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<br />200600635
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<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire,
<br />for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. Borrower shall also insure all improvements on the Property, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried
<br />with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall
<br />include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in Paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in Paragraph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes
<br />the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the
<br />purchaser.
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<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the
<br />Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the
<br />date of occupancy, unless the Lender determines that requirement will cause undue hardship for Borrower, or unless
<br />extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any
<br />extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property
<br />or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the
<br />Property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve
<br />such vacant or abandoned Property. Borrower shall also be in default if Borrower, during the loan application
<br />process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any
<br />material information) in connection with the loan evidenced by the Note, including, but not limited to,
<br />representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument
<br />is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
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<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are
<br />hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid
<br />under the Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness
<br />under the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in
<br />Paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or
<br />postpone the due date of the monthly payments, which are referred to in Paragraph 2, or change the amount of such
<br />payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security II1<;trument shall be paid to the entity legally entitled thereto.
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<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay
<br />these obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect
<br />Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts
<br />evidencing these payments.
<br />LOAN NO: 590881405
<br />GMACM - FMS.0281 .NE (0201)
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