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<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 />If Borrower obtains any other hazard insurance or any other insurance on the Property and such insurance is not
<br />specifically required by Lender, then such insurance shall (i) name Lender as loss payee thereunder and (ii) be subject
<br />to the provisions of this paragraph 5.
<br />6. Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<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.
<br />Borrower shall, at Borrower's own expense, appear in and defend any action or proceeding purporting to affect
<br />the Property or any portion thereof or Borrower's title thereto, the validity or priority of the lien created by this
<br />Security Instrument, or the rights or powers of Lender or Trustee with respect to this Security Instrument or the
<br />Property. All causes of action of Borrower, whether accrued before or after the date of the Security Instrument, for
<br />damage or injury to the Property or any part thereof, or in connection with any transaction financed in whole or in
<br />part by the proceeds of the Note or any other note secured by this Security Instrument by Lender, or in connection
<br />with or affecting the Property or any part thereof, including causes or action arising in tort or contract and causes of
<br />action for fraud or concealment of a material fact, are, at Lender's option, assigned to Lender, and the proceeds thereof
<br />shall be paid directly to Lender who, after deducting therefrom all its expenses, including reasonable attorneys' fees,
<br />may apply such proceeds to the sums secured by the Security Instrument or to any deficiency under the Security
<br />Instrument or may release any monies so received by it or any part thereof, as Lender may elect. Lender may, at its
<br />option, appear in and prosecute in its own name any action or proceeding to enforce any such cause of action and may
<br />make any compromise or settlement thereof. Borrower agrees to execute such further assignments and any other
<br />instruments as from time to time may be necessary to effectuate the foregoing provisions and as Lender shall request.
<br />Borrower shall also be in default if Borrower, during the loan application process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br />connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's
<br />occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply
<br />with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall
<br />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
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's
<br />rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this
<br />Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs.
<br />Although Lender may 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
<br />this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
<br />interest from the date of disbursement at the Note rate in effect from time to time and shall be payable, with interest,
<br />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
<br />Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for
<br />any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay
<br />the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at
<br />a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate
<br />mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available,
<br />Borrower shall pay to Lender each month a sum equal to one - twelfth of the yearly mortgage insurance premium being
<br />paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain
<br />these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at
<br />the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided
<br />by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required
<br />to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance
<br />ends in accordance with any written 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
<br />shall 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. Lender may apply, use or release the condemnation proceeds in the same
<br />manner as provided in paragraph 5 hereof with respect to insurance proceeds.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to
<br />make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the
<br />notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of
<br />the Property or to the sums secured by this Security Instrument, whether or not then due.
<br />NEBRASKA ARM PROGRAMS (REV. 03/9
<br />Document systems. Inc. (800) 649 -1362 Page 3 of 7 /
<br />Borrower Initials (vYi , 11/
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