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<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hu.ards included within the term Wextended coverage~ and any other hazards, including
<br />floods or flooding, for which Lender requires insurance, This insurance shall be maintained in the amounts and for the periods
<br />that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br />which shall not be unreasonably withheld. If Borrower fails to maintain coverage describc.d above, Lender may. at Lender's
<br />option. obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall indude a standard mortgage clause. Lender
<br />s~lall have the right to hold the policies and renewals. If Lender requires, Borrower rhall promptly give to Lender all receipts of
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may make proof of loss if not made promptly b~ Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall re applied to restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br />repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sum:;
<br />secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br />Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to seule a claim, then
<br />Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br />secured by this Security Instrument, whether or not then dUe. T!e 30-day period 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 or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 21 the Property's acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br />damage to the Property prior to t. ie acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument
<br />immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan,..Applicatlon: Leaseholds.
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within shty days after the execution of
<br />this Security Instrument and shall continue h) OCcupy the Property as Borrower's principal residence for at least one year after
<br />the date of occupancy, '~n!ess Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br />extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br />Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in defaull if any forfciture
<br />'Ietion or proceeding, whether civil or criminal, is begun that in Lender's good faith judgmcnt could result in lilrfcilure of thc
<br />Property or otherwise materially impair the lien created by this Security Instrument or Lender's security intcrest. Borrowcr may
<br />cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with II ruling
<br />that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or othcr material
<br />impairment of the lien crcated by this Security Instrument or Lender's security interest. Borrowcr shall also be in default if
<br />BOrf(Jwer. during the loan application process, gave materially false or inaccurate informatio~ or statements to Lender (or failed
<br />to provide Lender with any material information) in connection with the loan evidenced hy the Note, including, hut not limited
<br />to, representations concerning Borrower's occupancy of the Property .:lS a principal residence. If this Sccurity Instrument is on a
<br />leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fce title to the Property, thc
<br />leaschold and the fee title shall not merge unless Lender agrccs to the mcrger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borr:)wer fails to perli,nnthe covenants and agreements conlained in
<br />this Security Instmmcnt. or there is a legal proceeding that may significantly affect Lender's rights in the Propcrty (slll"h as a
<br />proceeding in bankmptcy, probate, for condemnation or forfeiture or to enfolce laws or regulations). thcn Lender may do and
<br />pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br />include paying any sums secured hy a lien which has priority over this Security Instrumcnt, appe:lring in court, paying
<br />reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take ljction under this paragraph
<br />7, Lender docs not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower sel'urcd hy this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall hear interest from the
<br />date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender tn Borrower requesting
<br />payment.
<br />R. MOl1gage Insurance. If Lender required mortgage insurance as a condition of making the IlIan sccurcd hy this Security
<br />Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If. for any reason, the
<br />mortgagc insurance coverage required by Lender lapses or ceases to be in effect, norrower shall pay the premiums required to
<br />obtain coveragc substantially equivalent to the mortgage insurance previously in effect, at a Cnst subslllntially equivalent to the
<br />cost to Borrowcr of the mortgage insurance previously in effect. from an alternate mortgage insurer llpprnved hy Lender. If
<br />substantially equivalent mortgage insurance coverage is not avail:lble, Borrower shall pay to Lender each month a sum equal 10
<br />one-twelfth of the yearly mortgage insurance premium heing paid by Borrower when the insurance coverage I:lpsed or ceased to
<br />be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve
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<br />Form 3021 '/10
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