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201200975
<br /> coverage, at Lender's option and Borrower's expense. Lender is under no o6ligation to purchase any
<br /> particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
<br /> not protect 8orrower, Borrower's equity in the Property, or the contents of the Property, against any risk,
<br /> hazard or liability and might provide greater or lesser coverage than was previously in effed. Borrower
<br /> acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of
<br /> insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5
<br /> shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear
<br /> interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon
<br /> notice from Lender to Borrower requesting payment.
<br /> All insurance policies required by Lender and renewals of such policies shail be subject to
<br /> Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name
<br /> Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies
<br /> and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br /> premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise
<br /> required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard
<br /> mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee.
<br /> In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower
<br /> otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required
<br /> by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is
<br /> economically feasible and Lender's security is not lessened. During such repair and restoration period,
<br /> Lender shall 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 satisfadion, provided that such
<br /> inspection shall be undertaken promptly. Lender may dis6urse proceeds for the repairs and restoration in
<br /> a single payment or in a series of progress payments as the work is completed. Unless an agreement is
<br /> made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall
<br /> not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or
<br /> other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the
<br /> sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security
<br /> would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br /> Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds
<br /> shall be applied in the order provided for in Section 2.
<br /> If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
<br /> claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
<br /> insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The
<br /> 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under
<br /> Section 22 or otherwise, Borrower hereby assigns to Lender (a)Borrowers rights to any insurance
<br /> proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and
<br /> (b)any other of Borrower's rights (other than the right to any refund of unearned premiums paid by
<br /> Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the
<br /> coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property
<br /> 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 Borrower's principal
<br /> residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
<br /> Property as Borrower's principal residence for at least one year after the date of occupancy, unless
<br /> Lender othervvise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Borrower's control.
<br /> 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br /> not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
<br /> II II II II II I I III II I I I I I I II II II II II I II I II
<br /> +• 3 O O O 'I 7 5 8 9 6 * M C M D O T
<br /> NEBRASKA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1l01 (paqe 6 of 14 pagesJ .
<br /> FinaleUacumentServices� 302702/06
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