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<br />200801606
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<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 certificates. If lender requires, 80rrower shan promptly give to lender all receipts of paid
<br />premiums and renewal notices. If Borrower obtains any form al insurance coverage, not otherwise
<br />required by lender, for damage to, or destruction of, the Property, such polley shall include a
<br />standard mortgage clause and shall name lender as mortgagee and/or as an additional loss payee.
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<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
<br />may make proof of loss if not made promptly by Borrower. Unle8s lender and Borrower otherwise
<br />agree in writing, any insurance proceeds, whether or not the underlying Insurance was required by
<br />Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is
<br />economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to hold such insurance proceeds until Lender has had an
<br />opportunity to inspect such Property to ensure the work has been completed to lender's satisfaction,
<br />provided that such inspection shall be undertaken promptly. lender may disburse proceeds for the
<br />repairs and restoration in a single payment or In a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on
<br />such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on
<br />such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be
<br />paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or
<br />repair is not economically feasible or lender's security would be lessened, tho insurance proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due, with the
<br />excess, if any, paid to Borrower. Such insurance proceeds shall be applied In the order provided for
<br />in Section 2.
<br />If Borrower abandons the Property, lender may file, negotiate and settle any available insurance
<br />olaim and related matters. If Borrower does not respond within 30 days to a notice from lender that
<br />the insurance carrier has offered to settle a claim, then lender may negotiate and settle the claim. The
<br />3o-day period will begin when the notice Is given. In either event, or If Lender acquires the Property
<br />under Section 22 or othelWise, Borrower hereby assig08 to lender (a) Borrower's rights to any
<br />insurance proceeds In an amount not to exceed the amounts unpaid under the Note or this Security
<br />Instrument, and (b) any other of Borrower's rights(other than the right to any refund of unearned
<br />premiums paid by Borrower)under all insurance policies covering the Property, insofar as such rights
<br />are applicable to the coverage of the Property. lender may use the insurance proceeds either to
<br />repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,
<br />whether or not then due.
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<br />6. Occupancy. BOlTower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy
<br />the Property 8S Borrower's principal residence for at least one year after the date of occupancy,
<br />unless Lender otherwise agrees In writing, which consent shall not be unreasonably withheld, or
<br />unless extenuating circumstances exist which are beyond Borrower's control.
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<br />7. Preservation, Maintenance and Protection of the Property; InpeoUona.Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
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<br />MERlI ModltlMl Form '02&11111
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<br />4200055
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<br />NEBIlAlltv....lngI. "'mlly-FANNIE "'A~FlEODli "'AC UNIPOIlU INSTRUMENT
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