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Doe ID #: xxxxxxxxx647
<br />mortgagee and/or as an additional loss payee, and Borrower further agrees to generally assign rights to insurance proceeds to
<br />the holder of the Note up to the amount of the outstanding loan balance. Lender will have the right to hold the policies and
<br />renewal certificates. If Lender requires, Borrower will promptly give to Lender proof of paid premiums and renewal notices. If
<br />Borrower obtains any form of insurance coverage, not otherwise required,by Lender, for damage to, or destruction of, the
<br />Property, such policy must include a standard mortgage clause and must name Lender as mortgagee and/or as an additional loss
<br />payee, and Borrower ftirther agrees to generally assign rights to insurance proceeds to the holder of the Note up to the amount
<br />of the outstanding loan balance.
<br />(d) Proof of Loss; Application of Proceeds. In the event of loss, Borrower must give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Any insurance proceeds, whether or not
<br />the underlying insurance was required by Lender, will be applied to restoration or repair of the Property, if Lender deems the
<br />restoration or repair to be economically feasible and determines that Lender's security will not be lessened by such restoration
<br />or repair.
<br />If the Property is to be repaired or restored, Lender will disburse from the insurance proceeds any initial amounts that
<br />are necessary to begin the repair or restoration, subject to any restrictions applicable to Lender. During the subsequent repair
<br />and restoration period, Lender will have the right to hold such insurance proceeds until Lender has had an opportunity to
<br />inspect such Property to ensure the work has been completed to Lender's satisfaction (which may include satisfying Lender's
<br />minimum eligibility requirements for persons repairing the Property, including, but not limited to, licensing, bond, and
<br />insurance requirements) provided that such inspection must be undertaken promptly. Lender may disburse proceeds for the
<br />repairs and restoration in a single payment or in a series of progress payments as the work is completed, depending on the size
<br />of the repair or restoration, the terms of the repair agreement, and whether Borrower is in Default on the Loan. Lender may
<br />make such disbursements directly to Borrower, to the person repairing or restoring the Property, or payable jointly to both.
<br />Lender will not be required to pay Borrower any interest or earnings on such insurance proceeds unless Lender and Borrower
<br />agree in writing or Applicable Law requires otherwise. Fees for public adjusters, or other third parties, retained by Borrower
<br />will not be paid out of the insurance proceeds and will be the sole obligation of Borrower.
<br />If, in accordance with Applicable Law, Lender deems the restoration or repair not to be economically feasible or
<br />Lender's security would be lessened by such restoration or repair, the insurance proceeds will be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds will be
<br />applied in the order that Partial Payments are applied in Section 2(b).
<br />(e) Insurance Settlements; Assignment of Proceeds. If Borrower abandons the Property, Lender may file, negotiate,
<br />and settle any available insurance claim and related matters, If Borrower does not respond within 30 days to a notice front
<br />Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30 -day
<br />period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 26 or otherwise,
<br />Borrower is unconditionally assigning to Lender (i) Borrower's rights to any insurance proceeds in an amount not to exceed the
<br />amounts unpaid under the Note and this Security Instrument, and (ii) any other of Borrower's rights (other than the right to any
<br />refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, to the extent that such
<br />rights are applicable to the coverage of the Property, If Lender files, negotiates, or settles a claim, Borrower agrees that any
<br />insurance proceeds may be made payable directly to Lender without the need to include Borrower as an additional loss payee.
<br />Lender may use the insurance proceeds either to repair or restore the Property (as provided in Section 5(d)) or to pay amounts
<br />unpaid under the Note or this Security Instrument, whether or not their due, in accordance with Applicable Law,
<br />6. Occupancy. Borrower must occupy, establish, and use the Property as Borrower's principal residence within 60
<br />days after the execution of this Security Instrument and must continue to occupy the Property as Borrower's principal residence
<br />for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent will not be
<br />unreasonably withheld, or unless extenuating circumstances exist that are beyond Borrower's control.
<br />7. Preservation, Maintenance, and Protection of the Property; Inspections. Borrower will not destroy, damage, or
<br />impair the Property, allow the Property to deteriorate, or commit waste on the Property. Whether or not Borrower is residing in
<br />the Property, Borrower must maintain the Property in order to prevent the Property from deteriorating or decreasing in value
<br />due to its condition. Unless Lender determines pursuant to Section 5 that repair or restoration is not economically feasible,
<br />Borrower will promptly repair the Property if damaged to avoid ftirther deterioration or damage.
<br />CALIFORNIA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3005 07/2021
<br />CALIFORNIA DEED OF TRUST (SIDOT.CA)
<br />25283.8 (11/22) Page ol`17 BANK OF AMERICA, N.A.
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