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<br />200603660
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<br />DOC 10 #: 00013498288904006
<br />damaged to avoid further deterioration or damage. If insurance or condemnation proceeds arc 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 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 o[Borrower's obligation [or the completion o[ such repair or restoration.
<br />Lender or it'l 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 time 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 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. Material representations include, but
<br />are not limited to, represcntations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a
<br />legal procceding that might signilicantly affect Lender's interest in the Property and/or rights under this
<br />Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
<br />enforcement of a lien which may attain priority over this Security Instrument or to cnforce laws or
<br />regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay [or whatever is
<br />reasonable or appropriate. to protect Lender's interest in the Property and rights undcr 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, but are not limitcd to: (a) paying any sums secured by a lien which has priority
<br />over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its
<br />interest in thc Property and/or rights under this Security Instrument, including it'l secured position in a
<br />bankruptcy proceeding. Securing the Property includes, but is not limited to, entering thc Property to make
<br />repairs, change locks, replace or board up doors and windows, drain water from pipes, climinate building or
<br />other code violations or dangerous conditions, and havc utilities turned on or off. Although Lcnder may take
<br />action 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 interest 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 Security Instrument is on a leasehold, Borrower shall comply with all the provisions o[ the lease.
<br />If Borrower acquires fee title to the Propcrty, the leasehold and the fec titlc shaH not merge unless Lender
<br />agrees to the merger in writing.
<br />to. Mortgage Insurance. If Lendcr required Mortgagc Insurance a'l a condition of making the Loan,
<br />Borrower shall pay the premiums requircd to maintain the Mortgage Insurance in effect. If, for any reason, thc
<br />Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insurance and Borrower was required to make separately designated payments
<br />toward thc premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coveragc
<br />substantially equivalent to the Mortgagc Insurance previously in cffcct, at a cost substantially equivalent to thc
<br />cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected
<br />by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue
<br />to pay to Lender the amount of thc scparately designated payment'l that were due when the insurance coverage
<br />ceased to be in effect. Lender will accept, use and retain these payments as a non-refundablc loss reserve in
<br />lieu of Mortgage Insurancc. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan
<br />is ultimately paid in full, and Lender shall not bc required to pay Borrowcr any interest or earnings on such
<br />loss reserve. Lender can no longer require loss rcserve payment'l if Mortgage Insurance coverage (in the
<br />amount and for thc period that Lender requircs) provided by an insurer selected by Lender again becomes
<br />availablc, is obtained, and Lender requires separately designatcd payments toward the premiums for Mortgagc
<br />Insurance. If Lender rcquired Mortgage Insurance as a condition of making the Loan and Borrower was
<br />required to make separately designatcd payments toward thc premiums for Mortgage Insurance, Borrowcr
<br />shall pay thc premiums required to maintain Mortgage Insurance in effcct, or to provide a non-refundable loss
<br />rcserve, until Lender's requirement for Mortgage Insurance cnds in accordance with any written agrecmcnt
<br />betwccn Borrower and Lender providing for such termination or until tcrmination is required by Applicable
<br />Law. Nothing in this Section 10 affects Borrower's obligation to pay intcrcst at the rate provided in the Note.
<br />Mortgage Insurance reimburscs Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower does not repay thc Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurcrs evaluate their total risk on all such insurance in force from time to time, and may enter
<br />into agreemcnts with other parties that share or modify their risk, or reduce losses. These agrecments are on
<br />tcrms and conditions that are satisfactory to the mortgage insurer and thc othcr party (or parties) to these
<br />agreements. These agrcements 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 Mortgagc Insurance
<br />premiums).
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<br />CIll-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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