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<br /> S. Hu•r.ard or Prope:rty Instirnnce. IIorrower shall kecp thc improvcments naw cxisting or lierenfter crected on thc
<br /> Propeny insured against loss by fire, hu•r.ards included within the term "extended coveruge" and iiny nther huzarJs, including
<br /> (IoodS or Flaodins, for which(.cnJer requires insurimce. This insurnnce shull bc muintnincd in the amounts und f�r the periais
<br /> that l.ender reNuires. The insurance cnrrier pravidiiig the insur►nre shull bc rhosen hy Iiorr�iwer subject to Lender's npprovul
<br /> which shall nut be unreationahly witlihcld. lf liannwer lails to mnintnin rnvcruge describrd ubovc, l�:nder muy, u� [.cndcr'ti ,
<br /> aption,obinin covcri�gc tu prntcct l.c�idcr's right5 in thc Pra�crty in nccordunrc+vilh p:+rngr,ipl� 7.
<br /> All insuruncc polirics nnd rencw;d� slicdl bc ncccpinblc to LAndcr und tih,ill inrludc u �tmidard murtgogr rluu�c. I.endcr
<br /> shnl l havc thc right lii hald Qic policics nnd rencwids. (f l.cndcr rcquires,tl�n•ruwcr sh.dl pr�+mpdy�ivc tu I.cndcr nll rccciptx of
<br /> pii�t premium.ansl rencwu0 nuticc�. In dtc cvcnt of I��sti. Dornnvcr shnll glvc prumpl o�u�icc tu thc insw•imcc carricr unJ[.cndcr,
<br /> l.e�idcr inay makc pr�H�f i►P I«ss ii'ncit madc promptly by 8orrv»vcr.
<br /> Unirss l.cndcr+►nd 13c�rrowcr othcrwisc ugr�r in�vriting. insuruncc praccedti shnU bc npplicd tc� rc.torutiuu ur rcpair of thc
<br /> Pro�cny d�unugcJ, if thc�•cstoriiUon nr repair is cconomici►Ily fcasiblc und l.cndcr's sccurfty is m�t Irssened. If U�c restorntiun or
<br /> rpair is not cconouiicidly fcasiblc or Lcndcr's kccurity would bc Icssencd, thc insuruouc procccds sliall bc applicd to thc sums
<br /> sxured by this Security instrument, whethcr or noc lhen dua, with uny c:xcess paiJ to Qorrower. If Borrawcr ubandons thc
<br /> Aropeny. or docs nat nnswcr within 3Q days a natice from i..endcr thut thc insurance c;irrier has offcrcd to sctde n claim, thcn
<br /> Lender may collect the insumnce prucceds. Lender may use the procceds to repair or restore the Property or to pay sums
<br /> secesrcd by this Secariry InstNmcnt, whcther or not thcn due. 'Phc 30-duy perioci will begin�vhen die notice is given.
<br /> Unless Lender and Bormwer otherwise agree in writing, any application of proceats to principal shall not extend or
<br /> p�stponc thc due date af tho monthly payments referred to in parAgraphs 1 and 2 or change the nmount of the payments. If
<br /> wider paragraph 21 ehe l'roperty is acquire�l by I.endcr, Horrower's right to any insurnnce policics and proceeds resulting from
<br /> damage to the Property prior to the acquisttion shuU pass to Lender to the extent of the sums secured by this Security Instrument
<br /> immediately prior to the acquisieion.
<br /> b,Oocupancy,1.'reservatton,Maintenance and Protection of the Property;Borrower's E�oati Appltcallon;l.eesehm9clv.
<br /> Dorrower shali occupy,establish,nnd use the Property as Bonowey's principal residence within sixty days after the execution of
<br /> this Security Inst�urnent and shall continue to occupy die Property as Borrower's principal residence for at lea.st one yenr ufter
<br /> the date of occupancy,unless Lender othcrwise agrees i�writing, which consent shall not be unreasonably�vithheld,or unless
<br /> extenuating circumstances exist which are beyond Borrower's contml. Borrower shall noi clestray, clamage or impuir the
<br /> Prc�nertv. nllow the Propertv to deteriarate, or commit wuste on the Property. Borr�wcr st��!!be in default if any forfeiture
<br /> action or proceeding,whether civil or criminn�, is begun that in L.ender's good faith judg�nent could result in forfeiture of the
<br /> Property or otherwise mnterially impair the lien crcated by this Security Instrument or Lender's se�urity interest.Borrower may
<br /> cure such a defuult and reinstnte.as provided in pa��agraph 18,by causing the action or proceeding to be dismissed with a ruling
<br /> that, in Lender's good faith detcrminntion, precludes forfeiture of the Borrower's inte�st in the Property or other material
<br /> impairment of the lien created by this Security Instrument or Lcnder's security interest. Borrower shall alsu be in default if
<br /> Bocrower,d�ring the loun application process,gave muterially falso ar inacc.urate information or stntements to I.ender(or failo3
<br /> ; to provide Lender with any material information)in connection with the loan evidenced by the Note.including,but not limited
<br /> ' to. representations concerning Bonower's occupancy of the Property us a principal residencc. lf this Security Instrument is on a
<br /> leasehold, Horrower shall mmPly with all the provisions of the lease. If Borrower acqutres fee title to the Propeny, the
<br /> leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lender's Rlghts in the Property.If Borcower fails to perform the covecinnts and agreements contained in
<br /> this Security Instrument. or there is u legal proceeding that may significuntly affect Lender's tights in the Property(such us a
<br /> procceding in bmikn►ptcy. probate, for condemnation o�forfeiture or to cnforce laws or resulutiuns), then Lender may do and =
<br /> pay for whatever is necessary to pratcct the value af the Property and Lender's rights in the Property. Lendcr's actions may
<br /> include payln� any sums sec�ued by o lien which has priorlty over this Security Instrument, appearing in court, paying
<br /> reasonable attorneys'fees and entering on the Property to msilce repai�s.Although Lender muy take action under this paragraph
<br /> 7, Lender does not tinve to do so.
<br /> Any amounts disburscd by L.endor under this paragraph 7 shall become ndditional debt of Borrower secured by this
<br /> Security Instrument. Unless Bonower and Lender agree to othcr tcrms of paymcnt. these amounts shull bear interest fro�n thc
<br /> dnte of disbursement at ehe Note r�ta and shatl be payable, with interest, upon notice frorn i.ender ta Bonower requesting
<br /> payment.
<br /> 8. Murtgage Insurance.If Lender rcquired mortgage insurance as a condit+on of making the loan secured by this Security
<br /> Instrutnent, Borrower shall pay the premiums requimd to muintain the mongage iaasumncc in effect. If, for any reason, the
<br /> mongage insurance cAVerage required by Lender lapses or ceases to be in effect,Borrow�r shall pay the premiums require�to -
<br /> obtain coverage substantially equivsilent tn the mortguge insurance previously in effect, at u eost substantially equivalent to the
<br /> mst to Bonower of the mortgage insurnnce prcviously in effeci, from an �lternate mortgagc Insu»er approvcxl by [.ender. If
<br /> substantially ecRuivalent mortgage insurance caverage is not available. Borrower shull pay to Lender eacn month a sum equal to
<br /> one-twclfth of the ye:srly mortgage insurf►nce premium being�:aid by Borrow•er wl�en the insurance coverage lapsed or ce.�sed to
<br /> be in effect. Lender will accept, usE and retnin these payments as ci loss mserve in lieu aF mortgage insura�ue. I.oss reserve
<br /> Form 3028 8f90
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