|
200110585
<br />shall be the sole obligation of Borrower. If the restoration or repair is not ecenomically feasible or Lender's security would
<br />be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then
<br />due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section
<br />2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle
<br />a claim, then Lender may negotiate and settle the claim. The 30 -day period will begin when the notice is given. In either
<br />event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
<br />rights to any insurance 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 by Borrower) under
<br />all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender
<br />may use the insurance proceeds either to repair'or restore the Property or to pay amounts unpaid under the Note or this
<br />Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days 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 shall
<br />not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage
<br />or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is
<br />residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not
<br />ecenomically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage.
<br />If insurance or 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 such purposes. Lender
<br />may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work
<br />is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is
<br />not relieved of Borrower's obligation for 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 reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of
<br />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, Borrower
<br />or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false,
<br />misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
<br />connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's
<br />occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower
<br />fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that
<br />may significantly affect Lender's interest in the Property and /or rights under this Security Instrument (such as a proceeding
<br />in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security
<br />Instrument or to enforce laws or regulations), or (3) Borrower has abandoned the Property, then Lender may do and pay
<br />for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security
<br />Instrument, including protecting and /or assessing the value of the Property, and securing and /or repairing the Property.
<br />Lender's actions can include, but are not limited to, (a) paying any sums secured by a lien which has priority over this
<br />Security Instrument, (b) appearing in court, and (c) paying reasonable attorneys' fees to protect its interest in the Property
<br />and /or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the
<br />Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and
<br />windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities
<br />turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under
<br />any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under
<br />this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in
<br />writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower
<br />shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance
<br />coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and
<br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Form 3028 3/98
<br />Page 5 Form Software by Automated Real Estate Services, Inc. 1- 800 - 330 -1295 BE
<br />ED / (100481
<br />.t�. -n 'A-
<br />
|