|
~ ��- 1�3628 ORIGINAL
<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 residence
<br /> for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br /> unreasonably withheld, or unless extenuating circumstances exist which aze beyond Borrower's control. Borrower shall
<br /> not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower
<br /> shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith
<br /> judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security
<br /> Instrument or Lender's security interest. Bonower may cure such a default and reinstate, as provided in paragraph 18,by
<br /> causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes
<br /> forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security
<br /> Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application
<br /> process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any
<br /> material information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br /> concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold,
<br /> Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and
<br /> 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
<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 regulations),
<br /> then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the
<br /> Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br /> Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br /> 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 this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall beaz interest from
<br /> the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Bonower
<br /> 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 any
<br /> reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the
<br /> premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost
<br /> substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage
<br /> insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available,Borrower shall pay to
<br /> Lender each month a sum equal to one-twelfth of the yeazly mortgage insurance premium being paid by Bonower when the
<br /> insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in
<br /> lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage
<br /> insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender
<br /> again becomes available and is obtained. Bonower shall pay the premiums required to maintain mortgage insurance in
<br /> effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written
<br /> agreement between Bonower 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.
<br /> In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br /> Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in
<br /> which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums
<br /> secured by this Security Instrument immediately before the taking,unless Borrower and Lender otherwise agree in writing,
<br /> the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following
<br /> fraction: (a)the total amount of the sums secured immediately before the taking, divided by(b)the fair market value of the
<br /> Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the
<br /> Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums
<br /> secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law
<br /> otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums
<br /> aze then due.
<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 notice is
<br /> given,Lender is authorized to collect and apply the proceeds, at its option,either to restoration or repair of the Property or to
<br /> the sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br /> modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of
<br /> Borrower shall not operate to release the liability of the original Borrower or Bonower's successors in interest. Lender
<br /> shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or
<br /> otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the
<br /> original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy
<br /> shall not be a waiver of or preclude the exercise of any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of
<br /> this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of
<br /> pazagraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
<br /> Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey
<br /> that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay
<br /> the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend,
<br /> modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that
<br /> Bonower's consent.
<br /> 3048A (DNEO) 3/98 Nebraska Form 3028 9/90 (page 3 of 5 pages)
<br /> ..� ;:
<br />
|