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<br />200802515
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<br />work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of
<br />progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
<br />requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower
<br />shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration
<br />or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid
<br />to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2,
<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 3D days to a notice from Lender that the insurance
<br />carrier has offered to settle a claim, then Lender may negotiate and settle the claim, The 3D-day period will
<br />begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or
<br />otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount
<br />not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's
<br />rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance
<br />policies covering the Property, insofar as such rights are applicable to the coverage of the Property, Lender
<br />may use the insurance proceeds either to repair or restore the Property or to pay amount<; unpaid under the
<br />Note or this Security Instrument, whether or not then due,
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise
<br />agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances
<br />exist which are beyond Borrower's controL
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property,
<br />Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent
<br />the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to
<br />Section 5 that repair or restoration is not economically feasible. Borrower shall promptly repair the Property if
<br />damaged to avoid further deterioration or damage, If insurance or condemnation proceeds are paid in
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or
<br />restoring the Property only if Lender has released proceeds for such purposes, Lender may disburse proceeds
<br />for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed, If the insurance or condemnation proceeds are not sufficient to repair or restore the Property,
<br />Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration,
<br />Lender or its agent may make reasonable entries upon and inspections of the Property, If it has
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property, Lender shall give
<br />Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause,
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
<br />knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or
<br />failed to provide Lender with material information) in connection with the Loan, Material representations
<br />include, but are not limited to, representations concerning Borrower's occupancy of the Property as
<br />Borrower's principal residence.
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<br />InitlaIS:~
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<br /><!IIt-6A(NE) (0407),01
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<br />Page 70f15
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<br />Form 3028 1/01
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