w:iting, whidl const:nt ~;hall not be ~mreasonably withheld, or unless extenuating circumstances exist
<br />which ar~ beyond Borrower':; control.
<br />7. Prcs~rvll.ltiun, MainltelHml,~e and 11rotectioll of the PnJoiPcrty;; Inspections. Borrower shall not
<br />destroy, damage: or ilnpair tlie PrlJpelty, allow the Property to deteriorate or commit waste on the Property.
<br />Whether or not Omrowe:r is rG;,;idir.g in lhe ?roperty, Borrower ~:hall maintain the Property in order to prevent
<br />the Prop,::rty fn:m d:~terioratjng ,)I' c!f-creasing in value dL,I~' to its cOlidition. Unless it is determined pursuant to
<br />SectiClf: 5 that repair" or fe,;:tu:ation i!; not e~:onomically fe:lsible,Borrower shall promptly repair the Property if
<br />
<br />Gl.6A(NE) (040')
<br />
<br />CHI. 108//)5)
<br />
<br />Page 5 (J\' 11
<br />
<br />Form 3028 1/01
<br />
|