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<br />200700292
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<br />5. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date of occupancy, unless (a) Borrower has disclosed to
<br />Lender at application for the Loan that the Property shall not be Borrower's principal residence; (b) Lender
<br />otherwise agrees in writing, which consent shall not be unreasonably withheld; or (c) unless extenuating
<br />circumstances exist which are beyond Borrower's control.
<br />6. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br />not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property,
<br />Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the
<br />Property from deteriorating or decreasing in value due to its condition, Unless it is determined pursuant to Section 4
<br />that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to
<br />avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage
<br />to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender
<br />has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single
<br />payment or in a series of progress payments as the work is completed, If the insurance or condemnation proceeds
<br />are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the
<br />completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property, If it has reasonable
<br />cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at
<br />the time of or prior to such an interior inspection specifying such reasonable cause.
<br />7. Borrower's Loan Application. Borrower shall be in default if, during the Loan application
<br />process, 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 provide
<br />Lender with material infonnation) in connection with the Loan. Material representations include, but are not limited
<br />to, (a) representations concerning Borrower's occupancy of the Property as Borrower's principal residence and (b)
<br />liens on the Property that have priority over this Security Instrument.
<br />8. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perfonn the covenants and agreements contained in this Security Instrument
<br />or any obligation that is secured by a lien that is superior to this Security Instrument, (b) there is a legal proceeding
<br />that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as
<br />a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of any lien which may attain
<br />priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property,
<br />then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property
<br />and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and
<br />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
<br />secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the
<br />Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate
<br />building or other code violations or dangerous conditions, and have utilities turned on or off, Although Lender may
<br />take action under this Section 8, Lender does not have to do so and is not under any duty or obligation to do so, It is
<br />agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 8.
<br />Any amounts disbursed by Lender under this Section 8 shall become additional debt of Borrower secured
<br />by this Security Instrument. These amounts shall bear interest at the rate applicable to the Debt Instrument from
<br />time to time, from the date of disbursement and shall be payable, with such interest, upon notice from Lender to
<br />Borrower requesting payment.
<br />If this 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 />9. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Lender, subject to the rights of any lienholder with rights to Miscellaneous Proceeds
<br />that are superior to Lender's rights.
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<br />liilliililliiii~iiiiliiill~i (5/4/06)
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<br />(page 5 of 13 pages)
<br />Documents Processed 12-18-2006,08:32: 18
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