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<br />are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occapancy. 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 Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not
<br />Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from
<br />deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or
<br />restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further
<br />deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking
<br />of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in
<br />a series of 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 such repair
<br />or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time
<br />of or prior to such an interior inspection specifying such reasonable cause,
<br />B. 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 knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with
<br />material information) in connection with the Loan. Material representations include, but are not limited to,
<br />representations concerning $orrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. if (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of alien which may
<br />attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the
<br />Property and 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 aze not limited to: (a) paying any sums
<br />secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees W protect its interest in the Property and/or rights under this Security Instrument, including its secured
<br />position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, cntaing the Property to
<br />make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or
<br />other code violations or dangerous conditions, and have utilities turned on or off: Although Lender may take action
<br />under this Section 9, Lender does not have to do so and is not under any duty or obligation tv da so. it is agreed that
<br />Lender incurs no liability for not taking any yr all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Security Instrument 'Chese amounts shall bear interest at the Notc rate from the date of disbursement and shall be
<br />payable, with such interest, upon notice from Lender to Borrower requesting payment,
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease.
<br />Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease.
<br />Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger
<br />in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower
<br />shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage
<br />Insurance covcragc rcquircd by Lcndcr ceases to be available from the mortgage insurer that previously provided such
<br />insurance and Borrower was rcquircd to make separately designated payments toward the premiums For Mortgage
<br />Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage
<br />Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance
<br />previously in effect, from an alternate mortgage insurer selected by Lender, If substantially equivalent Mortgage
<br />Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated
<br />payments that were due when the insurance covcragc ceased to be in effect. Lender will accept, use and retain these
<br />payments as anon-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall benon-refundable,
<br />notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any
<br />interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance
<br />covcragc (in the amount and for the period that Lcndcr requires) provided by an insurer selected by Lcndcr again
<br />becomes available, is obtained, and Lcndcr requires separately designated payments toward the premiums for
<br />Mortgage 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, Borrower shall pay
<br />the premiums rcquircd to maintain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until
<br />Lender' s requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
<br />NIBF2ASKA--Single Famlly--Fannle Mae/Freddia Mac UNIFpRM INSTRUMENT DocMaylc eao~esa3e2
<br />Form 3028 1/D1 Page 5 of 11 www.dacmaglc.com
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