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shall pay them on time directly to the person owed payment. Borrower shall promptly „furnish to Lender alF,notices
<br />of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly
<br />furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory
<br />to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is
<br />subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying
<br />the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving
<br />of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
<br />the Property insured against loss by fire, hazards included within the term "extended coverage” and any other hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br />and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower
<br />subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage
<br />described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in
<br />accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to
<br />the insurance carrier and 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
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened.
<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 21 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 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 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 />NEBRASKA - Single Family- FNMA/FH MC UNIFORM INSTRUMENT Form 3028 9/90
<br />Document Systems, Inc. (800) 649 -1362 Page 3 of 8
<br />DEEDNE3.LSR II1II11111111111111111 II 1 II II 1 II II II 11111111111111IIIIIIII III
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