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<br />200904931
<br />Hazard or Property Insurance. Borrower "shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br />Property in accordance with section titled Protection of Lender's Rights in the Property.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or
<br />repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not
<br />lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />any excess paid to Borrower. If Borrower abandons the Property, or does not answer within the number of days
<br />prescribed by Applicable Law as set forth in a notice from Lender to Borrower that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or
<br />restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The period of
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the payments referred to in the sections titled Secured Indebtedness; Payment of
<br />Principal and Interest; Late Charges and Other Loan Charges and Funds for Taxes and Insurance or
<br />change the amount of the payments. If under the section titled Acceleration; Remedies, the Property is acquired
<br />by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to
<br />the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior
<br />to the acquisition.
<br />Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate,, or commit waste on
<br />the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun
<br />that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the
<br />lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and
<br />reinstate, as provided in section titled Borrower's Right to Reinstate, by causing the actior or proceeding to be
<br />dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the 1,,orrower's interest in
<br />the Property or other material impairment of the lien created by this Security Instrument I r Lender's security
<br />interest. Borrower shall also be in default if Borrower, during the loan application process, gav materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any mater al information) in
<br />connection with the loan evidenced by the Secured Indebtedness. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title t, the Property, the
<br />leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />Protection of Lender's Rights in the Property. If Borrower fails to perform the covenant 3 and agreements
<br />contained in this Security Instrument, or there is a legal proceeding that may significantly affec Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or i � enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and
<br />Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien rhich has priority
<br />over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering -.,n the Property to
<br />make repairs. Although Lender may take action under this section, Lender does not have to do so
<br />Any amounts disbursed by Lenc:er under this section shall become additional debt of Borrowe secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these am aunts shall bear
<br />interest from the date of disbursement at the rate specified in the Secured Indebtedness and shall {Ie payable, with
<br />interest, upon notice from Lender to Borrower requesting payment.
<br />Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan ;ecured by this
<br />Security Instrument, Borrower sbAl pay the premiums required to maintain the mortgage insurance 'n effect. If, for
<br />any reason, the mortgage insurance-coverage-required by-tender lapses -or ceases to be in effect, Borrower shall
<br />pay the premiums required to obtain coverage substantially equivalent to the mortgage insuran(,, previously in
<br />effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,
<br />from an alternate mortgage insurer approved by Lender. if substantially equivalent mortgage insurance coverage is
<br />not available, Borrower shall pay to Lender each month a sum equal to one - twelfth of the y. irly mortgage
<br />insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be ir, effect. Lender
<br />will accept, use and retain these payments as t loss reserve in lieu of mortgage insurance. Loss re:, rve payments
<br />may no longer be required, at the option of ,ender, if mortgage insurance coverage (in the amount and for the
<br />period that Lender requires) provided by an hisurer approved by Lender again becomes available a d is obtained.
<br />Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide .3 loss reserve,
<br />® 2004.2008 Copyright Compliance Systems, Inc. 74ED -0818 - 2008.10.28 -..r` www. .mpliancesystems.com
<br />Consumer Real Estate - Security Instrument DL2036 Pa e 3 of 800. 968 -8' I - Fax 616 - 956.1868
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