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<br />200702912
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<br />DOC IO #: 00016552167503007
<br />5, Property Il1IIlU'an<<, Borrower ~hllll keep the improvementsllowexisting or hereafter erected 011 the
<br />Property iusured against loss by fire, hazards included within the tenn "extended coverage," and any other
<br />hazards including, but not limited to, earthquakes and floods, for which l~nder requires insurance. This
<br />insurance shall be maintained in the amounts (including deductible levels) and for the periods that J~nder
<br />requires. What Lender requires purnuant to the preceding sentences can change during the term of the Loan.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to J~nder's right to
<br />disapprove Borrower's choice, which right shall not be exercised Imrea80nably. Lender may require Borrower
<br />to pay, in connectIon with Ihis Loan, either: (a) " one-time charge tor t1000 zone determination, certitlcatlon
<br />and tracking services; or (b) a one-time charge for flood zone determination and certitication services and
<br />subsequent charges each time remappings or similar changes occur which reasonably might atrect such
<br />determination or oortificlltion. Borro\Wr shan also 00 responsible tor the payment of any tees imposed by the
<br />Federal Emerg'..ucy Management Agency in connection with the review of any flood Zone determination
<br />resulting from an objection by Borrower.
<br />If Borrower fails to maintain any of the covemges descril:><xl al'>ove, Lender may obtain insumnce
<br />coverage, at Lender's option and Borrower's expense. Lender is under no obligation t~l purchase any particular
<br />type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect
<br />Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard o.r
<br />liability and might provide greater or lesser coverage than was previously in elTecl. Borrower acknowledges
<br />that the cost of the insurance coverage so obtained might significantly exceed the cost of .insurance that
<br />Borrower could have obtained. Any amounts disbursed by Lender ullder this Section 5 shall become additio.nal
<br />debt o.f Bonowcr sccured by this Security Instrument. These alllOutUs shall bear interest at the No.te rate from
<br />the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />All insurance policies required by Lender and renewals o.f such policies shall be subject to Lender's right
<br />to. disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee
<br />and/or as an additional loss payee. Lender shatl have the right to hold the policies and renewal certificates_ If
<br />Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If
<br />Borrower obtains any form of insUfllllCc covernge, not o.therwise required by Lender, for damage to.. or
<br />dcstruction o.f, the Property, such policy shall include a standard mortgage clause and shall namc Lender as
<br />mortgagee and/or as an additional loss payee.
<br />In the evcnt ofloss, Borrower shall give promplnotice to the insurance carrier and Lender. Lender may
<br />make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in
<br />writing, any insurance proceeds, whether or not the underlying insurance was rcquired by Lender, shall be
<br />applied to restoration or repair of the Property, if the rcstomtion or repair is economically fcasiNe and
<br />Lcnder's security is not less<'-ned. During such repair and restoratio.n period, Lender shall have the right to hold
<br />such inaurance procc:eds until Lender hall had an opportunity to inspect such Property to ensure the work has
<br />been completed to Lender's satisfaction, provided that such inspection shall 00 undertaken promptly. Lender
<br />may disburse proceeds for the repairs and restoration in a sillgle payment o.r in a series of progress payments
<br />as the wo.rk is completed. Unless an agreement is made in writing or Applicable Lsw requires interest to be
<br />paid on such insurance proceeds, Lender shall not 00 required to pay Borrower any interest o.r earnings on
<br />such proceeds. Fees tbr public adjusters, or other third parties, mained by Borrower shall not be paid o.m of
<br />the insurance proceeds and shall be the sole obligatio.n of Borrower. If the restoration or repair is not
<br />economically feasible or Lender's security would 00 lessened, the insurance proceeds shall be applied to the
<br />sums seourOO by this Soourity Instrument, whether o.r not then due, \',ith the excess, if any, paid In Borro.wer.
<br />Such insurance proceeds shall be applied in the order provided fo.r in Section 2.
<br />If Borro.wer abandons the Property, I,ender may file, negotiate and settle any availablc insurance claim
<br />and rclated matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance
<br />carrier has offered to settle a claim, then Lender may negotiate and settle the claim_ The 30-dlly period will
<br />begin when the notice is given. In either event, or if l~nder acquires the Properly under Section 22 or
<br />otherwise, Borrower hereby assigus to Lender (a) Borrower's rights to any insurance proceeds in an amount
<br />no.t to exceed the amounts unpaid wIder the Note or this Security Instnunent, and (b) any other of Borrowds
<br />rights (other than the right to any refund ofuneamed premiums paid by Borrower) under all insurance policies
<br />covering the Property, insofar 1111 such rights are applicable to the coverage of the Property. Lender may IIse
<br />the insurance proceeds either to repair or resrore the Property or 10 pay amounts unpaid under the Note or this
<br />Security Instrument, 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 execution of this Security Instrument lUld shall continue to occupy thc Property as
<br />Borrower's principal residence for at least onc yellr afler the date of occupancy, uttless Lender otherwise
<br />agrees in writing, which consent shall not be wneasonably withheld, or unless ,*tenuating circumstances exist
<br />which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; IospoctiollS. Borrower shall not
<br />destroy, damage or impllir the Property, allow the Property to deteriorate or commit waste on the Property_
<br />Whether or not Borrower is residing in the Property, Bonower shall maintain the Property in o.rder to prevent
<br />the Property from deteriorating or decreasing in value due to it~ condition_ Unless it is determined pursuant to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
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<br />_ 41A(NE) (0407)
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<br />CHI, (08I0li)
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<br />1'09"50111
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<br />Form 3028 1101
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