|
201008b46
<br />detennination ox certifcation. Borrower shall also be res�onsible for the payment of any fees imposed by tlie Federal
<br />EznergencyManagement Agencyin connection with the re�new ofany flood zone deternaination resulting from an objection
<br />by Borrower.
<br />If Borrower fails to maintain eny of the covexages described above, Lender rnay obtain insurance coverage, at
<br />Lexidex's option and Sozrower's expet�se. Lender is under no obligation to purchase any particular type or amount �f
<br />cpvcrage. Therefore, such coverage shall cover Lender, but might or riught nat protect Borrawer, Borrrovver's cquity in the
<br />Property, or the contents of the Property, against any risk, hazard or liability a,nd rnight provide greater or lesser coverage
<br />than was previously in e$ect. Barrawer acknowlcdges that the cost ofthc insurance caverage so obtained might si�i�ican�tly
<br />exceed the cost of insurance that Barcawer could have dbtained. Any arnounts disbursed by z.ender under this Sectton 5 sha11
<br />become additional debt ofBonower secuxed by this Security Instrument. These arnounts shall bear interest at the Note rate
<br />from the date of disbursernent and shall be payable, with such interest, upon notice from I.ender to Borrovver requcsting
<br />payment.
<br />All insuranca pnlicies rcquired by �.ender and ren�wals of such policios sha11 be subject to Lender's right to
<br />disa��rove such policies, shall include a stat�dard mortgage clause, and shall narne Ler►der as xnortgagee and/or as an
<br />addihonal loss payee. Lender shall have the ri�ht to hnld the policies and renewal certifcates. IfLender requires Borcower
<br />shall promptly give to Lender all reccipts ofpa�d prerniums and renewal notices. TfBonrower obtains an� form, o�insurance
<br />coverage, not otherwise required by Lender, for damage to, or destruction o� the Property, such policy shall include a
<br />standard martgage clause and shall name I.ender as martgagee and/or as an additional loss payee.
<br />In the event af lass, Borrower shall give prompt nohce to the insurance carrier and Lender. Lender mayznake proof
<br />ofloss ifnot made promptlybyBonower. i7nless T�emder and Borrower otherwise agree in wcilang, anyinsucanceproc�eds,
<br />whether or not the underl}nng msurance was required by Lender, shall be applied to restoration ox repair ofthe Property, if
<br />the restoration or repair is economically feasible and Y.ender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right ta hald such insurance proceeds until Lendex has had an opportunxty to inspect such
<br />Praerty to ensure the work has been completed to I,ender's satisfaction, provided that such inspection shall be undertaken
<br />prompt�y. �.eender rna�+ disburse proceeds for the repairs and restoration in a single payment oz in a series of progress
<br />payments as the worlc is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid
<br />on such insurance proceeds, Lender shall not be xequired to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other thixd par�ies, retnined by Sorrower shall nat be paid out af the insurrance proceeds a�nd shall be
<br />the sole obligation of Borrower. If the restoration or reparr is not econamically feasiblo ar Z.ender's security would be
<br />lessened, the insurance proceeds siaall be applied to the sums secured by this Securit�+Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied xn thc axdex provided for in Section 2.
<br />IfBorrower abandons the Property, �.ender may file, negotiate and settle any available insura,nce claim and related
<br />matters. If Borrower does not respond within 3 Q days to a nohce frorn Lender that the insurance oarrier has offered to settle a
<br />claim, then Lender may negotiate and settle the clairn. The 30-day period will begin when the notice is given. In either
<br />event, or ifLender acquires the Propertyunder Section 22 or otherwise, Borrower herebyassigns to Lender (a) Sorrovver's
<br />rights to any insurance proceeds in an amount nat to exceed the amounts unpaid undcr the Note or this Secunty Insirument,
<br />and (b) any other of Borrower's rights (other than the xight to any retund of unearned premiums paid by Borrower) under all
<br />insurance policies covering the Property, insofar as such rights are applicable to the coverage ofthe Property. Lender may
<br />use the insurance pmceeds either to repalr or restore the Praperty or to pay amounts unpaid under t1�,e Note or this Secuzity
<br />Instrumen� whether ar not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
<br />60 days after the execution of tlris Secunty Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year a�}er the date
<br />of occupancy� unless T�ender otherwise agrees in wniting, which consent shall not be unreasonably withheld, or unless
<br />extenuahng cxrcurnstances exist which aro beyond Borrower's control.
