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<br />200601850
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<br />DOC 10 t: 00012506320602006
<br />5. Propel.ty Insurance. Borrowcr shall kcep the improvemenls now exisling or hereafter erected on lhe
<br />ProperlY insured against loss by fire, hazards included wilhin thc term "extended coverage," and any other
<br />hazards including, but nol 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 thal Lender
<br />requires. Whal Lender requires pursuanllo the preceding senlences can change during the lerm 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, eilher: (a) a one-lime charge for flood zone delermination, certification
<br />and tracking services; or (b) a (me-time charge for flood zone delermination and certificalion services and
<br />subsequenl charges each time remappings or similar changes occur which reasonably mighl affect such
<br />deleClninalion or certification. Borrower shall also be responsible for the paymenl of any fees imposed by lhe
<br />Federal Emergency Managemenl Agency in conneclion wilh the review of any flood wne delermination
<br />resulting from an o~jection by Borrower.
<br />If Borrower fails to mainlain any of the coverages described above, Lender may obtain iusurance
<br />coverage, al Lender's option :md Borrower's expense. Lender is under no obligation to purchase any particular
<br />type or amount of coverage. Therefore, such coverage shall cover Lender, bUI mighl or mighl nol protecI
<br />Borrower, Borrower's elJuity in the Properly, or the contents of the Property, against any risk, hazard or
<br />liability and might provide greater or lesser coverage lhan was previously in effect. Borrower acknowledges
<br />that the COSI of the insurnnce coverage so obtained might significantly ex.ceed the cost or immrance thnt
<br />Borrower could have obtained. Any amounts disbursed by Lender under this Seclion 5 shall hecome additional
<br />debl of Borrower secured by this Security Inslrument. These amounts shall bear interesllltthe Nole rate from
<br />lhe date of disbursement and shall be payable, with such inl.eresl, upon notice from Lender 10 Borrower
<br />requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subjectlo Lender's right
<br />to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as morlgagee
<br />and/or as an additional loss payee. Lender shall have the righllo hold the policies and renewal cerlificates. If
<br />Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If
<br />Borrower obtains any fonn of insurance coverage, not otherwise required by Lender, for damage to, or
<br />destruction of, the Property, such policy shall include a standard mortgage clause and shall nallle Lender as
<br />mortgagee and/or as :m additional loss payee.
<br />In the evenl of loss, Borrower shall give prompt nOlice l() the insurance carrier and Lender. Lender may
<br />make proof of loss if not made promplly by Borrower. Unless Lender and Borrower otherwise agree in
<br />wriling, any insumnce proceeds, whether or not the underlying insurance was required by Lender, shall he
<br />applied to resloration 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 resloration period, Lender shall have the righlto hold
<br />such insurance proceeds until Lender has had an opport.unity 10 inspect such ProperlY to ensure the work has
<br />been completed to Lender's satisfaclion, provided that such inspection shall be underlaken promptly. Lender
<br />may disburse proceeds for Ihe repairs and resloralion in a single paymenl or in a series of progress payments
<br />as the work is completed. Unless an agreemenl is made in writing or Applicable Law requires interest to be
<br />paid on such insurance proceeds, Lender shall not be required to pay Borrower any inleresl or earnings on
<br />such proceeds. Fees for public adjuslers, or other third parties, relained by Borrower shall nolo be paid oul of
<br />lhe insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not
<br />economically feasible or Lender's securily would be lessened, the insurance proceeds shall be applied 10 the
<br />sums secured by this Security Instrlllnent, whether or not then dlle, with the excess, if any, paid to Borrower.
<br />Such insurance proceedfl shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and seUle any available insurance claim
<br />and related matters. If Borrower docs not respond within 30 days to a notice fwm Lender lhal the insumnee
<br />carrier has offered lo seule a claim, then Lender may negotiate and fleule I.he claim. The 3D-day period will
<br />begin when the notice is given. In either event, or if Lender acquires the ProperlY under Seclion 22 or
<br />Olherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount
<br />not to exceed the amounts unpaid under Ihe Note or this Security Instrumenl, and (h) any other of Borrower's
<br />righlfl (other lhan the right to any refund of unearned premiums paid by Borrower) under all influrance policies
<br />covering the Properly, insofar as such rights are applicahle to the coverage of the Property. Lender may use
<br />the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this
<br />Security Instrumenl, whether or not thell due.
<br />6. Occupnncy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within 60 days after the execution of this Security Insll1lment and shall continue to occupy the Property as
<br />Borrower's principal rc..,idence for at least one year after the date of occupancy, unless Lender otherwise
<br />agrees in wliling, which consent shallnOl be unreasonably withheld, or unless eXlenuating circumstances exist
<br />which arc beyond Borrower's conlrol.
<br />7. I'rcservutioo, Maintenunce nod I'l"ol.cction of the Property; Inflpectiollfl. Borrower shall not
<br />destroy, damage or impair the Properly, allow the Pmperty to deteriorale or commit waste on the Property.
<br />Whether or not Borrower is residing in the Property, Borrower flhallmaintain the Property in order to prevenl
<br />lhe Properly from deleriornting or decrellfling in value due to ils condition. Unless it is delermined pursuant to
<br />Section 5 that repair or restoration is not economically feasihle, Borrower shall promplly repair the Property if
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<br /><It -6A(NE) (0407)
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<br />CHL (08/05)
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<br />Page 5 or 11
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<br />Form 3028 1/01
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