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<br />200605536
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<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether
<br />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
<br />that Lender requires. Borrower shall also insure all improvements on the Property, whether now in
<br />existence or subsequently erected, against loss by floods to the extent required by law. All insurance shall
<br />be carried with companies approved by Lender. The insurance policies and any renewals shall be held by
<br />Lender and shall include loss payable clauses in favor of, and in a form acceptable to lender.
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<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
<br />payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the
<br />insurance proceeds my be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the
<br />Note and this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to
<br />prepayment of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds
<br />to the principal shall not extend or postpone the due date of the monthly payments which are referred to above or
<br />change the amounts of such payments. Any excess insurance proceeds over an amount required to pay all
<br />outstanding indebtedness un the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
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<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
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<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower shall occupy, establish,
<br />and use the Property as Borrower's principal residence within sixty days after the execution of the Security
<br />Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year
<br />after the date of the occupancy. Borrower shall not commit waste or destroy, damage or substantially
<br />change the Property is vacant or abandoned or the loan is in default. 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
<br />preserve such vacant or abandoned property.
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<br />6. 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
<br />shall pay these obligations on time directly to the entity which is owed the payment. If failure to pay would
<br />adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish
<br />to Lender receipts evidencing these payments.
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<br />If borrower fails to make these payments or the payments required by paragraph 2, or fail to perform any other
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender's right into the Property (such as proceeding in bankruptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's
<br />rights in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
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<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be secured
<br />by this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at
<br />the option of Lender, shall be immediately due and payable.
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<br />7. 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
<br />condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of
<br />indebtedness that remains unpaid under the Note and this Security Instrument, first to any delinquent
<br />amounts applied in the order provided in paragraph 3, and then prepayment of principal.
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<br />Any application of proceeds to the principal shall not extend or postpone t~e due date of the monthly payments,
<br />which are referred to in paragraph 2, or change the amount of such payments. Any excess proceeds over an amount
<br />required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity
<br />legally entitled thereto.
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<br />8. Fees. Lender may collect feeds and charges authorized by the lender.
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<br />9. Ground for Acceleration of Debt.
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<br />(a) Default. Lender may, except as limited by law may require immediate payment in full of all
<br />sums secured by this Security Instrument if:
<br />(I) Borrower defaults by failing to pay in full any monthly payment required by this
<br />Security Instrument prior to or on the due date of the next monthly payment, or
<br />(2) Borrower defaults by failing, for a period of thirty days, to perform any other
<br />obligations contained in this Security Instrument.
<br />(b) No waiver. If circumstances occur that would permit Lender to require immediate payment in
<br />full, but Lender does not require such payments, Lender does not waive its rights with respect
<br />to subsequent events.
<br />10. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full
<br />because of Borrowers failure to pay an amount due under the Note or this Security Instrument. This right
<br />applies even after foreclosure proceedings are instituted.
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<br />11. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time of payment or
<br />modification of amortization of the sums secured by this Security Instrument granted by lender to any
<br />successor in interest of Borrower shall not operate to release the liability ofthe original borrower.
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