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<br />200807437
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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
<br />of 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
<br />Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If
<br />the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance
<br />proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in
<br />Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
<br />claim 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-day
<br />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, and
<br />(b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by
<br />Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the
<br />coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or
<br />to pay amounts unpaid under the 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
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
<br />otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating
<br />circumstances 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
<br />Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
<br />order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
<br />determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall
<br />promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such
<br />purposes. 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. If the insurance or condemnation proceeds are not sufficient
<br />to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of
<br />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
<br />process, 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
<br />(or failed to provide Lender with material information) in connection with the Loan. Material
<br />representations include, but are not limited to, representations concerning Borrower's occupancy of the
<br />Property as Borrower's principal residence.
<br />
<br />.-6INE) (04071.02
<br />(A>
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<br />Page 7 of 1 5
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<br />Initials: J L 'f'\
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<br />S'?/J-
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<br />Form 3028 1101
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