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<br />when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise,
<br />Bonower hereby assigns to Lender (a) Bonower's rights to any insurance proceeds in an amount not to exceed
<br />the amounts unpaid under the Note or this Security Instru�nt, and (b) any other of Bonower's rights (other than
<br />the right to any refund of uneamed premiums paid by Borrower) under all insurance policies covering the
<br />Property, insofar as such rights are applicable to the coverage of the Properly. Lender may use the insurance
<br />proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security
<br />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 Property
<br />as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees
<br />in writing, wluch consent shall not be unreasonably withheld, or unless extenuating circumstances exist which aze
<br />beyond Bonower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Properiy.
<br />Whether or not Borrower is residing in the Property, Borrower shall maintain the Properly in order to prevent the
<br />Property from deteriorating or decreasing in value due to its condition. Unless it is deternuned pursuant to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
<br />damaged to avoid further deterioration or damage. If insurance or condemna6on proceeds aze paid in connecdon
<br />with damage to, or the taking of, the Property, Bonower shall be responsible for repairing or restoring the
<br />Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs
<br />and restoration in a single payrrrent or in a series of progress payments as the work is completed. If the insurance
<br />or condemnation proceeds aze not sufficient to repair or restore the Property, Bonower is not relieved of
<br />Borrower's obligation for the completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Properiy. If it has
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
<br />Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Bonower shall be in default if, during the Loan application
<br />process, Bonower or any persons or entities acting at the direction of Borrower or with Bonower's lmowledge or
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide
<br />Lender with material information) in connection with the Loan. Material representations include, but aze not
<br />limited to, representations concerning Borrower's occupancy of the Property as Bonower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this 5ecurity Instrumen� If
<br />(a) Bonower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a
<br />legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security
<br />Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien
<br />which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Bonower has
<br />abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect
<br />Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing
<br />the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not
<br />limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing
<br />in court; and (c) paying reasonable attomeys' fees to protect its interest in the Property and/or rights under this
<br />Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Properiy includes,
<br />but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows,
<br />drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities
<br />turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not
<br />under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions
<br />authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
<br />secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and sha11 be payable, with such interest, upon notice from Lender to Bonower requesting payment.
<br />If this Security Instrument is on a leasehold, Bortower shall comply with all the provisions of the lease.
<br />If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees
<br />to the merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the
<br />Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason,
<br />the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insurance and Bonower was required to make separately designated payments toward
<br />the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially
<br />equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to
<br />Bonower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender.
<br />If substantially equivalent Mortgage Insurance coverage is not available, Bonower shall continue to pay to
<br />Lender the amount of the sepazately designated payrc�nts that were due when the insurance coverage ceased to be
<br />in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage
<br />Insurance. Such loss reserve sha11 be non-refundable, notwithstanding the fact that the Loan is uldmately paid in
<br />full, and Lender shall not be required to pay Bonower any interest or eamings on such loss reserve. Lender can
<br />no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that
<br />Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender
<br />requires separately designated payments towazd the premiums for Mortgage Insurance. If Lender required
<br />Mortgage Insurance as a condition of making the Loan and Borrower was required to make sepazately designated
<br />payments toward the premiums for Mortgage Insurance, Bonower shall pay the premiums required to maintain
<br />Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for
<br />Mortgage Insurance ends in accordance with any written agreement between Bonower and Lender providing for
<br />such ternunation or until ternunation is required by Applicable Law. Nothing in this Section 10 affects
<br />Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that pwchases the Note) for certain losses it may
<br />incur if Borrower does not repay the Loan as agreed. Bonower is not a party to the Mortgage Insurance.
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (MERS) Form 3028 LOl (page S of 9 pages)
<br />12439.CV (9/11) 874173 Creative Thinldng, Inc.
<br />GOTO(OOldt3t7)
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