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20120640v
<br />All insurance policies required by Lender and re�wals of such golicies shall Ue subject to Lender's right to
<br />disapgrove such policies, shall include a standard mortgage clause, and sha.11 name Lender as mortgagee
<br />andlor as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If
<br />Lender requires, Borrower shall prompfly give to Lender all receipts of paid premiums and renewal notices.
<br />If Borrower obtains any form of �nsnrannP �verage, not otherwise required by Lender, for damage to, or
<br />destiuction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as
<br />mortgagee andlor as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the �nc�,�r, a�er and Lender. Lender may
<br />make proof of loss if not made prompfly by Borrower. Unless Lender and Borrower otherwise agree in
<br />writing, anY �nc��*a-nsp proceeds, whether or not the underlying insurance was required by Lender, shall be
<br />applied to restoration or repair of the Property, if the restoration or repair is economically feasible and
<br />Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to
<br />hold such insurance proceeds until Lender has had an opportunity to inspect such Progerty to ensure the
<br />work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of
<br />progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
<br />requires interest to be paid on such inc�,�nsp proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such proceeds. Fees for public adjusteers, or other third parties, retained by Borrower
<br />shall not be paid out of the insurance proceeds a,nd slta,ll be the sole obligation of Borrower. ff the restoration
<br />or repair is not economically feasible or I.�nder's security would bE lessened, the insurance proceeds shall be
<br />applied to the sams secured by this Security Instrument, whether or not then due, with the excess, if arry,
<br />paid to Borrower. Such �n�„� proceeds shall be applied in the order provided for in 5ection 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available �nc„*ance claim and
<br />related matters. If Borrower does not respond within 30 days to a notice from Lender that the �n��*ansp
<br />carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will
<br />begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or
<br />otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount
<br />not to exceed the aznounts unpaid under the Note or this Security Instrument, and (b) any other of
<br />Borrower's rights (ofher than fhe right to any refund of unearned premiums paid by Borrower) under all
<br />insurance palicies covering the Property, insofar as such rights are applicable to the coverage of the
<br />Progerty. Lender may use the inc,,,�� proceeds either to repair or restore the Property or to pap amounts
<br />unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occupency. Borrawer shall occupy, establish, aitd use the Progerty as Borrower's principal residence
<br />within 60 da.ys after the execution of this Security Instrument and shall continue to occupy the Property as
<br />Bonower's principal residence for at least one year after the date of occupancy, unless Lender otherwise
<br />agrees in writing, which consent shall not be unreasona.bly withheld, or unless extenuating circumstances
<br />exist which are beyond Borrower's conttol.
<br />7, Preservation, Meintenence end Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Properiy, allow tb.e Progerty to deteriorate or commit waste on the Properly. Whether
<br />or not Borrower is residing in the Properiy, Borrower shall maintain the Properiy in order to prevent the
<br />Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall prompfly repair the Progerty
<br />if damaged to avoid further deterioration or damage. ff 1n�*�� or condemnation proceeds aze gaid in
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or
<br />restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds
<br />NEBRASKA-Single Family-Pannle Mae(Fraddia Mac UNIFORM INSTRUMENT Form 3028 1/01
<br />VMP � YMPB�NE) (11061.00
<br />Waltera Kluwar Flnencial Serviaes Page 7 of 17
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