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<br />required to pey Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however,
<br />that lnterest shall be paid on the Funds. Lender shall give to Borrower, without cherge, an annual accounting of 4he
<br />Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the
<br />excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA,
<br />Lender shall notify �rrower as required by RESPA, end Borrower shall pay to Lender the amount necessary to make up
<br />the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds
<br />held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to
<br />Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly
<br />peyments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funda held by Lender.
<br />4. Charges; Liens. Borrower shell pay all taxes, assessments, charges, fines, and impositions attributable to the
<br />Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if
<br />any, and Community Association Dues, Feas, and Assessments, if any. To the extent that these items are Escrow
<br />Items, Borrower shall pey them in the manner provided in Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner accepteble to Lender, but only so long
<br />as Borrower is parforming such agreement; Ib) contests the lien in good faith by, or defends against enforcement of the
<br />lien in, legal proceedings which in Lender's opinion operete to prevent the enforcement of the lien while those
<br />proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien en
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines thet any part
<br />of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Within 10 days of the dete on which that notice is given, Borrower shall satisfy the lien or
<br />take one or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification end/or reporting service
<br />used by Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured agalnst loss by fire, hazards included within the term "extended coverage," and any other hazards including, but
<br />not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts (including deductible Ievels) and for the periods that Lender requires. What Lender requires pursuant to the
<br />preceding sentences can change during the term of the Loan. The insurance carrier providing the insurence shell be
<br />chosen by Borrower subject to Lender's right to disepprove Borrower's choice, which right shall not be exercised
<br />unreasonably. Lender may require Borrower to pay; in connection with this Loan, either: (a) a one-time charge for flood
<br />zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and
<br />certification services and subsequent cherges each time remappings or similar changes occur which reasonably might
<br />affect such determination or certification. Borrower shall elso be responsible for the payment of any fees imposed by
<br />the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting
<br />from an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option •and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of
<br />coverage. Therefore, such coverege shall caver Lender, but might or might not protect Borrower, Borrower's equity in
<br />the Property, or the contents of the Property, ageinst any risk, hazerd or liability and might provide greater or lesser
<br />coverage then was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obteined
<br />might significantly exceed the cost of insuranca that Borrower could have obtained. Any amounts disbursed by Lender
<br />under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts
<br />shell bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice
<br />from Lender to Borrower requestino payment.
<br />All insurence policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br />disapprove such policies, shall include a standard mortgage clause, and shell name Lender as mortgegae and/or as an
<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 renewel notices. If Borrower obteins any form
<br />of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy
<br />shall include a standard mortgage clause and shall name Lender es mortgagee and/or es an additional loss payee.
<br />In the event of loss, Borrower shali giva prompt notice to the insurance carrier end Lender. Lender may make
<br />proof of loss if not made promptly by Borrower. Unless Lender end Borrower otherwise agree in writing, any insurance
<br />proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoretion or repair of
<br />the Property, if the restoration or repair is economically feasible end Lender's security is not lessened. During such
<br />repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an
<br />opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that
<br />such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single
<br />payment or in a series of progress paymants as the work is completed. Unless en agreement is mede in writing or
<br />Applicabie Law requires interest to be paid on such insurence proceeds, Lender shall not be raquired to pay Borrower
<br />any interest or earnings on such proceeds. Fees for public adjusters, orother third perties, retained by Borrower shall
<br />not' be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br />secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such
<br />insurance proceeds shall be epplied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and releted
<br />matters. If Borrower does not raspond within 30 days to a notice from Lender that the insurance carrier has offered to
<br />settle a cleim, then Lender may negotiate and settle the cleim. The 30-day period will begin when the notice is given.
<br />In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a)
<br />Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this
<br />Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums
<br />paid by Borrower) under efl insurance policies covering the Property, insofar as such rights are applicable to the
<br />coverage of the Property. Lender mey use the insurance proceeds either to repair or restore the Property or to pay
<br />amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />"" 6. �Occupancy. 8orroWer shall occupy; establisN,'and use ffie Property es Borrower's principai `residenca within 6U
<br />days after the execution of this Security Instrument end shell continue to occupy the Property es Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent
<br />shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or
<br />impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is
<br />residing in tha Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is determined pursuent to Section 5 that repair or restoration is not
<br />economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage.
<br />If insurence or condemnation proceeds are peid in connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes.
<br />Lender may disbursa proceeds for the repairs and restoration in a single payment or in a series of progress peyments as
<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
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