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<br />200600585
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<br />required by Lender, for damage to, or destruetion of, the Property, such policy shall include a standard
<br />mortgage clause and shall namc Lender as mortgagee and/or as an additional loss payce.
<br />In the cvent of loss, Borrower shall give prompt notice to the insurancc carrier and Lender. Lender
<br />may make proof of loss if not made promplly by Borrower. Unless Lender and Borrower otherwise
<br />agree in writing, any insurance proceeds, whether or not the underlying insurance was required by
<br />Lender, shall be applied to restoration or repair of the Property, if the rcstoration or repair is
<br />economically feasible and Lender's security is not lessened. During such repair and restoration period,
<br />Lcnder shall havc the right to hold such insurance proceeds until Lcnder has had an opportunity to
<br />inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such
<br />inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and rcstoration in
<br />a single payment or in a series of progress payments as the work is completed. Unless an agreement is
<br />made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall
<br />not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or
<br />other third parties, retaincd by Borrower shall not bc paid out of thc insurance procccds and shall be the
<br />sole obligation of Borrower. If thc restoration or repair is not cconomically feasible or Lender's security
<br />would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with the exccss, if any, paid to Borrower. Such insurance proceeds
<br />shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
<br />claim and related matters. If Borrower does not rcspond within 30 days to a notice from Lendcr that the
<br />insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The
<br />30-day period will begin when the notice is given. In either event, or if Lender acquires the Propcrty
<br />under Section 20 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />proceeds in an amount not to excccd the amounts unpaid undcr the Note or this Security Instrument, and
<br />(b) any other of Borrower's rights (other than thc right to any refund of unearncd premiums paid by
<br />Borrowcr) under all insurance policies covcring the Property, insofar as such rights are applicable to the
<br />coverage of the Property. Lendcr may use the insurance proceeds either to repair or restore the Property
<br />or to pay amounts unpaid under the Note or this Security Instrument, whether or not thcn due.
<br />5. Occupancy. Borrower shall occupy, establish, and use the Propcrty as Borrower's principal
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residcnce for at least one year after the date of occupancy, unlcss
<br />Lendcr otherwise agrces in writing, which consent shall not bc unreasonably withheld, or unless
<br />extenuating circumstances exist which are beyond Borrower's control.
<br />6. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br />not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
<br />Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
<br />order to prcvent the Propcrty from deteriorating or decrcasing in value due to its condition. Unless it is
<br />determined pursuant to Section 4 that rcpair or restoration is not economically feasible, Borrower shall
<br />promptly repair the Property if damaged to avoid furthcr deterioration or damage. If insurance or
<br />condemnation proceeds are paid in conncction with damage to, or the taking of, the Property, Borrowcr
<br />shall be responsible for rcpairing or restoring the Property only if Lender has released proceeds for such
<br />purposes. Lcnder may disburse proceeds for the repairs and rcstoration in a singlc payment or in a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not
<br />sufficient to repair or restore thc Property, Borrower is not relieved of Borrower's obligation for the
<br />complction of such repair or restoration.
<br />Lender or its agent may make reasonablc entries upon and inspections of the Property. If it has
<br />reasonable cause, Lender may inspect thc interior of thc improvements on the Property. Lender shall
<br />give Borrower notice at the time of or prior to such an interior inspection specifying such reasonablc
<br />cause.
<br />7. Borrower's Loan Application. Borrower shall be in default if, during the Loan application
<br />process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
<br />knowledge or conscnt gave materially false, misleading, or inaccurate information or statements to
<br />Lender (or failcd to provide Lcnder with matcrial information) in connection with the Loan. Material
<br />representations include, but are not limited to, representations conccrning Borrower's occupancy of thc
<br />Property as Borrower's principal residence.
<br />8. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Sccurity
<br />Instrumcnt, (b) there is a lcgal proceeding that might significantly affect Lcnder's interest in thc Property
<br />and/or rights under this Security Instrument (such as a procceding in bankruptcy, probate, for
<br />condemnation or forfeiture, for entorcement of a lien which may attain priority over this Security
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