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<br />200801095
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<br />acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien
<br />in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's
<br />opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only
<br />until such proceedings are concluded; or (c) secures from the holder of the lien an agreement
<br />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 can attain priority over this Security Instrument, Lender
<br />may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is
<br />given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section
<br />4.
<br />
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or
<br />reporting service used by Lender in connection with this Loan.
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<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage," and any
<br />other hazards including, but not limited to, earthquakes and floods, for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts (including deductible leve]s) and for the
<br />periods that Lender requires. What Lender requires pursuant to the preceding sentences can change
<br />during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower
<br />subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised
<br />unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time
<br />charge for flood zone determination, certitication and tracking services; or (b) a one-time charge for
<br />flood zone determination and certification services and subsequent charges each time remappings or
<br />similar changes occur which reasonably might affect such determination or certitication. Borrower
<br />shall also be responsible for the payment of any fees imposed by the Federal Emergency Management
<br />Agency in connection with the review of any flood zone determination resulting from an objection by
<br />Borrower.
<br />
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance
<br />coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any
<br />particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
<br />not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any
<br />risk, hazard or liability and might provide greater or lesser coverage than was previously in effect.
<br />Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed
<br />the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this
<br />Section 5 shall become additional debt of Borrower secured by this Security Instrument. These
<br />amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lender to Borrower requesting payment.
<br />
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
<br />right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as
<br />mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and
<br />renewal certiticates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br />premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise
<br />required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard
<br />mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee.
<br />
<br />In the event of loss, Borrower shall give prompt notice 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 required by Lender, shall
<br />be applied to restoration or repair of the Property, if the restoration or repair is economically feasible
<br />and Lender's security is not lessened. During such repair and restoration period, Lender shall have the
<br />right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to
<br />ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be
<br />undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment
<br />or in a series of progress payments as the work is completed. Unless an agreement is made in writing or
<br />Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to
<br />pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third
<br />parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole
<br />obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security
<br />would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds
<br />shall be applied in the order provided for in Section 2.
<br />
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim
<br />and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
<br />insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-
<br />day period will begin when the notice is given. In either event, or if Lender acquires the Property under
<br />Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument,
<br />
<br />Initials
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