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<br />200600801
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<br />DOC ID #: 00012524951401006
<br />damaged to avoid further deterioration or damage. If insurance or condemnation procecds are paid in
<br />connection with damage to, or the taking of, the Propcrty, Borrower shall be responsible for repairing or
<br />restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds
<br />for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property,
<br />Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender or its agent may make reasonable 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 />Borrower notice at the lime of or prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower"s Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entitics acting at the direction of Borrower 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 material information) in connection with the Loan. Material rcpresentations include, but
<br />are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Intel~est in the Propert.y and Rights Onder this SeclIl"ity Instrument. If (0)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrumerll, (b) there is a
<br />legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this
<br />Security Instrument (such as a proceeding in bankruptcy, prohate, 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 (e) Borrower has abandoned the Property, then Lender may do and pay for whatever is
<br />reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument,
<br />including protecting and/or assessing the value of the Property, and securing and/or repairing the Property.
<br />Lender's actions can include, hut are not limited to: (0) paying any sums secured by a lien which has priOIity
<br />over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its
<br />interest in the Property and/or rights under this Security Instrument, including its secured position in a
<br />bankmptcy proceeding. Securing the Property includes, bul is not limited to, entering the Property to make
<br />repairs, change locks, replace or board up doors amI windows, drain water from pipes, eliminate building or
<br />other code violations or dangerous conditions, and have utilities tumed on or off. Although Lender may take
<br />aetion under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It
<br />is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured
<br />by this Security Instrument. These amounts shall bear interesl at the Note rate from the date of disbursement
<br />and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Seclllity Instnunent is on a leasehold, Borrower shall comply with all the provisions of the lease.
<br />If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender
<br />agrees to the merger in writing.
<br />10. Mortgage Insurance. 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 Insurance coverage required by Lender ceases to be available from the Illortgage insurer that
<br />previously provided such insurance and Borrower was required to make separately designated payments
<br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage
<br />substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the
<br />cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer seleeted
<br />by Lender. If substantially equivalent Mortgage Insurance coverage is nol available, Borrower shall continue
<br />to pay to Lender the amount of the separately designated payments that were due when the insurance coverage
<br />ceased to be in effect. Lender will accept, use ami retain these payments as a non-refullllable loss reserve in
<br />lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan
<br />is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or eamings on such
<br />loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the
<br />amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes
<br />available, is obtained, and Lender requires sepm'ately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower
<br />shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss
<br />reserve, until Lender's requiremcnt for Mortgage Insurance ends in accordance with any written agreement
<br />between Borrower and Lender providing for sllch termination or until termination is required by Applicable
<br />Law. Nothing in this Section 10 affects Borrower's obligalion to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower does not repay the Loan as agreed. Borrower is not a party to Ihe Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all sllch insurance in force from time to time, and Illay enter
<br />into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on
<br />terms and conditions thal are satisfactory to the mortgage insurer and the other party (or parties) to these
<br />agreements. These agreements may require the mortgage insurer to make payments using any source of funds
<br />that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance
<br />premiums).
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<br />~ -6A(NE) (0407)
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<br />CHL (08/05)
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<br />Form 3028 1/01
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