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<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazatds
<br />including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be
<br />maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender
<br />requires pursuant to the preceding sentences can change during the term of the Loan. The insurance cazrier providing
<br />the insurance shall be chosen by Bonower subject to Lender' s right to disapprove Bonower' s choice, which right shall
<br />not be exercised unreasonably. Lender may require Borrower to pay, in connection with ttus Loan, either: (a) a one-
<br />time charge for flood zone determinarion, certification and ttacking services; or (b) a one-time charge for flood zone
<br />determination and certification services and subsequent chazges each time remappings or similar changes occur which
<br />reasonably might affect such determination or certificarion. Borrower shall also be responsible for the payment of
<br />any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone
<br />determination resulting from an objecrion by Borrower.
<br />If Bonower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option and Bonower's expense. Lender is under no obligation to purchase any particular type or amount
<br />of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Bonower, Borrower's
<br />equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater
<br />or lesser coverage than was previously in effect. Bonower acknowledges that the cost of the insurance coverage so
<br />obtained might significantly exceed the cost of insurance that Borrower could have obtained Any amounts disbursed
<br />by Lender under this Secrion 5 shall become additional debt of Bonower secured by this Security Instrument. These
<br />amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest,
<br />upon notice from Lender to Bonower requesting payment.
<br />All insurance 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 shall name Lender as mortgagee 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 renewal norices. If Bonower obtains any
<br />form of insurance coverage, not otherwise required by Lender, for damage to, or destrucrion of, the Property, such
<br />policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event of loss, Bonower sha11 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 Borrower 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 restorarion 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 proceeds 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 Bonower any interest or earnings 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 sha11 be the sole obligation of Borrower.
<br />If the restoration or repair is not economically feasible or Lender' s security would be lessened, the insurance proceeds
<br />shall be applied to the sums secured by tUis 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 Property, Lender may file, negotiate and settle any available insurance claim and
<br />related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance cazrier has
<br />offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the
<br />norice is given. In either event, or if Lender acquires the Property under Section 21 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 Bonower' s rights (other than the right to any refond
<br />of unearned premiums paid by Bonower) under all insurance policies covering the Property, insofar as such rights
<br />NEBRASKA-Single Family-UNIFORMINSTRUM�VT �Meglc�nuu�
<br />MODIFIm FOR DEPARTMENT OF VETERANS AFFAIRS - MERS www.docmaglc.com
<br />(Rev. 1/01) Page 6 of 14
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