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<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires,
<br />Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Bonower obtains any
<br />form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Properly, such
<br />policy sha11 include a standazd mortgage clause and sha11 name Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event of loss, Bonower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br />proof of loss if not made promptly by Borrower. Unless Lender and Bonower otherwise agree in writing, any
<br />insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
<br />or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
<br />During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until. Lender
<br />has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction,
<br />provided that such inspection shall be undertaken promptly. Lender may disburse proce,eds for the repairs and
<br />restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement
<br />is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be
<br />required to pay Borrower any interest or eamings on such proceeds. Fees for public adjusters, or other third parties,
<br />retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Bonower.
<br />If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds
<br />sha11 be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid
<br />to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Bonower abandons the Properly, Lender may file, negotiate and settle any available insurance claim and
<br />related matters. If Bonower does not respond within 30 days to a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the
<br />notice is given. In either event, or if Lender acquires the Properly under Section 22 or otherwise, Bonower hereby
<br />assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid
<br />under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund
<br />of unearned premiums paid by Bonower) under all insurance policies covering the Property, insofar as such rights
<br />aze applicable to the coverage of the Property. Lender ma.y use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Bonower's principal residence
<br />within 60 days after the execution of this Security Instrument and sha11 continue to occupy the Property as Bonower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agr�s in writing, which
<br />consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Bonower's
<br />control.
<br />7. Preservallon, Maintenance and Prot�tion of the Property; Inspections. Borrower shall not destroy,
<br />damage or ixnpair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not
<br />Borrower is residing in the Property, Borrower shall maintain the Properiy in order to prevent the Property from
<br />deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to 5ection 5 that repair or
<br />restoration is not economically feasible, Borrower sha11 promptly repair the Property if damaged to avoid further
<br />deterioration or damage. If insurance or condemnation proceeds aze paid in connection with damage to, or the taking
<br />of, the Property, Bonower shall be responsible for repairing or restoring the Property only if Lender has released
<br />procceds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in
<br />a series of progress payments as the work is completed. If the insurance or condemnation proc�ds are not sufficient
<br />to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair
<br />or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause,
<br />Lender may inspe,ct the interior of the improvements on the Property. Lender shall give Bonower notice at the time
<br />of or prior to such an interior inspection specifying such reasonable cause.
<br />S. Borrower's Loan Application. Bonower shall be in default if, during the Loan application process,
<br />Bonower or any persons or entities acting at the direction of Borrower or with Bonower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with
<br />material information) in connection with the Loan. Material representations include, but are not lunited to,
<br />representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instnunent, (b) there is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may
<br />attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the
<br />Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and se.curing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums
<br />secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attomeys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its se,cured
<br />position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make repairs, change locks, replace or boazd up doors and windows, drain water from pipes, eliminate building or
<br />other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action
<br />under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agrced that
<br />I,ender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />NEBRASKA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DodNag/c�
<br />Form 3028 1/01 � Page 5 of 11 www.docmagfc.com
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