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202404029
<br />LOAN #: 254075
<br />5. Property Insurance.
<br />(a) Insurance Requirement; Coverages. Borrower must keep the improvements now existing
<br />or subsequently erected on the Property insured against loss by fire, hazards included within the term
<br />"extended coverage," and any other hazards including, but not limited to, earthquakes, winds, and floods,
<br />for which Lender requires insurance. Borrower must maintain the types of insurance Lender requires in the
<br />amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pur-
<br />suant to the preceding sentences can change during the term of the Loan, and may exceed any minimum
<br />coverage required by Applicable Law. Borrower may choose the insurance carrier providing the insurance,
<br />subject to Lender's right to disapprove Borrower's choice, which right will not be exercised unreasonably.
<br />(b) Failure to Maintain Insurance. If Lender has a reasonable basis to believe that Borrower
<br />has failed to maintain any of the required insurance coverages described above, Lender may obtain
<br />insurance coverage, at Lender's option and at Borrower's expense. Unless required by Applicable Law,
<br />Lender is under no obligation to advance premiums for, or to seek to reinstate, any prior lapsed cover-
<br />age obtained by Borrower. Lender is under no obligation to purchase any particular type or amount of
<br />coverage and may select the provider of such insurance in its sole discretion. Before purchasing such
<br />coverage, Lender will notify Borrower if required to do so under Applicable Law. Any such coverage will
<br />insure Lender, but might not protect Borrower, Borrower's equity in the Property, or the contents of the
<br />Property, against any risk, hazard, or liability and might provide greater or lesser coverage than was
<br />previously in effect, but not exceeding the coverage required under Section 5(a). Borrower acknowledges
<br />that the cost of the insurance coverage so obtained may significantly exceed the cost of insurance that
<br />Borrower could have obtained. Any amounts disbursed by Lender for costs associated with reinstating
<br />Borrower's insurance policy or with placing new insurance under this Section 5 will become additional
<br />debt of Borrower secured by this Security Instrument. These amounts will bear interest at the Note
<br />rate from the date of disbursement and will be payable, with such interest, upon notice from Lender to
<br />Borrower requesting payment.
<br />(c) Insurance Policies. All insurance policies required by Lender and renewals of such policies:
<br />(i) will be subject to Lender's right to disapprove such policies; (ii) must include a standard mortgage
<br />clause; and (iii) must name Lender as mortgagee and/or as an additional loss payee. Lender will have
<br />the right to hold the policies and renewal certificates. If Lender requires, Borrower will promptly give to
<br />Lender proof of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage,
<br />not otherwise required by Lender, for damage to, or destruction of, the Property, such policy must include
<br />a standard mortgage clause and must name Lender as mortgagee and/or as an additional Toss payee.
<br />(d) Proof of Loss; Application of Proceeds. In the event of loss, Borrower must give prompt notice
<br />to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.Any
<br />insurance proceeds, whether or not the underlying insurance was required by Lender, will be applied to
<br />restoration or repair of the Property, if Lender deems the restoration or repair to be economically feasible
<br />and determines that Lender's security will not be lessened by such restoration or repair.
<br />If the Property is to be repaired or restored, Lender will disburse from the insurance proceeds any
<br />initial amounts that are necessary to begin the repair or restoration, subject to any restrictions applicable
<br />to Lender. During the subsequent repair and restoration period, Lender will have the right to hold such
<br />insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work
<br />has been completed to Lender's satisfaction (which may include satisfying Lender's minimum eligibility
<br />requirements for persons repairing the Property, including, but not limited to, licensing, bond, and insurance
<br />requirements) provided that such inspection must be undertaken promptly. Lender may disburse proceeds
<br />for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed, depending on the size of the repair or restoration, the terms of the repair agreement, and
<br />whether Borrower is in Default on the Loan. Lender may make such disbursements directly to Borrower,
<br />to the person repairing or restoring the Property, or payable jointly to both. Lender will not be required to
<br />pay Borrower any interest or earnings on such insurance proceeds unless Lender and Borrower agree
<br />in writing or Applicable Law requires otherwise. Fees for public adjusters, or other third parties, retained
<br />by Borrower will not be paid out of the insurance proceeds and will be the sole obligation of Borrower.
<br />If Lender deems the restoration or repair not to be economically feasible or Lender's security would
<br />be lessened by such restoration or repair, the insurance proceeds will be applied to the sums secured
<br />by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such
<br />insurance proceeds will be applied in the order that Partial Payments are applied in Section 2(b).
<br />(e) Insurance Settlements; Assignment of Proceeds. If Borrower abandons the Property, Lender
<br />may file, negotiate, and settle any available insurance claim and related matters. If Borrower does not
<br />respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim,
<br />then Lender may negotiate and settle the claim. The 30 -day period will begin when the notice is given.
<br />In either event, or if Lender acquires the Property under Section 26 or otherwise, Borrower is uncondi-
<br />tionally assigning to Lender (i) Borrower's rights to any insurance proceeds in an amount not to exceed
<br />the amounts unpaid under the Note and this Security Instrument, and (ii) any other of Borrower's rights
<br />(other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies
<br />covering the Property, to the extent that such rights are applicable to the coverage of the Property. If
<br />NEBRASKA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (MERS) Form 3028 07/2021
<br />ICE Mortgage Technology, Inc. Page 6 of 14 NE21EDEED 0222
<br />NEEDEED (CLS)
<br />08/16/2024 11:23 AM PST
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