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<br /> � �5- �rs1 ar Property I►xsura.nce. Bprrower shall keep the improvements now existin� ar hereafter erected on the
<br /> Property i�isured against loss by fire, hazards in�luded within the term "�xtende� coverage' and any oihe�' hazatds, including
<br /> flo4ds or 1�ooding, fpr which L.ende,r rr.quires insurance. This insuranre shal� be maint�ined ie the amounts and for the periais
<br /> [hat L.end�c requares. Thr. insurance c.arriar providing the insurance shalt b�e chasen by Borrower subject to L.ender's upproval
<br /> which shall not be unredsonably withheld. If �orrower fails to maintain coverage described above, L.ender may, ac I,ender's
<br /> optian, obtain coverage to prr�tcct L.ender's ri�hts in the Property in accardance with paragraph 7.
<br /> All insurance �licies and renevvals shall be acceptable ta L.ender and shali inciude a standard mortgage clause. Lender
<br /> shail have the right to hold thc policies and renewais. If I.ender requires, �orrower shall promptly�ive to L.ender all receipts uf
<br /> paid premiums and renewal nnNces. ir� thc event nE'loss, Borrower shall give prompt natice to the insurance carrier and Lender.
<br /> Lender may make prnof of loss if nnt made pmmptly by &�rrower.
<br /> Unless L.ender and $orrowcr othenvise agree in wciting, insurance proceeds shall be applieci to restoration or repair qf the
<br /> Property damaged, if the restoration or repair is economically feasible and Lender's security is not {essened. If the restoration or
<br /> repair is not economically feasible or T_ender's security would be lessened, the insurance proceecis shall be applied to the sums
<br /> sexured by this 5ecurity Instrument, whether or not th�n due, with any excess pa'sd to Borrower. If I3orrower abandons the
<br /> Property, or does not answer within 3Q days a notice f�om Lcnder that the insurance carrier has offered to settfe a claim, then
<br /> I.ender may ;.ollect the insura �� prrrceeds. L.ender may use the prpceeds to repair or resrore the Property or to pay �ums
<br /> sexured by this Security Ynstrument, w•hether or not then due. The 30-day period will b�gin when the notice is given.
<br /> Unless Lender and Borrower otherr�•ise agre.� in writing, any a}�plication of proceeds to principal shall not extend or
<br /> postponc the duc date vf thc monthly payments referred to in paragra}�hs 1 and 2 or change the amount of the payments. If
<br /> under paragraph 21 the Property is acq,uired by Lender, $orrower's right to any insurance policies and procceds resulting from
<br /> danrage tc7 tlte Frope��y prior to thc a�q�;;ition ;hatl pass ta:.,erdcr ta the extent of the sums secured by this Security Instrument
<br /> immediate(y prior to tl�e acquisition.
<br /> 6. (kcnpancy, I're.servation, 1�laintenance and Pmtettion of the Property; Borrower's Loan Application; L,easeholds.
<br /> $vrrower shall occu�y, establish, and use the Property as Borrawcr's principal residence urithin sixty days after the execution of
<br /> this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at lcast one year aftcr
<br /> the date of occupancy, unless C,ender otherwise agrees in writing, whinc �onsent shall not be unreasonably withheld, or unlcss
<br /> extenuating circumstances CXISI which are beyond Bc�rrower's control. Borrower shall not destroy, damage or impair the
<br /> Property, allow thc Praperty to deterioratc, ar commit waste on the Property. Borrpwer shall he in dcfault iC any fprfciture
<br /> actio❑ or prcaceeding, whether c.ivil or c.riminal, is begun that in [..Ender's good faith judgment could result in forfeiture of the
<br /> Property or othcrwise materially impair t:he lien created by this Security Instrument or Lender's security interest, 8orrower may
<br /> cure such a default xnd reinstate, as provided in paragraph 18, b� czusing the action ar proceeding to be dismissed with a ruling
<br /> that, in Lendcr's good faith determination, precludes forfeiture of the Bocrower's intcrest in th:: 4rc?per.y or other material
<br /> impairment pf the lien created by this Security Tnc��ment or Lender's security interest. Bcarrower shal� also be in defaulr. if
<br /> Borrower, durin�thc loan application pra�cess, gave materially false or inaccurate inFormation or statentents to l.ender(or failed
<br /> to provide Lender wiih any material infnrmation) in connection with the lpan evidenced by the Notc, including, but r�ot limited
<br /> tci, representations concerning Borrower's nc�upancy of the Property as a principal rc°�A^^c�, i�this Security i�i;trui���nt is un a
<br /> leasehold, Rorrowcr shail comply with al) the provisions of the lease. If �3orrower acquires fee title to thc Prnperty, the
<br /> lcasehold and the fee title shall not merge unless T_.ender agrees to the merger in writing.
<br /> 7. �rotection of Lender's �tights in the Property. If Borrawer fails to perfortn the covenants and agreemcnts conlained in
<br /> this Security Instrument, or there is a legal procee.�ling that may signi�cantly affcct L,endcr's rights in the Property (such as a
<br /> proeeedin� in bankruptcy, probate, for condemnation or forfeiture ar to cnfor�e laws or regulations), then Lcnder m�y do and
<br /> pay for whatever is necessary to protect the value of the Property and C.ender's rights in the Property. Lcnder°s actions may
<br /> include pay�ing any sums • • �red by a lien which h.a.c priority over this Securiry instrument, ap��ring in court, paying
<br /> rcasonable attorneys' fees �. .��tering on the Property ta make repairs. Althaugh L.endcr may take action undcr this para�raph
<br /> 7, L,encler does not have to dn so.
<br /> Any amounts disbursed by C.endcr under this pAragraph 7 shall bccomc additional dcbt pf F3orro�ver sccurcd hy this
<br /> 5ccurity I.nstrument. Unless t3orrnwer and [.,cnder agree to other ter�ns of payment, these amounts shall bear interest frorn thc
<br /> date of disbursernent at the Note rate and shall be payable, with intcrest, upon notice from L.ender to Borrower reque,ting
<br /> paymcnt.
<br /> S. Mort�;aRe Insurance. If Lender required mnrtgagc insurance as a condition of makins the loan secured by this Security
<br /> Instrument, Borrower shall pay thc premiums required to maintain the mortgage insurance in effect. If, for any reason, the
<br /> mort�;age insurance coverage required by L.cnder lapses or ceases to be in effccC, $orrower shall pay the prcmiums reyuired to
<br /> obtain ccrverage substantially equivaient to the m��rtgage insurance previously in effect, at a cost substantially equivalent to thc
<br /> cost to Borrower of the mortga�e insurance previously in effect, from an alternate mortgage insurer apprnved by 1.endcr. If
<br /> substantially equivalent roort�a�c insurance coverage is not available, Borrowcr shall pay to L,endcr each month a sum equal to
<br /> one-twelfth of the ycarly mortgage insurance prcmium bcing paid by $orrower whcn lhe insurance cc�vcragc lapsed or ceased to
<br /> be in effect. (�nder wil] accept, use and retain thcsr payments as a loss rescrve in licu of mortsaGe ins�irance. Loss reserve
<br /> Fwm 302A �/90
<br /> . � Ppe�of B �
<br /> MC-3p19-NE/3
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