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<br />200807776
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<br />knowledge or consent gave materially false, misleading, or inaccurate information or statements to
<br />Lender (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 />9. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security
<br />Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property
<br />and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for
<br />condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and
<br />rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a)
<br />paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in
<br />court; and (c) paying Reasonable Attorneys' Fees to protect its interest in the Property and/or rights
<br />under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the
<br />Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or
<br />board up doors and windows, drain water from pipes, eliminate building or other code violations or
<br />dangerous conditions, and have utilities turned on or off. Although Lender may take action under this
<br />Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed
<br />that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
<br />secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the
<br />lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless
<br />Lender agrees to the merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the
<br />Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for
<br />any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the
<br />mortgage insurer that previously provided such insurance and Borrower was required to make separately
<br />designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums
<br />required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a
<br />cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect,
<br />from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance
<br />coverage is not available, Borrower shall continue to pay to Lender the amount of the separately
<br />designated payments that were due when the insurance coverage ceased to be in effect. Lender will
<br />accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance.
<br />Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in
<br />full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve.
<br />Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and
<br />for the period that Lender requires) provided by an insurer selected by Lender again becomes available,
<br />is obtained, and Lender requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a
<br />non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with
<br />any written agreement between Borrower and Lender providing for such termination or until termination
<br />is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest
<br />at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it
<br />may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage
<br />Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may
<br />enter into agreements with other parties that share or modify their risk, or reduce losses. These
<br />agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party
<br />(or parties) to these agreements. These agreements may require the mortgage insurer to make payments
<br />using any source of funds that the mortgage insurer may have available (which may include funds
<br />obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
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<br />NE.7040.0708
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