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01/31/2001 13:02 HOMEOWNERS LOAN 4 14024619553
<br />200101541
<br />NO. 205 9010
<br />Borrower shall promptly discharge any lien which has priority over this Security instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith
<br />the lien by, or defends against enforcement of the lien in, legal proceedings which in �e Lender's opinion operate to prevent
<br />the enforcement of the lien; or (c) secures from the holder of the lien an agreement s4tisfactory to Lender subordinating the
<br />lien to this Security 'Instrument. If bender determines that any part of the Property 1 is subject to a lien which may attain
<br />priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the
<br />lien or take one or more of the actions set forth above within IO days of the giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements nods existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br />floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the
<br />periods that Lender requires. The insurance carrier providing the insurance shall be cl, osen by Borrower subject to Lender's
<br />approval which shall not be unreasonably withheld_ if Borrower fails to maintain coverage described above, Lender may, at
<br />Lender's option, obtain coverage to'protect Lender's rights in the Property in aceordar%ce with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shd�l promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prom
<br />pt notice to the insurance carrier and
<br />Lender. Lender may make proof of loss if not made promptly by Borrower_
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall; be applied to restoration or repair of
<br />the Property damaged, if the restoration or repair is economically feasible and Leader's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be less ned, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, Y ith any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within 30 days a notice from JLender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender ma} use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not tht n due. The 30 -day period will begin
<br />when the notice is given_
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or grange the amount of the payments_ If
<br />wider paragraph 21 the Property is acquired by Lender, Borrower's right to any hn rance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the exteR of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservati0n, Ma uteunce and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after
<br />the execution of this Security Instrument and shall continue to occupy the Property as; Borrower's principal residence for at
<br />least one year after the date of occupancy, unless Lender otherwise agrees in *riting, which consent shall not be
<br />unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate, or commit yvaste ou the Property. Borrower shall
<br />be in default if any forfeiture action or proceeding, whether civil or criminal, is begin that in Lender's good faith judgment
<br />could result in forfeiture of the Property or otherwise materially impair the lien c eated by this Security Instrument or
<br />Lender's security interest_ Borrower may cure such a default and reinstate, as prov ded in paragraph 18, by causing the
<br />action or proceeding to be dismissed' with a ruling that, in Lender's good faith det nation, precludes forfeiture of the
<br />Borrower's interest in the Property or other material impairment of the lien created b this Security Instrument or Lender's
<br />security interest_ Borrower shall also be in default if Borrower, during the loan application process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with am material information) in connection
<br />with the loan evidenced by the Note, including, but not limited to, representations eo eer ung Borrower's occupancy of the
<br />Property as a principal residence. If this Security Instrument is on a leasehold, Borrow�r shall comply with all the provisions
<br />of the lease_ if Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender
<br />agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower falls to perform the covenants and agreements contained
<br />in this Security Instrument, or there is a legal proceeding that may significantly affect; Lender's rights in the Property (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce lhws or regulations), then Lender may
<br />do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's
<br />action's may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court,
<br />paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this
<br />paragraph 7. Lender does not have to do so.
<br />NEBRASU- Si gk Famlb F=We Maefrnddle Mac UNIFORM UWMUMENT
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