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<br />200801477
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<br />Borrow~r shall promptly discharge any lien which has priority ov~r this Security Instrument unless
<br />BOlTower: (a) agrees in writing to the payment of the obligation secured by the li~n in a mann~r acceptable
<br />to Lemkr, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith
<br />by, or defends against enforcement of thc licn in, legal procecdings which in Lcndcr's opinion operate to
<br />prevent the cnforcement of tht: lien while those proct:t:dings art: pending, but only until such proceedings
<br />arc concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating
<br />the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien
<br />which l,;an attain priority over this S~eurity Instrument, Lender may give BOlTower a notice identifying the
<br />licn. Within I () days of the dati: on whidl that notil,;e is given, Borrower shall satisfy the lien or take one or
<br />more of the actions sct forth above in this Section 4.
<br />Lender may r~quire Borrower to pay a one-time l,;harge for a real estate tax verification and/or
<br />reporting service used by Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
<br />the Property insured against loss hy fire, hazards included within thc term "extended coverage," and any
<br />other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance.
<br />This insurance shall be maintained in the amounts (including deductible levels) and for the periods that
<br />Lender requires. What Lcndcr re(Iuires pursuant lo the preceding sentences can change during the term of
<br />the Loan. The insurance carrier providing the insurance shall be ehoscn by BOlTowcr subject to Lender's
<br />right to disapprove BOlTower's choice, whidl right shall nol be exercised unreasonably. Lender may
<br />require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone
<br />detcrmination, ccrtification and tracking services; or (b) a one-time charge for flood zone detemlination
<br />and certification services and subsequent charges each time remappings or similar changes occur whil,;h
<br />reasonably might affect such determination or certification. BOlTower shall also be responsible for the
<br />paymenl of any fees imposed by the Federal Emergency Management Agency in connection with the
<br />review of any flood zone determination resulting from an objection by Borrower.
<br />If Borrower fails to maintain any of the wveragcs desl,;ribed above, Lender may obtain insurancc
<br />coverage, al Lender's option and Borrower's expense. Lender is under no obligation 10 purchase any
<br />particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
<br />not protect Borrower. BOHowds equity in the Property, or the contents of the Property, against any risk,
<br />hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower
<br />acknowledges that the cost of thc insurancc covcrage so obtained might significantly exceed the cost of
<br />insurancc that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall
<br />become additional debt of Borrower seeurcd by this Sccurity Instrument. These amounts shall bear interest
<br />at thc Notc ratc from the dale of disbursement and shall be payable, with such interest, upon notil,;e from
<br />Lender to Borrower requesting payment.
<br />All insurance policies requircd by Lendcr and rcnewals of such polil,;ies shall be subject to Lender's
<br />right to disapprove such polil,;ies, 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 policics and renewal
<br />ecrtificatcs. If Lender requires, Borrower shall promptly give to Lendcr all rel,;eipts of paid premiums and
<br />renewal notices. If BOHowcr obtains any form of insurance coverage, not otherwise required by Lender,
<br />for damage to, or destruction of, the Property, stich policy shall include a standard mortgage clause and
<br />shall name Lender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall givc prompt noticc to the insurance carrier and Lender. Lcnder
<br />may make proof of loss if not made promptly by BOITower. Unless Lender and BOHower otherwise agree
<br />ill wriling, any insurance proceeds. whcther or not thc underlying insurance was requircd by Lender, shall
<br />be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and
<br />Lender's sel,;urity is not lesscncd. During such repair and restoration period, Lender shall have the right to
<br />hold stich insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the
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<br /><!Ill ~(NE) (0407)
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<br />Illilidl,(3 }n P
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<br />0757208954
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<br />Page 6 of 15
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<br />Form 3028 1/01
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