|
�O10U�41�
<br />providcd that such inspcction shal] bc undcrtakcn promptly. Lender may disbursc proceeds for the repairs and
<br />restoration in a singlc payment or in a series of progress payments as thc work is complcted. Unless an agreemcnt
<br />is madc in writing or Applicable Law requires intcrest to be paid on such insuranec proceeds, Lender shall not bc
<br />requircd to pay Sorrower any interest or earnings on such proceeds. Fees for public adjustcrs, or other third partics,
<br />retaincd by Borrower shall not bc paid out of thc insurance proceeds and shall be thc sole obligation of Borrowcr.
<br />If thc restoration or repair is not economically fcasible or Lender' s security would bc lcssened, the insurance procceds
<br />shall he applied to the sums secured by this Security Instrumcnt, whcthcr or not then due, with thc cxcess, if any, paid
<br />to Borrower. Such insurance proceeds shall he applicd in thc ordcr providcd for in Section 2.
<br />If Borrower abandons the Prvperty, Lender may Filc, negotiatc and settle any available insurance claim and
<br />related matters. IF Borrower does not respond within 30 days to a noticc from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may negotiate and settle the claim, The 30-day perind will begin whcn the
<br />notice is given. ln either cvcnt, or if Lcndcr acquixes the Property under Section 22 or otherwise, Borrowcn c�rcby
<br />assigns to Lendcr (a) Borrower's rights to any insurancc procceds in an amount not co cxcccd the amounts unpaid
<br />undcr the Notc or this Security Instrument, and (b) any othcr of Borrowcr' s rights (other than thc right to any refund
<br />of unearned premiums paid by Borrower) under all insurance policics covering the Property, insofar as such rights
<br />are applicable to the coverage of the Property. Lender may use the insurance prnceeds either to repair or restore the
<br />Property or to pay amounts unpaid undcr the Note or this Security Instrument, whether or not then due.
<br />6. Occapancy. Borrowcr shall occupy, establish, and use the Property as Borrower's principal residencc
<br />within 60 days after the execution of this Security Instrument and shal I continue to occupy the Properry as Borrowcr' s
<br />principal residencc for at ]cast one yeaz after the datc of occupancy, unless Lcndcr othcrwisc agrccs in writing, which
<br />consent shall not he unreasonably withhcld, or unless extenuating circumstances exist which are beyond Borrowcr's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspectlons. Borrowcr shall not destroy,
<br />damage or impair thc Property, allow the Property to dctcrioratc or commit waste on the Property. Whether or not
<br />Borrower is residing in the Property, Borrower shall maintain thc Property in order w prevent lhe Properry from
<br />deteriorating or dccreasing in value due to its condition. Unlcss it is determined pursuant to Scction 5 that repair or
<br />restoration is not cconomically feasible, Borrower shall promptly rcpair 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 purpnses. Lender may disburse proceeds for the repairs and restoration in a single payment or in
<br />a series nf progress payments as the work is completed, if the insurance or enndemnation proceeds are not suff'icient
<br />to repair or restore the Property, Borrowcr is not relieved of T3orrower's obligation for the completion of such rcpair
<br />or restoration.
<br />Lcndcr or its agent may makc rcasonablc cntrics upon and inspections of thc Property. If it has reasonahle cause,
<br />Lender may inspect the interior of thc improvcmcnts on the Property. Lender shall givc Borrower notice at the umc
<br />of or prior to such an interior inspcction specifying such reasonable cause.
<br />8. Horrower's Loan Application. Borrower shall be in default if, during the Loan applicatinn proccss,
<br />Borrower or any persons or cntitics acting at thc dircction of Borrower or with Borrowcr' s knowlcdge or consent gave
<br />materially falsc, misleading, or inaccuratc information or statements to Lcndcr (or failcd to provide Lender with
<br />materia] information) in conncction with thc Loan. Material representations includc, but are not limited to,
<br />rcprescntations conccrning Borrower's occupancy of thc Property as Borrowcr's principal residcncc.
<br />9. Protection of Lender's Interest in the Property and Rights Under this 5ecurity Instrument. If (a)
<br />Borrowcr fails to perform the covenants and agreements contained in this Security Instrument, (b) thcrc is a legal
<br />procccding that might significantly affect Lender' s intcrest in thc Property and/or rights undcr this Sccurity ]nstrument
<br />(such as a procccding in bankruptcy, probate, £or condcmnauon or forfciturc, for enforcement of a licn which may
<br />auain priority ovcr this Security Instrument or to cnforec ]aws or rcgulations), or (c) Borrower has abandoned the
<br />Property, then Lcnder may do and pay for whatcvcr is rcasonablc or appropriate w prutect Lender's interest in the
<br />Property and rights undcr this Security Instrument, including protccting and/or assessing lhc valuc of the Property,
<br />and securing and/or repairin� the Property. Lender' s actions can include, but are not limited to: (a) paying any sums
<br />secured hy a lien which has priority over this Security instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees w prvtect its interest in the Property and/or rights under this Security Instrument, including its secured
<br />position in a 6ankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make repairs, change locks, replacc or board up doors and windows, drain water from pipes, eliminate huilding or
<br />othcr codc violations or dangcrous conditions, and havc utilitics turncd on or off. Although Lcndcr may take action
<br />undcr this Scction 9, Lcndcr docs not have w do so and is not undcr any duty or obligation to do so. It is agreed that
<br />Lcndcr incurs no ]iability for not taking any or all actions authorizcd undcr this Sccuon 9.
<br />Any amounts disbursed by Lcndcr undcr this Section 9 shall bccomc additional debt oF Borrowcr secured by this
<br />Securiry Instrument. Thcsc amounts shal] beaz intcrest at the Notc rate from thc date of disburscment and shall 6c
<br />payable, with such inlerest, upon notice from Lender w Borrower rcqucsting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of thc ]ease.
<br />Borrower shall nut surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lcase.
<br />Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrowcr
<br />acquires fee title to the Property, thc ]caschold and the fee title shall not mergc unless Lender agrees to the merger
<br />in writing.
<br />10. Mortgage Insurance. If Lender reyuired Mortgage Insurancc as a conditivn of making the Loan, Borrower
<br />shall pay the prcmiums required to maintain the Mortgage Insurance in effect. if, for any reason, thc Mortgage
<br />Insurance coveragc required by Lender ceases to be available From the mortgage insurer that previously providcd such
<br />NEBRP.SKA--Single Family--Fannia MaBlFreddie Mac LINI�ORM INSTRUMENT - MERS UpgM9giC �rNP� 800-6dB4382
<br />Form 3o28 1101 Page 5 of 11 www.docmagk.com
<br />� .� r
<br />��_��
<br />
|