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20�20755�
<br />when the notice is given. In either event, or if Lender acquires the Property �mder Section 22 or otherwise,
<br />Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed
<br />the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (otherthan
<br />the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the
<br />ProperCy, insofar as such rights are applicable to the caverage of tha Propercy. Lender may use the insurance
<br />proceeds either to repair or restore the Property ar to pay amounts unpa�d under the Note or this Security
<br />Insttument, whether or not then due.
<br />d. Uccupaacy. Borrawer shall occupy, establish, and use the Property as Borrower's principai
<br />residence within 60 days afterthe execution ofthis Security Instrument and shal] continueto occupythe Property
<br />as Borrower's principal residence for at least one year after the date of accupancy, unless Lender otherwise agrees
<br />in writing, which consent shali notbe unreasonably withhelci, or unless extenuating circumstances exist which are
<br />beyond Borrower's control.
<br />7. Preservation, Maintenaace and Protection af the Pro�►erty; Inspections. Boaower shall not
<br />destroy, damaga or impair the Property, allow the Property to deteriorate or comm�t waste on the Pmperty.
<br />W3�ether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the
<br />Properiy from deteriarating or decreasing in vatue due to its condition. Unless it �s determined pursuant to
<br />Section 5 that repair or restoration is not economically feas�ble, Borrower shall promptly repair the Property if
<br />damaved to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in cormeciion
<br />with damage to, or the talcing of, the Property, Borrower shall be responsible for repairing or restaring the
<br />Property only if Lender has released proceeds for such purposes. Lender may disbutse proceeds for the repairs
<br />and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance
<br />or condemnatian proceeds are nat sufficient to repa�r or restore the Property, Borrower is not relieved of
<br />Borrower's abligation for the completion of such repair or restoration.
<br />Lender or its agent may malce reasonable entries upon and inspections of the F'roperty. If it has
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shail give
<br />Borrower notice at the time of or prior to such an interior inspecrion specifying such reasonable cause.
<br />8. Borrower's Loan Application. Banowar shall be in default if, during the Loan application
<br />process, Borrower or any persons or entities acting at the direcrion of Borrower or with Sorrower's knowledge or
<br />consent oave 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 are not
<br />limited to, representations concerning Borrower's occupancy ofthe Properry as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Secnrity Instrumen� If
<br />(a} Bonower fails to perform the covenants and ageements contained in this Security Inshument, {is} there is a
<br />legal proceeding that might significantly affect Lender's interest in the Property and/or rights underthis Security
<br />Insh (such as a pmceeding in banlmiptcy, probate, for condemnation or forfeiture, for enfarcement of a lien
<br />which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has
<br />abandoned the Property, then Lender ma.y do and pay for whatever is reasonable or ap�ropriate to protect
<br />Lender's interest in the Property and rights underthis Security Instrument, including protectang and/or assessing
<br />the value of the Proper[y, and securing and/or repairing the Properiy. Lender's acrions can include, but are not
<br />limited to: (a) paying any sums secured by a lien which has priority over this Security Instrurnent; {b} appearing
<br />in court; and (c} paying reasonable attomeys' fees to protect its interest in the Properiy andlor rights under this
<br />Security Instrument, mcluding its secured position in a banlQUptcy proceeding. Secwing the Properiy includes,
<br />but is not limited ta, entering the Properiy to make repairs, change lacks, replace or boazd up doors and windows,
<br />drain water frorn pipes, eliminate building or other code violations ar dangerous conditions, and have urilrties
<br />tumed on ar 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 al! 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 sha11 bear interest at the Note rate from the date of
<br />disbursement and shall be payable, with such interest, upon norice from Lender to Boaower requesting payment.
<br />If this Security Inshvment is on a leasehold, Borrower shall comply with all the provis�ons of the ]ease.
<br />If Borrower acqu'ves 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 malcing the
<br />Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason,
<br />the Martgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
<br />previously provided such insurance and Borrower was required to make separately dasignated payments toward
<br />the premiums for Mortgage Insurance, Borrower shall pay the prerniums required to obtain coverage substantially
<br />equivalent to the Mortgage Tnsurance previously in effect, at a cost substantially equivalent to the cost to
<br />Borrower ofthe Mortgage Insurance prevLOUSIy in effect, from an altemate mortgage u►surer selected by Lender.
<br />If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to
<br />Lender the amount of the separately designated payments 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 />Iasurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately pa�d in
<br />full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can
<br />no longer require loss reserve payments if Mortgage Iusurance coverage (in the amount and for the periad that
<br />Lender requires) provided by an insurer selected by Lender again becomes available, is abtained, and Lender
<br />requires separately designated payments toward the premiums for Mortgage Insurance. If I,ender required
<br />Mortgage Insurance as a condition of making the Loan and Borrower was reqwred to make separately designated
<br />payments taward the premiums for Mortgage Insurance, Borrower shall pay the premiums recluired to maintain
<br />Mortgage Insurance in effec�, or to provide a non-refundable lass reserve, unhl Lendar's requirement far
<br />Mortgage Insurance ends in accordance with anywritten agreement betweenBorrower andI.enderproviding for
<br />such termination or until ternunation is required b� Ap�licable Law. Nothing in this Section 10 affects
<br />Borrower's obligation to pay interest at the rate provided m the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower does not repay the T.oan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />NEBitASKA—Singie Fam7y—Fannie MaelFreddie Mac UNIFORM INS'fRiJMENT (MERS) Form 30Z8 1101 (page 5 af 9pages)
<br />12434.CV (9t11) 4300102769 Creative Thlnldng, Inc.
<br />GOTQ(�03i003b)
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