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7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br /> contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br /> Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), the
<br /> Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property.
<br /> Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in
<br /> court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under
<br /> this paragraph 7, Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 sha11 become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the
<br /> date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting
<br /> payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this �
<br /> Security Instrument, Borrower sha11 pay the premiums required to maintain the mortgage insurance in effect. If, for any �
<br /> reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums '
<br /> required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially
<br /> equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved �
<br /> by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to L.ender each month �
<br /> a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage
<br /> lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage �
<br /> insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the �
<br /> amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is N
<br /> obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br /> until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or
<br /> applicable law.
<br /> 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. I,ender shall
<br /> give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br /> 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br /> condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and
<br /> 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 Security
<br /> Instnunent, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in
<br /> which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums
<br /> secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the
<br /> sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction:
<br /> (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property
<br /> immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which
<br /> the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately
<br /> before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the
<br /> proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make
<br /> an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given,
<br /> Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the
<br /> sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of
<br /> Bonower shall not operate to release the liability of the original Bonower or Borrower's successors in interest. Lender shall
<br /> not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise
<br /> modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower
<br /> or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy sha11 not be a waiver of or
<br /> preclude the exercise of any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this
<br /> Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of
<br /> paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that
<br /> Bonower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums
<br /> secured by this Security Instrument; and(c) agrees that Lender and any other Borrower may agree to extend, modify, forbear
<br /> or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's
<br /> consent.
<br /> 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maYimum loan
<br /> charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection
<br /> with the loan exceed the pernutted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce
<br /> the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded pernutted limits will be
<br /> refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a
<br /> direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any
<br /> prepayment charge under the Note.
<br /> 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by
<br /> mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property
<br /> Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail
<br /> to Lender's address stated herein or any other address L.ender designates by notice to Borrower. Any notice provided for in
<br /> this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph.
<br /> 15. Governing Law; Severability. This Security Instrument sha11 be governed by federal law and the law of the
<br /> jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note
<br /> conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can
<br /> be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are
<br /> declared to be severable.
<br /> 16. Borrower's Copy. Borrower sha11 be given one conformed copy of the Note and of this Security Instrument.
<br /> 17. Transfer of the Property or a Beneficial Interest in Borrower. If a11 or any part of the Property or any interest in
<br /> it is sold or transferred(or if a beneficial interest in Borrower is sold or transferred and Borrower is not a
<br /> NEBRL�SK2�-Single Family Page 3 of 5 Form 3028 9-90
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