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200002'768
<br />the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a
<br />principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the
<br />provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not
<br />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
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture
<br />or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value
<br />of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by
<br />a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees
<br />and entering on the Property to make repairs. Although Lender may take action under this paragraph 7,
<br />Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured
<br />by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts
<br />shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon
<br />notice from Lender to Borrower requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured
<br />by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in
<br />effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect,
<br />Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage
<br />insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage
<br />insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially
<br />equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum
<br />equal to one - twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance
<br />coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve
<br />in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if
<br />mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer
<br />approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to
<br />maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage
<br />insurance ends in accordance with any written agreement between Borrower and Lender or applicable law.
<br />9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property.
<br />Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the
<br />inspection.
<br />10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of
<br />condemnation, are hereby 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
<br />Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial
<br />taking of the Property in which the fair market value of the Property immediately before the taking is equal to
<br />or greater than the amount of the sums secured by this Security Instrument immediately before the taking,
<br />unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be
<br />reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums
<br />secured immediately before the taking, divided by (b) the fair market value of the Property immediately before
<br />the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which
<br />the fair market value of the Property immediately before the taking is less than the amount of the sums secured
<br />immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law
<br />otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or
<br />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
<br />offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days
<br />after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to
<br />restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then
<br />due.
<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 I and 2 or change the
<br />amount of such payments.
<br />11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment
<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: �_
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