|
202405367
<br />Within 10 days after the date on which that notice is given, Borrower must satisfy the lien or take one or more of the
<br />Required Actions.
<br />5. Property Insurance.
<br />(a) Insurance Requirement; Coverages. Borrower must keep the improvements now existing or subsequently
<br />erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any
<br />other hazards including, but not limited to, earthquakes, winds, and floods, for which Lender requires insurance.
<br />Borrower must maintain the types of insurance Lender requires in the amounts (including deductible levels) and for
<br />the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term
<br />of the Loan, and may exceed any minimum coverage required by Applicable Law. Borrower may choose the insurance
<br />carrier providing the insurance, subject to Lender' s right to disapprove Borrower' s choice, which right will not be
<br />exercised unreasonably.
<br />(b) Failure to Maintain Insurance. If Lender has a reasonable basis to believe that Borrower has failed to
<br />maintain any of the required insurance coverages described above, Lender may obtain insurance coverage, at Lender' s
<br />option and at Borrower' s expense. Unless required by Applicable Law, Lender is under no obligation to advance
<br />premiums for, or to seek to reinstate, any prior lapsed coverage obtained by Borrower. Lender is under no obligation
<br />to purchase any particular type or amount of coverage and may select the provider of such insurance in its sole
<br />discretion. Before purchasing such coverage, Lender will notify Borrower if required to do so under Applicable Law.
<br />Any such coverage will insure Lender, but might not protect Borrower, Borrower' s equity in the Property, or the
<br />contents of the 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 that the cost
<br />of the insurance coverage so obtained may significantly exceed the cost of insurance that Borrower could have
<br />obtained. Any amounts disbursed by Lender for costs associated with reinstating Borrower' s insurance policy or with
<br />placing new insurance under this Section 5 will become additional . debt of Borrower secured by this Security
<br />Instrument. These amounts will bear interest at the Note rate from the date of disbursement and will be payable, with
<br />such interest, upon notice from Lender to Borrower requesting payment.
<br />(c) Insurance Policies. All insurance policies required by Lender and renewals of such policies: (i) will be
<br />subject to Lender' s right to disapprove such policies; (ii) must include a standard mortgage clause; and (iii) must name
<br />Lender as mortgagee and/or as an additional loss payee. Lender will have the right to hold the policies and renewal
<br />certificates. If Lender requires, Borrower will promptly give to Lender proof of paid premiums and renewal notices.
<br />If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction
<br />of, the Property, such policy must include a standard mortgage clause and must name Lender as mortgagee and/or
<br />as an additional loss payee.
<br />(d) Proof of Loss; Application of Proceeds. In the event of loss, Borrower must give prompt notice to the
<br />insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Any insurance
<br />proceeds, whether or not the underlying insurance was required by Lender, will be applied to restoration or repair
<br />of the Property, if Lender deems the restoration or repair to be economically feasible and determines that Lender' s
<br />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 initial amounts
<br />that are necessary to begin the repair or restoration, subject to any restrictions applicable to Lender. During the
<br />subsequent repair and restoration period, Lender will have the right to hold such insurance proceeds until Lender has
<br />had an opportunity to inspect such Property to ensure the work has been completed to Lender' s satisfaction (which
<br />may include satisfying Lender' s minimum eligibility requirements for persons repairing the Property, including, but
<br />not limited to, licensing, bond, and insurance requirements) provided that such inspection must be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />payments as the work is completed, depending on the size of the repair or restoration, the terms of the repair
<br />agreement, and whether Borrower is in Default on the Loan. Lender may make such disbursements directly to
<br />Borrower, to the person repairing or restoring the Property, or payable jointly to both. Lender will not be required
<br />NEBRASKA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (MERS) ;, DocMagic
<br />Form 3028 07/2021
<br />Page 7 of 19
<br />
|