<br />'1. Preservation, Mafntenance and Protection of the �roperty; Ynspectlon�. Borrower shall not destrpy,
<br />damage or impair the Property, allow the Prdpsrty to detcsriorate or carnmrt waste
<br />on the Property. Whether or not Borrower is residing in the Property, Borrowcr shall maintain the Prope�y in oxder to
<br />prevent the Property from deteriorating or decreasing in value due to rts condition. Unless it is deternuned pursuant to
<br />Section S that repair or restoration is not econoxnically feasible, Borrower shall promptly rcpair the Property ifdamaged to
<br />avoid furkher deterioration or damage. Ifinsurance or condemnation proceeds are paid in connection with dannage to, or the
<br />talang o� the Property, Borrower shall be responsible for repairing or rest4ning the Property only if Lender has released
<br />proceeds for su�h purposes. Lender may disbursc proceeds for the repairs and restaration in a sxngle payment or in a saries
<br />of progress payrnents as the vcrork is campleted. If the insurance or condernnation proceeds are not suffic�ent to repair or
<br />xestore the Property, Borrowex is not relieved of Borrower's obligation �or the completion of such repair or restoration.
<br />Lender or �ts a�ent rnay naake reasonable entries upon and inspections ofthe Property. Tfit has reasonable cause,
<br />Lender may inspect the �nterior of the improvements on the Pmperiy. I,ender shall give Borrower notice at the time of or
<br />pxior to such an interior inspection specifying such reasonable cause.
<br />8. Borrovver's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities actin� at the direction of Borrower or with Borrower's lrnowtedge or consent gave
<br />materially false, misleading, or inaccuxate information or statemcnts to Lender (or failed to provide Lender with material
<br />informahon) in connection vhth the Loan. Material representations include, but are not limited ta, representations concerning
<br />Bvrrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protectaon af Lender's Interest in the Property and Rights Under this Securi Instrurnent. If
<br />(a) Borrower fails to perform the covenants and agreements contamed in this 5ecurity �nstrument, there is a legal
<br />proceeding that might significantly affect I.ender's interest in the Pr and/or rights under this SecuntyZnstrument (such
<br />as a proccedmg in banlQUptcy, probate, fnr condemnation or forfeitu�r enfarcement of a lien which may attain pnarity
<br />over this Secunty Instrument or to enforce laws or regulations), or (c) Borrower has abandoned tha �roperty then I,,ender
<br />may do and pay �or whatever is reasonable or apprapriate w pmtect �,ender's interest in the Property and ng�its under this
<br />Security Instrument, including �rotecting and/or assessing the value of the Property, and securing and/or repairing the
<br />Property. Lender's actions can include, but aro not limited to: (a) paying any sums secured by a lien which has pnorit� over
<br />this Security Instrumcnt; (b) a�pearin� in court; and (c) pay�n� reasonable attorneys' fees to protect its interest in the
<br />Property and/or rights under this Secunty Instrument, includmg �ts secured position in a banlauptcyprpceeding. Sccuring
<br />the Property includes, but is not limited to, enterin� the Property to make re�airs, change locks, replace or board up doors
<br />and windows, drain water fram pipes, elirninate building or other cade violations or dangerqus conditions, and have utilities
<br />turned an or off. Although Lender may take aciion under this Section 9, Lender does not havd to do so and is not under any
<br />duty or abligation to do so. It is a�reed that Lendcr incurs no liability for not taldng any or all actions authorizcd under this
<br />Section 9.
<br />Any amounts disbursed by T.ender under this Section 9 shall beoome additional debt ofBarrower secuured by this
<br />Security Instrumen� These amounts shall bear interest at the Note rate from the date ofdisbuxsement and shall be payable,
<br />with such interest, upon noiice from T,,ender to Borrower requesting pay�nent
<br />Jfthis Sccurity Instrument is on a leasehold, Brnrower shall complyw�ith all the provisions ofthe lease. IfBorrower
<br />acquires fee title to the Property, the leasehold and the fee title sha11 not merge unless I.ender agrees to the merger in writin
<br />lp. Mortga�e Insurance. If Lender required Mortgage Insurance as a condit�on of making thc L,oan
<br />Borrower shall pay the prrsmiums requirad to maintain the Mortgage Insurax►ce in effec� I� for any xeason, the Mortgagc
<br />Insuran,ce coverage requ�red by Lendcr ceases to be available frorn the moregage insurer that previously provided such
<br />NESTiA,RI{A�ingle Pamily--Fxnnie 1VIae/Freddie TVIac i7NIFpRM ]NgTBjj1V[ENT
<br />12434.Cv (1/08) 20006858
<br />(A�ERS) P'orm 3028 1/Ol (page 4 of8pagts)
<br />Creative Thinkinp Ina
<br />G011D(OODbe30�
<br />�� ��/
<br />
|