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2101384
<br />LOAN #: 21297
<br />acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost
<br />of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section
<br />5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall
<br />bear interest at the Note rate from the date of disbursement and shall be payable, with such interest,
<br />upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
<br />right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as
<br />mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal
<br />certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender,
<br />for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
<br />shall name Lender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
<br />may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree
<br />in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender,
<br />shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible
<br />and Lender's security is not lessened. During such repair and restoration period, Lender shall have the
<br />right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to
<br />ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be
<br />undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment
<br />or in a series of progress payments as the work is completed. Unless an agreement is made in writing or
<br />Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to
<br />pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties,
<br />retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of
<br />Borrower. 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
<br />not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the
<br />order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
<br />claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
<br />insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30 -
<br />day period will begin when the notice is given. In either event, or if Lender acquires the Property under
<br />Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument,
<br />and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid
<br />by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable
<br />to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within 60 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.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br />not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
<br />Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
<br />order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it
<br />is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower
<br />shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released proceeds for
<br />such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or
<br />in a series of progress payments as the work is completed. If the insurance or condemnation proceeds
<br />are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for
<br />the completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. If it has
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
<br />Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to
<br />provide Lender with material information) in connection with the Loan. Material representations include,
<br />but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's
<br />principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument.
<br />If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument,
<br />(b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or
<br />rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or
<br />forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce
<br />laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this
<br />NEBRASKA --Single Family --Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
<br />Ellie Mae, Inc. Page 5 of 10
<br />NEUDEED 0415
<br />NEUDEED (CLS)
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