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<br />which shall not be unreasonably withheld. If Borrower fails to maintain coverage described Aove, Lender may, at Lender's
<br />option, obtain coverage to 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 clause. Lender shall
<br />have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />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 of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration
<br />or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the
<br />sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons
<br />the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim,
<br />then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay
<br />sums secured by 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 extend or postpone
<br />the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under
<br />paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br />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 after
<br />the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br />least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br />withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage
<br />or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any
<br />forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in
<br />forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security
<br />interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to
<br />be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the
<br />Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower
<br />shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or
<br />statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the
<br />Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires
<br />fee title to the Property, the leasehold and the fee 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 contained in
<br />this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a
<br />proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and
<br />pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br />include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br />reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this
<br />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 Security
<br />Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
<br />disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br />Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the
<br />mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to
<br />obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br />cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br />substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal
<br />to one - twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or
<br />ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss
<br />reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for
<br />the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained.
<br />Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the
<br />requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or
<br />applicable law.
<br />Single Family -- FNMA/FHLMC UNIFORM INSTRUMENT FORM 3028 09/90 (Page 3 of 6 Pages)
<br />NEBRASKA EC888L Rev. 08 /08/81
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