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<br />shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices
<br />of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly
<br />furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower:
<br />(a) agrees in writing to the payment of the obligations secured by the lien in a manner acceptable to Lender; (b)
<br />contcsts in good faith the lien by, or defends against enforcement of the lien in, legal proceeding which in the
<br />Lender's opinion operatc to prevent the enforcement of the lien; or (c) secures trom the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br />part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth
<br />above within 10 days of the giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected
<br />on the Property insured against loss by fire, hazards included within the tenn "extended coverage" and any other
<br />hazards, including floods or flooding, for which Lender requires insurance. This insurancc shall be maintained in the
<br />amounts and for the periods that Lender requires. The insurancc carricr providing the insurance shall be chosen by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, Lcnder may, at Lendcr's option, obtain coverage to protcct Lender's rights in the Property
<br />in accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage c1ausc.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to
<br />the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not
<br />lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />any excess paid to Borrower. If Borrower abandons thc Property, or docs not answer within 30 days a noticc from
<br />Lender that the insurance carrier has otfered to settle a claim, then Lender may collect the insurance proceeds.
<br />Lender may usc the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument,
<br />whether or not then due. The 30-day period will begin when the notice is given.
<br />Unlcss Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not
<br />extend or postpone the due date ofthe monthly payments referred to in paragraphs 1 and 2 or change the amount of
<br />the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies
<br />and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured by this Security Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution ofthis Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent
<br />shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the
<br />Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that
<br />in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien
<br />created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as
<br />provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good
<br />faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the
<br />lien ereated by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower,
<br />during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed
<br />to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but
<br />not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this
<br />Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower I
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<br />SEE PAGES 1, 2, 4, 5, 6 AND 7 FOR ADDITIONAL IMPORTANT TE~)~;l:~~i"
<br />204643206/05/0717:01 PRlCEM1TCHELL InitialMX / 1// I
<br />72-4//4C c/. Pag 30
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