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<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 this Security Instrument, whether or not then due, with any excess paid to
<br />Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the
<br />insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the
<br />proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due.
<br />The 30 -day period will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the
<br />payments. If under paragraph 23 the Property is acquired by Lender, Borrower's right to any insurance policies and
<br />proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums
<br />secured by this Security Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance 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
<br />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 otherwise agrees in writing, which consent
<br />shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the
<br />Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that
<br />in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien
<br />created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as
<br />provided in paragraph 17, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br />determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien
<br />created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during
<br />the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to
<br />provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not
<br />limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br />Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title
<br />to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
<br />contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br />Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's
<br />rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this
<br />Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs.
<br />Although Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest
<br />from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to
<br />Borrower requesting payment.
<br />8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender
<br />shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property
<br />in which the fair market value of the Property immediately before the taking is equal to or greater than the amount
<br />of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise
<br />agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided
<br />by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower.
<br />In the event of a partial taking of the Property in which the fair market value of the Property immediately before the
<br />taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender
<br />otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums
<br />secured by this Security Instrument whether or not the sums are then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to
<br />make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the
<br />notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of
<br />the Property or to the sums secured by this Security Instrument, whether or not then due.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such
<br />payments.
<br />10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in
<br />interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in
<br />interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend
<br />time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any
<br />demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising
<br />any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br />NEBRASKA- Single Family - UNIFORM INSTRUMENT
<br />Dmumnt Systems, Inc. (800) 649 -1362 Page 3 of 6
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