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<br />aze 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 urtpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Qccupanry. 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, Mafntenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or Corllrnlt waste on tlae 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. Uzxless it is determined pursuant to Section S that repair or
<br />restararian is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further
<br />deterioration or damage. If insurance ox condemnation proceeds aze 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 restaration in a single payment or in
<br />a series of progress payments as the work is completed. If the insurance or condemnation proceeds are opt 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 />Louder 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 an the Property. Lender shall give Borrower notice at the tixzte
<br />of or print to such an interior inspection specifying such reasonable cause.
<br />S. Borrower's Loatr Application. Borrower shall be in default if, during the Lean application process,
<br />Borrower or any persons or entities acting at the direction of Borrower ar with Borrower's knowledge or consent gave
<br />materially false, misleading, ar inaccurate information or statements to Lender (or failed to provide Lender with
<br />material information} i~o. cormeetion with the Loan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Ltterest 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 tin the Property and/ar rights under this Security Instrument
<br />(such as a proce~ing in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may
<br />attain priority over this Security Instrument ar 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 to protect its interest inthePropertyand/or rights under this Security Instrutent, including its secured
<br />position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make repairs, change locks, replace or board up doors and windows, drain water from pipes, elirrainate building or
<br />other code violations or dangerous conditions, and have utilities twined om or off. Although Lender xnay take action
<br />under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that
<br />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 secured by this
<br />Security h75trument. These amounts shall bear interest at the Nnte 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 eat, without the express written consent of Lender, alter ar 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 />iixx writing.
<br />] 0. 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 ixx effect. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available froze the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage
<br />Insurance, Harrower 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, fz~oxxn 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 coverage 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 />notwitbstandingtbe 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 />coverage (in the amount and for the period that Lender requires} provided by an insurer selected by Lender again
<br />becomes available, is obtained, and Lender requires separately designated payments toward the premiums far
<br />Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Burrower was
<br />required to make separately designated paynneztts toward the premiums far Mortgage Insurance, Borrower shall pay
<br />the premiums required to maintain Mortgage Insurance in effect, ar 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 />NE6RA5KA--5in01e Family--Fannie Mae/Freddle Mac UNIFORM INSTRUMENT ADCMag1G 800649-1362
<br />Form 3028 1/01 Page 5 of 11 www.dacmegic-corn
<br />Ne3D28.doGUri
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