•�,
<br /> ��-�Cr25'?'0
<br /> 5.Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, hazards included within the teim "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance.This insurance shall be maintained in the amo�u►ts and for the periods that Lender
<br /> requites.The insurance carrier providing the ins�rance shall be chosen by Borrower subje�t to Lender's approval which shall not
<br /> • be unreasonably withheld. If Borrower fails to maintain coverage described above, L.ender may, at Lender's option, obtain
<br /> coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall
<br /> have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br /> premiums and renewal notices.In the event of loss,Borrowea shall give prompt notice to the insurance carrier and Lender.Lender
<br /> may make proof of loss if not made prompdy by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br /> Property damaged, if the restoradon or repair is economically feasible and Lender's security is not lessened. If the restoradon or
<br /> repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br /> secured by this Secnrity Inswment, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance cazrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds.Lender may use the proceeds to repair or restore the PropeRy or to pay sums secured
<br /> by this Se�urity Instrument,whether or not then due.The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing,any application of procceds co principal shall not eztend or postpone
<br /> the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments.If under paragraph
<br /> 21 the Property is acqnired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the
<br /> Property prior to the acquisidon shall pass to Lender W the eztent of the sums secured by this Security Instrument immediately
<br /> prior to the acquisidon.
<br /> 6.Occupancy,Preservation,Maintenance and Protection of the Property; Borrower's Loan AppHcation;Leasehotds.
<br /> Borrower shall occupy, establish, and use the Property as Borrower's principal residence within s'vcty days after the execudon of
<br /> this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the
<br /> date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Borrower's control.Borrower shall not destroy,damage or impair the Property,
<br /> allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture acdon or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or
<br /> otherwise materially impair the lien created by this Security Instrument or Lender's security interes� Borrower may cure such a
<br /> default and reinstate, as provided in paragraph 18, by causing ihe acdon or proceeding to be dismissed with a ruling that, in
<br /> Lender's good faith determination,precludes forfeiture of the Borrower's interest in the Property or other material impaiiment of
<br /> the lien created by this Security Instrument or Lender's security interesL Borrower shall also be in default if Borrower,during the
<br /> loan application process,gave materially false or inaccurate information or statements to Lender(or failed to provide Lender with
<br /> any material informadon) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br /> concerning Borrower's occupancy of the Property as a principal residence.If this Security Instrument is on a leasehold,Borrower
<br /> shall comply with all the provisions of the lease. If Borrower acquires fee tide to the Property,the leasehold and the fee title shall
<br /> not merge unless L.ender agrees to the merger in writing.
<br /> 7.Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in
<br /> this Security Inswment, or there is a legal proceeding that may significanfly affect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy,probate,for condemnadon or forfeiture or to enforce laws or regulations),then Lender may do and pay
<br /> for whatever is necessary to protect the value of the Property and.Lender's rights in the Property. Lender's actions may include
<br /> paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable �
<br /> attorneys' fees and entering on the Property to make repairs. Although Lender may take acdon under this paragraph 7, I,ender
<br /> does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br /> Instrument. Unless Bonower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
<br /> disbursement at the Note rate and shall be payable,with interest,upon notice from Lender to Borrower requesting payment
<br /> 8.Mortgage Insurance. If L,ender required mortgage insurance as a condition of making the loan secured by this Seciuity
<br /> Inswment, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br /> substantially equivalent mortgage insurance coverage is not available, Bonower shall pay to Lender each month a sum equal to
<br /> one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to
<br /> be in effect I.ender will accept, use and retain these payments as a•loss reserve in lieu of mortgage insurance. Loss reserve
<br /> �-6R(NE)�e2�2�.oi Form 3028 9/90
<br /> Page 3 of 8
<br /> Initlsls:
<br /> � F »:,; �. � t
<br />
|