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20000 4892
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then 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 1 and 2 or change the amount of the payments. If
<br />under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />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 residence
<br />for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br />unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall
<br />not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower
<br />shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith
<br />judgment 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 paragraph 18, by
<br />causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes
<br />forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security
<br />Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process,
<br />gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning
<br />Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower
<br />shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee
<br />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 regulations),
<br />then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the
<br />Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument,
<br />appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may
<br />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 from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
<br />Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any
<br />reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the
<br />premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost
<br />substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage
<br />insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to
<br />Lender each month a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by Borrower when the
<br />insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in
<br />lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage
<br />insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender
<br />again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in
<br />effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written
<br />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. Lender shall
<br />give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />10. 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 in
<br />which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums
<br />LOAN NO.: 101997
<br />Initials
<br />NEBRASKA - Single Family - Fannie Mae /Freddie Mac UNIFORM INSTRUMENT
<br />DOCPREP SERV/CEs, INC. FORM - DEEDNEl -2569 Page 3 of 6
<br />ORIGINAL
<br />Form 3028 9/90
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