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<br />Borrower shall promptly discharge any lien which has priority over this Security lnstrument unless Borrower: ,a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)
<br />contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in e
<br />Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien �n
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that a�y
<br />part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may gi?✓e
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth
<br />above within 10 days of the giving of notice.
<br />Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on t�e
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazarc�s,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in t�e
<br />amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by
<br />Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to main
<br />coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in t�e
<br />Properly in accordance with section titled Protection of Lender's Rights in the Property. I,
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clau e.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give o
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt noti�e
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Bonower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration Pr
<br />repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is x}ot
<br />lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, tl�e
<br />insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />any excess paid to Borrower: If Borrower abandons the Properiy, or does not answer within the number of days
<br />prescribed by Applicable Law as set forth in a notice from Lender to Borrower that the insurance carrier s
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair�r
<br />restore the Properiy or to pay sums secured by this Security Instrument, whether or not then due. The penod f
<br />time for Borrower to answer as set forth in the notice will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not exte�d
<br />or postpone the due date of the payments due under the Contract or change the amount of the payments. If und�r
<br />the section titled Acceleration; Remedies, the Property is acquired by Lender, Bonower's right to any insuran�e
<br />policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to e
<br />extent of the sums secured by this Security Instrument immediately prior to the acquisition. �
<br />Preservarion, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholc}s.
<br />Borrower shall not destroy, damage or impair the Properiy, allow the Property to deteriorate, or commit waste Qn
<br />the Properly. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begpn
<br />that in Lender's good faith judgtnent could result in forfeiture of the Properly or otherwise materially impair t�e
<br />lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and
<br />reinstate, as provided in section titled Borrower's Right to Reinstate, by causing the action or proceeding to be
<br />dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest 4�
<br />the Property or other material impairment of the lien created by this Security Instrument or Lender's secunTy
<br />interest. Bonower shall also be in default if Borrower, during the loan application process, gave materially false r
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material information) �n
<br />connection with the loan evidenced by the Contract. If this Security Instiument is on a leasehold, Borrower sh�11
<br />comply with all the provisions of the lease. If Bonower acquires fee title to the Property, the leasehold and the fge
<br />title shall not merge unless Lender agrees to the merger in writing.
<br />Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreemex}ts
<br />contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights �1n
<br />the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws pr
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property apd
<br />Lender's rights in the Property. Lender's actions may include paying any swns secured by a lien which has priori�ty
<br />over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property ito
<br />make repairs. Although Lender may take action under this section, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this section shall become additional debt of Bonower secured by �
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall b
<br />interest from the date of disbursement at the same rate assessed on advances under the Contract and shall
<br />payable, with interest, upon notice from Lender to Bonower requesting payment.
<br />Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender ;
<br />give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />condemnation or other taking of any part of the Properly, or for conveyance in lieu of condemnation, are he�
<br />assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Secu
<br />Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of
<br />Property in which the fair market value of the Property immediately before the taking is equal to or greater f
<br />O 2004-2011 Compliance Systems, Inc. ADCD-AECO - 2010L1.15.461
<br />Consumer Real Estate - Security InsWment DL2036 Page 2 of 5 www.comoliauceseat�
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