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<br />200601850
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<br />DOC ID #: 00012506320602006
<br />damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in
<br />connection with damage to, or the taking of, the Property, 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 paymenls as lhe work is
<br />completed. If lhe insurance or condemnalion proceeds arc not surficient 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 it.'> agent may make reasonable entries upon and inspections of the Property. If it has
<br />reasonable eaWle, Lender may inspect the iillerior of the improvcmcnts on the Property. Lender shall give
<br />Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
<br />8. nornIW(~r's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to
<br />provide Lender with material information) in connection with the Loan. Malerial representations include, but
<br />are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. I'roteclion of Lcndcl"s Intcrcst in thc Property und Ri~hls Under this Security Instrumcnt If (a)
<br />Borrower fails to perform the coven/lIlts and agreements contained in this Security Instrument, (b) there iR a
<br />legal proceeding that might signiricantly affecl Lender's intereRt in the Property and/or righlfl under this
<br />Security Instrument (such as a procceding in bllnknlplcy, probate, for condemnation or forfeilure, Ihr
<br />enforcement of a lien which may lluain priority over this Security Inslnnllent or l() enforce laws or
<br />regulations), or (c) Borrower has abandoned the Properly, then Lender may do and pay for whatever iR
<br />reasonable or approprillle to protect Lender's interest in the Property and rights under this Security Instrument,
<br />including protecting and/or asscssing the value of the Property, and securing :mtVor repairing thc Property.
<br />Lender's actions can include, but are not limited lo: (a) paying any sums secured by a lien which has priority
<br />over this Sccurity Instrtnllenl; (h) appearing in court; and (c) paying reasonable attorneys' fees to protect itR
<br />illlereRt in the Property and/or rights under this Security Instrument, including its Recured position in a
<br />bankruptcy proceeding. Securing the Property includes, but iR not limited to, entering the ProperlY to make
<br />repairs, change locks, replace or board up doors and 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 />action under this Section 9, Lender does not have to do so and is notuoder any duty or obligalion to do so. It
<br />is agreed that Lender incurR no liability for not taking any or all actions authorized under this Section 9.
<br />Any amountR disburscd by Lender under this Scction 9 shall become additional debt of Borrower secured
<br />by this Security InRtrumenL These amounts shall bear interest at the Note rate from the date of diRbursement
<br />and shall be payable, with Ruch intereRt, upon notice fmlll Lender to Borrower requeRting payment.
<br />If this Security Instrument is on a leasehold, Borrower Rhall comply with all the provisions of the lease.
<br />If Borrower acquires fee title 10 the Property, the leasehold and the fce litle Rhall Jlot merge Ullless Lender
<br />agrees to the merger iJl writing.
<br />10. Morl.f;tuKc Insurancc. If Lender required Mortgage Insurance as a condition of making thc Loan,
<br />Borrower Rhall pay the premiums required to maintain the Mortgage Insurance in effecL If, for any reason. the
<br />Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insunlnce and Borrower was required to make Reparately deRignated payments
<br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required 10 oblain coverage
<br />Rubstanlially equivalent 10 Ihe Mortgage Insurance previously in effect, al a cost substllntially equivalent to (he
<br />cost to Borrower of the Morlgage Insurance previously in effect, from an alternate mortgage insurer selected
<br />by Lender. If Rubstantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue
<br />to pay l() Lender the amount of lhe separately designated paymenlS that were due when the il1Rurance coverage
<br />ceased to be in effect. Lender will accept, use and retain these payments as a non-refunduble 10Rs reserve in
<br />lieu of Mortgage Insurance. Such loss reRCrve shall be non-refundable, nOlwilhstanding the faclthatthe Loan
<br />is ultimately paid in full, and Lender shall not be required to pay Borrower allY illlereRt or earnings on such
<br />lems reserve. Lender can no longer require loss reserve paymenL<; if Mortgage .Insurance coverage (in the
<br />amount and for the period that Lendcr requireR) provided by an inRUl'Cf selected hy Lender again becomes
<br />available, iR obtained, and Lender requires separately designated paymentR loward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower WllR
<br />required 1.0 make separHlcly designated payments toward the premiums for Mortgage Insurance, Borrower
<br />shall pay the premiullls required to maintain Mortgage InRuranee in effect, or to provide a non-refundable IOSR
<br />reserve, until Lender's requirement for Mortgage hlRurance endR in accordance wil.h any wriUen agreement
<br />between Borrower and Lender providing for such tennination or until termination is required by Applicable
<br />Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in I.hc Nole.
<br />Mortgage InRUl1l1lCe reimburseR Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower docs not repay the Loan UR agreed. Borrower iR nol. a party to the Mortgage InRurance.
<br />Mortgage insurerR evaluate their total risk on all such insurance in force from time to time, and may enter
<br />into agreemenlR with other parties that sharc or modify their risk, or reduce losses. TheRe agreements arc on
<br />terms and conditions that are satisfactory to the morlgage insurer and the other prnty (or parlieR) to these
<br />agreements. These ugreementR may require the mortgage inRurer to make payments using any source of fundR
<br />that the mortgage inRurer may hllve available (which nmy 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 />Page 6 of 11
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<br />Form 3028 1/01
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