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<br />200600441
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<br />DOC ID #: 00012396471312005
<br />damaged to avoid further deterioration or damage. If, insurance or condemnation proceeds are paid in
<br />conneGtiOl1 with damage to, or ~he taking of, the Property, Bon-ower shall be responsible for repairing or
<br />restoring the Propmiy only if Lender has n~leased proceeds for such purposes. Lender may disbw'se proceeds
<br />for the repairs and restoration in a singl,e payment or in a series of progress payments as the work is
<br />completed. If the insuranct~ or condl.mmation proceeds are not sufficient to repair or restore the Property,
<br />Borrow,:r is not relieved of BOlTowe:r's obligation for the completion of such repair or restoration.
<br />Lender or its agent may make reas011able entries upon and inspections of the Property. If it has
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
<br />Borrow',:r notice at the time of or prior to such an interior inspeGtion specifying such reasonable cause.
<br />S. UOrl'ower's Loan Application. Bormwer shall be in default it: during the Loan application process,
<br />BOlTow,:r or any pt~rsons or entities al:ting at the direction of BOITower or with Borrower's knowledge or
<br />consent gave materially false, misleading, or inaccurate infonnation or statements to Lender (or failed to
<br />provide Lender with rnateri"l infbrmation) in connection with the Loan. Material representations include, but
<br />ar,e not limited to, representations concerning BOITower's occupancy of thl: Propel1y as Borrower's principal
<br />residen,:e.
<br />9, JPu'otectiOIh of Lender's Illteresl in the Pl'opell'ty and Rights Under this Security Instrument. If (a)
<br />Borrower fails to pe~rfol'm the covelants and agreelTlents contained in this Security Instrument, (b). there is a
<br />legal proceeding that might signi11cantly affect Lender's interest in the Property and/or rights under this
<br />Security Instrument (such as a procefJding: 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
<br />regulations), or (c) BorroW'~r has a.bandoned the Pwperty, then Lender may do and pay for whatever is
<br />reasonable or lppropriate to protect Lender's interest in tlJe Property and rights under this Security Instrument,
<br />including protecting and/or assessing tht: value of the Property, and securing and/or repairing the Property.
<br />Ltmdu's actions can includl1, but are not limited to: (a) paying any sums secured by a lien which has priority
<br />over this Security In~tCLlrnent; (b) appearing in Gourt; and (c) paying reasonable attorneys' fees to protect its
<br />interest in the Propel1y ani:Vor rights under this Security Instrument, including its secured position in a
<br />bankruptcy proceeding. Securing thl~ Property in dudes, but is not limited to, entering the Property to make
<br />repairs, change locks, replacl~ 01' ~Gard 'Jp doors and windows, drain water from pipes, eliminate building or
<br />other code violatiorw or dangerow; conditions, and have utilities turned on or off. Although Lender may take
<br />action ur,der 1hi,; S'oction 9, Lender doe~: not have to do so and is not under any duty or obligation to do so. It
<br />is agreed that Len,ier incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Ll:nder under this Se;:tion 9 shall become additiollal debt of Borrower secured
<br />by thi~l Security Instrument. These amounts shall bear intNcst at the Not<~ rate from the date of disbursement
<br />and shall bt~ payable), with such inter'~I;t, upon notiee 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.
<br />If BotTower acquin:s fee title to th.e Property, the leasehold and the fee title shall not merge unless Lender
<br />agree~, to the mergic'r in .writing,
<br />W. Mm'1!:gage Immnmce. 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 bsnrance 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 Mortga.ge tnsnrance, BOlTower shall pay the premiums required to obtain coverage
<br />substantially equivalent to tht: Mortgsge Insurance previously in effect, at H cost substantially equivalent to the
<br />cost to Borrowc>,]' of thl~ Mmtgage . Insurance pr\wiollsly in effect, from an alternate mortgage insurer selected
<br />by Lender, If substantially ec.uivalcnt Mortgage InsuraL1c'~ coveragu is not available, Borrower shall continue
<br />to pay to Lmld'er the amount of the wparately d',Jsi,gnated payments that wefl;J due when the insurancb coverage
<br />ceased to be in effect. Lender will accept, lIse and retain theSI: paymtmts as a non-refundable loss reserve in
<br />lieu of Mortgag:; Insurance. Such loss ms(~rve shall htJ Hon..refundable, notwithstanding the fact that the Loan
<br />isc.ltimatel:! paid in full, and Lendl~r shall not be required to pay Borrower any interest or earnings on such
<br />loss n~Sl:rve. LelHkr can 1:0 longer require less reserve payments if Mortgage Insurance coverage (in the
<br />amount and for tb: period tJlflt Lender requires) provided by an insurer selected by Lender again becomes
<br />available, is obtained, and Lender require::. separately designated payment1: toward the premiums for Mortgage
<br />InsuranCI~. If Lender required Mortgage Imiurance as a condition of making the Loan and Borrower was
<br />required to i1Iake "eparately dt::,;igna1ed payments toward the premiums for Mortgage Insurance, Borrower
<br />shall pny the pn:miums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss
<br />reserve, \Inti! Lender's n;qL,[wrn1ent foc Mort8uge Insur,xlce ends in accordance with any written agreement
<br />bctwceJ BOfro'lIer and Lender pro\'.iding for such tennination or until termination is required by Applicable
<br />Law. ),' (Jthing in th i:, Section 10 afIj;,cts BorTOWJr'S obligation to pay interest at the rate provided in the Note.
<br />;'10ftgug') fnsurance re.irnllul'ses Lt',ndcr (or any ,~ntity that purchases the Note) for certain losses it may
<br />incur i.f Bon'ower does not repily the Lm'n as agreed. BOlTower ill not a pal1.ylo the MOligage Insurance.
<br />Mortgage inSClrem evalua,e their total risk on al11luch insurance in force from time to time, and may enter
<br />into agn~ements wi1h other parties Ihat share or modify their risk, or red'Jce losses. These agreements are on
<br />terms and conditions that are satisfactory to the mortgage insurer and the other patty (or parties) to these
<br />agreements. These agn~emef'ls may require the mOltgage insurer to make payments using any source of funds
<br />that the :nortgage insurer may have available (which may include funds obtained from Mortgage Insurance
<br />pf'emiu:m:).
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<br />cIt ..6A(NE) (0407)
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<br />Ct~L (1')6/05)
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<br />Pil(Je 6 of 11
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<br />Forni 3028 1/01
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