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<br />200608534
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<br />200607614
<br />
<br />provided that such inspeclion shall be undertaken promptly. Lender may disburse proceeds for the repairs and
<br />restoration in a single payment or in a series of progress payments as the work is compleled. Unless an agreement
<br />is made in writing or Applicable Law requires interest to be paid on such Insurance proceeds, Lender shall not be
<br />required 10 pay Borrower any interest or earnings on such proceeds. Fees fnr public adjusters, or other third parties,
<br />retained by Borrower shall not be paid out of the insurance proceeds and shall be lhe sole obligalion of Borrower.
<br />If the restoration or repair is nOl economically feasible or Lender's security would be lessened, the insurance proceeds
<br />shall be applied to the sums secured by lIlis Security Instrument, whether or nOllhen due, with lhe excess, ifany, paid
<br />to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any avallable insurance claim and
<br />related matters, If Borrower does not respond within 30 days to a nolice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin whenlhe
<br />notice is given. In either evenl, or if Lender acquires the Property under Section 22 or utherwise, Borrower hereby
<br />assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amoums unpaid
<br />under the Note Or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund
<br />of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights
<br />are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair Or reSlore lhe
<br />Property or to pay amounts unpaid under the Note or this Security Inslrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within 60 days after the execulion of this Security Instrument and shall conlinue to occupy the Property as Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonably withheld, Or unless extenuating circumstances exiSl which are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance and Proteclion of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Properly, allow the Property to deteriorate or commit waste on the Property. Whether or not
<br />Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Properly from
<br />deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or
<br />restoralion is not economically feasible, Borrower shall promptly repair the Property if damaged 10 avoid further
<br />deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking
<br />of, the Property, Borrower shall be responsible for repairing or restoring the Property only If Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for lIle repairs and restoration in a single payment Or in
<br />a series of progress payments as the work Is completed. If the insurance or condemnalion proceeds are not sufficient
<br />10 repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair
<br />or restoralion.
<br />Lender or its agent may make reasonable entries upon and inspeclions of lIle Property. If it has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower nOlice at the time
<br />of Or prior tu such an interior lnspeclion specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be In default if, during the Loan appllcation process,
<br />Borrower or any persons or entities aCllng al the direction of Borrower Or wllh Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or stalements to Lender (or failed to provide Lender with
<br />malerial information) in connection with the Loan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal 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) lhere is a legal
<br />proceeding that might significantly atl'ect Lender's interest in the Property and/or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condemnation Or furfeiture, for enforcement of a lien which may
<br />attain priority over this Security Instrument or to enforce laws Or tegulations), or (c) Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable Or appropriate to protect Lender's interest in the
<br />Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and securing and/or repairing the Property. Lender's actions can include, but are not limited to; (a) paying any sums
<br />secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured
<br />posilion in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make 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 turned on or off. Although Lender may lake action
<br />under this Section 9, Lender does not have to do so and is not under any duty Or obligation to do so. It is agreed that
<br />Lender incurs no liahility for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under lhis Seclion 9 shall hecome additional debt of Borrower secured by this
<br />Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be
<br />payahle, with such illlerest, upon notice from Lender to Borrower requesting payment.
<br />If lIlis Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the
<br />merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condilion of making the Loan, Borrower
<br />shall pay the premiums required to maintain the Mortgage Insurance In etl'ect. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage
<br />Insurance, Borrower ,hall pay the premiums required to obtain covel'1ig~ substantially equivalent to the Mortgage
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<br />Borrower lnllials:
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<br />ie Mac UNIFORM INSTRUMENT. MERS
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