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200710609 required by Lender, for damage to, .or destruetian of, the Property, such palicy shall include a standard martgage clause and shall name Lender as mortgagee and/ar as an additional lass payee. In the event .of lass, Borrower shall give prompt natice to the insurance carrier and Lender. Lender may make proof of lass if nat made promptly by Barrawer. Unless Lender and Barrower otherwise agree in writing, any insurance proceeds, whether .or nat the underlying insurance was required by Lender, shall be applied ta restaratian or repair .of the Property, if the restaratian or repair is economically feasible and Lender's security is not lessened. During such repair and restaration period, Lender shall have the right ta hald such insurance proceeds until Lender has had an opportunity to inspect such Property ta ensure the wark has been completed ta Lender's satisfactian, provided that such inspection shall be undertaken pramptly. Lender may disburse proceeds for the repairs and restoration in a single payment .or in a series .of progress payments as the wark is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid an such insurance proceeds, Lender shall nat be required ta pay Borrower any interest or earnings on such praceeds. Fees far public adjusters, .or ather third parties, retained by Borrawer shall not be paid out .of the insurance proceeds and shall be the sole abligatian of Borrawer. If the restoratian .or repair is not ecanamically feasible .or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or nat then due, with the excess, if any, paid ta Borrawer. Such insurance proceeds shall be applied in the order provided far in Sectian 2. If Barrower abandans the Property, Lender may file, negatiate and settle any available insurance claim and related matters. If Borrawer does not respand within 30 days ta a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 20 or otherwise, Borrower hereby assigns to Lender (a) Borrawer's rights to any insurance proceeds in an amount nat ta exceed the amaunts unpaid under the Nate or this Security Instrument, and (b) any other .of Borrower's rights (other than the right to any refund of unearned premiums paid by Barrower) under all insurance policies cavering the Property, insofar as such rights are applicable to the caverage of the Property. Lender may use the insurance proceeds either to repair or restare the Property or to pay amounts unpaid under the Nate .or this Security Instrument, whether .or not then due. 5. Occupancy. Barrawer shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the executian .of this Security Instrument and shall continue ta .occupy the Property as Barrower's principal residence far at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which cansent shall not be unreasonably withheld, .or unless extenuating circumstances exist which arc beyond Barrawer's control. 6. Preservation, Maintenance and Protection of the Property; Inspections. Barrowcr shall not destroy, damage or impair the Property, allow the Praperty to deteriarate or commit waste on the Property. Whether .or not Barrawer is residing in the Property, Barrawer shall maintain the Property in .order to prevent the Praperty from deteriarating .or decreasing in value due ta its canditian. Unless it is determined pursuant ta Sectian 4 that repair or restoratian is nat ecanamically feasible, Barrawer shall promptly repair the Property if damaged ta avaid further deteriaratian .or damage. If insurance .or candemnation praceeds are paid in cannectian with damage ta, .or the taking .of, the Property, Borrawer shall be respansible far repairing .or restaring the Property .only if Lender has released proceeds far such purpases. Lender may disburse praceeds for the repairs and restaratian in a single payment .or in a series of progress payments as the work is campleted. If the insurance or condemnatian proceeds are not sufficient ta repair .or restare the Praperty, Barrawer is nat relieved of Barrower's abligatian for the campletion .of such repair or restaratian. Lender .or its agent may make reasanable entries upan and inspections .of the Property. If it has reasanable cause, Lender may inspect the interiar of the improvements an the Property. Lender shall give Barrower natice at the time .of .or prior ta such an interiar inspectian specifying such reasanable cause. 7. Bor.rower's Loan Application. B.orrawer shall be in default if, during the Loan applieatian process, Barrower .or any persans .or entities acting at the directian .of Borrawer .or with Barrawer's knawledge .or cansent gave materially false, misleading, .or inaccurate infarmatian .or statements ta Lender (.or failed ta pravide Lender with material infarmatian) in connectian with the Loan. Material representatians include, but are nat limited ta, representations cancerning Barrawer's .occupancy .of the Property as Borrawer's principal residence. 8. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Barrawer fails ta perfarm the cavenants and agreements cantained in this Security Instrument, (b) there is a legal praceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for candemnatian .or farfeiture, far enfarcement .of a lien which may attain priarity aver this Security Page 4 of 10 NE.2029-1206