|
200002768
<br />under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to
<br />amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late
<br />charges due under the Note.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable
<br />to the Property which may attain priority over this Security Instrument, and leasehold payments or ground
<br />rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in
<br />that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly
<br />furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br />directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
<br />Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to
<br />Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings
<br />which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of
<br />the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which may attain priority over this Security
<br />Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take
<br />one or more of the actions set forth above within 10 days of the giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter
<br />erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and
<br />any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be
<br />maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the
<br />insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld.
<br />If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to
<br />protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage
<br />clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall
<br />promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower
<br />shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made
<br />promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration
<br />or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is
<br />not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened,
<br />the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then
<br />due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30
<br />days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the
<br />insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by
<br />this Security Instrument, whether or not then due. 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
<br />extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the
<br />amount of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any
<br />insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to
<br />Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within sixty days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
<br />otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating
<br />circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br />Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if
<br />any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment
<br />could result in forfeiture of the Property or otherwise materially impair the lien created by this Security
<br />Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in
<br />paragraph 18, 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
<br />the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br />Borrower, during the loan application process, gave materially false or inaccurate information or statements to
<br />Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by
<br />NEBRASKA- Single Family - Fannie Mae /Freddie Mac Uniform Instrument
<br />Form 3028 9/90
<br />Laser Forms Inc. (800) 446-3555
<br />LFI #FNMA3028 1/99 Page of 7 Initials: DZ
<br />
|