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201 20664v
<br />of insurance coverage, not otherwise required by Lender, for damage to, or destruction o� the Property, such policy shall
<br />include a standard 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 insuraace carrier and Lender. Lender ma.y make proof
<br />of loss if not made promptly by Borrower. Unless Lender and Bonower otherwise agree in writing, any insurance
<br />proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and
<br />restoration period, Lender sha11 have the right to hold such insurance proceeds until Lender has had an opportunity to
<br />inspect such Properiy to ensure the work has been completed to Lender's sarisfaction, provided that such inspection shall
<br />be underta.ken 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 requires interest
<br />to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the �nc��r�ce
<br />proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's
<br />security would be lessened, the insurance proceeds shall be applied to the sums secured by tlus Security Instrument,
<br />whether or not then due, with the excess, if any, paid to Boaower. Such insurance proceeds sha11 be applied in the order
<br />provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insura.nce claim and related
<br />matters. If Bonower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to
<br />settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In
<br />either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender
<br />(a) Borrower's rights to any insurance proceeds itt 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 paid
<br />by Borrower) under a11 insurance policies covering the Property, insofar as such rights are applicable to the coverage of
<br />the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid
<br />under the Note or this Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Prnperty as Borrower's principal residence within 60
<br />days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender othervvise agrees in writing, which consent shall
<br />not be unreasonably withheld, or unless extenuating circumstances exist wluch are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage
<br />or impair the Property, a11ow the Property to deteriorate or commit waste on the Properiy. Whether or not Borrower is
<br />residing in the Property, Bonower 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 pursuant 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 dama.ge.
<br />If insurance or condemnation proceeds are paid in connecrion with damage to, or the taking of, the Property, Borrower
<br />sha11 be responsible for repairing or restoring the Properiy only if Lender has released proceeds for such purpos�. Lender
<br />may disburse proceeds for the repairs and restorarion in a single payment or in a series of progress payments as the work
<br />is completed. If the insurance or condemnation proceeds aze not sufficient to repair or restore the Property, Borrower is
<br />not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender or its agent may ma.ke reasonable entries upon and inspections of the Property. If it has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or
<br />prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application pracess, Borrower or
<br />any persons or enrities acting �t the direction of Borrower or with Borrower's Irnowledge or consent gave materially
<br />false, misleading, or ina.ccurate information or statements to Lender (or failed to provide Lender with material
<br />informarion) in connection with the Loan. Material representations include, but are not limited to, representations
<br />concerning Borrower's occupancy of the Properiy as Borrower's principal residence.
<br />NEBRASKA -Single Family-Fannie Mae/Freddte Mac UNIFORM INSTRUMENT wtth MERSForm 3028 1/01 �
<br />Page 8 of 13 �
<br />ias, i�c. Borrower(s) Initials �
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