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<br /> which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's
<br /> option,obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shail be acceptable to Lender and shall include a standard mortgage clause. Lender shali
<br /> have the right to hold the policies and renewals. If Lender requires, Borrower shall prompdy give to Lender all receipts of
<br /> paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br /> Lender. Lender may make proof of loss if not made prompfly by Borrower.
<br /> Unless Lender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br /> Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration
<br /> or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the
<br /> sums secured by this Security Instrument,whether or not then due,with any excess paid to Borrower. If Borrower abandons
<br /> the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim,
<br /> then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay
<br /> sums secured by this Security Instrument,whether or not then due.The 30-day period will begin when the notice is given.
<br /> Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall not extend 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
<br /> paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br /> Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; �
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after
<br /> the execution of this Security Instrument and shall continue to occupy the Property as Bonower's principal residence for at
<br /> least one year after the date of occupancy, unless Lender otherwise agrees in writing,which consent shall not be unreasonably
<br /> withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage
<br /> or impair the Property, allow the Property to deteriorate,or commit waste on the Property. Borrower shall be in default if any
<br /> forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in
<br /> forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security
<br /> interest. Borrower may cure such a default and reinstate, as provided in paragraph 18,by causing the action or proceeding to
<br /> be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the
<br /> Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower
<br /> shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate informadon or
<br /> statements to Lender (or failed to provide Lender with any material information)in connection with the loan evidenced by the
<br /> Note,including,but not limited to,representations concerning Borrower's occupancy of the Property as a principal residence.
<br /> If this Security Instrument is on a leasehold, Borrower shall comply with ail the provisions of the lease. If Bonower acquires
<br /> fee title to the Property,the leasehold and the fee tide shall not merge unless Lender 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 Instrument, or there is a legal proceeding that may significandy af�'ect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),then Lender may do and
<br /> pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's acdons may
<br /> include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br /> reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this
<br /> paragraph 7, Lender 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 Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in efTect. If, for any reason, the
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in ef�'ect, Borrower shall pay the premiums required to
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in efI'ect, 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, Borrower shail pay to Lender each month a sum equal
<br /> to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or
<br /> ceased to be in efT'ect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss
<br /> reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for
<br /> the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained.
<br /> Bonower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the
<br /> requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or
<br /> applicable law.
<br /> Single Family-- FNMA/FHLMC UNIFORM INSTRUMENT FORM 3028 08/90(Page 3 of 6 Pages)
<br /> NEBRASKA EC899L Rev.09/09/91
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