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• 202506444
<br />payee.
<br />(d) Proof of Loss; Application of Proceeds. In the event of loss, Borrower must give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, will be applied to restoration or repair of the Property,
<br />if Lender deems the restoration or repair to be economically feasible and determines that Lender's security will not be
<br />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 not
<br />limited to, licensing, bond, and insurance requirements) provided that such inspection must be undertaken promptly.
<br />Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as
<br />the work is 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, to the person
<br />repairing or restoring the Property, or payable jointly to both. Lender will not be required to pay Borrower any interest
<br />or earnings on such insurance proceeds unless Lender and Borrower agree in writing or Applicable Law requires
<br />otherwise. Fees for public adjusters, or other third parties, retained by Borrower will not be paid out of the insurance
<br />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 be lessened by
<br />such restoration or repair, the insurance proceeds will be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds will be applied in the
<br />order that Partial Payments are applied in Section 2(b).
<br />(e) Insurance Settlements; Assignment of Proceeds. If Borrower abandons the Property, Lender may file,
<br />negotiate, and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to
<br />a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the
<br />claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under
<br />Section 26 or otherwise, Borrower is unconditionally assigning to Lender (i) Borrower's rights to any insurance proceeds
<br />in an amount not to exceed the amounts unpaid under the Note and this Security Instrument, and (ii) any other of
<br />Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance
<br />policies covering the Property, to the extent that such rights are applicable to the coverage of the Property. If Lender
<br />files, negotiates, or settles a claim, Borrower agrees that any insurance proceeds may be made payable directly to
<br />Lender without the need to include Borrower as an additional loss payee. Lender may use the insurance proceeds either
<br />to repair or restore the Property (as provided in Section 5(d)) or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Borrower must occupy, establish, and use the Property as Borrower's principal residence within
<br />60 days after the execution of this Security Instrument and must continue to occupy the Property as Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent will not be unreasonably withheld, or unless extenuating circumstances exist that are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance, and Protection of the Property; Inspections. Borrower will not destroy, damage, or
<br />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 must maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless Lender determines pursuant to Section 5 that repair or restoration is
<br />not economically feasible, Borrower will promptly repair the Property if damaged to avoid further deterioration or
<br />damage.
<br />If insurance or condemnation proceeds are paid to Lender in connection with damage to, or the taking of, the
<br />Property, Borrower will be responsible for repairing or restoring the Property only if Lender has released proceeds for
<br />such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of
<br />progress 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. If the insurance or condemnation
<br />proceeds are not sufficient to repair or restore the Property, Borrower remains obligated to complete such repair or
<br />restoration.
<br />Lender may make reasonable entries upon and inspections of the Property. If Lender has reasonable cause, Lender
<br />may inspect the interior of the improvements on the Property. Lender will give Borrower notice at the time of or prior to
<br />such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower will be in Default if, during the Loan application process, Borrower or
<br />any persons or entities acting at Borrower's direction 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, including, but not limited to, overstating Borrower's income or assets, understating or failing
<br />to provide documentation of Borrower's debt obligations and liabilities, and misrepresenting Borrower's occupancy or
<br />intended 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.
<br />(a) Protection of Lender's Interest. If: (i) Borrower fails to perform the covenants and agreements contained in this
<br />Security Instrument; (ii) there is a legal proceeding or government order that might significantly affect Lender's interest
<br />in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for
<br />condemnation or forfeiture, for enforcement of a lien that has priority or may attain priority over this Security
<br />Instrument, or to enforce laws or regulations); or (iii) Lender reasonably believes that Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the
<br />Property and/or rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and securing and/or repairing the Property. Lender's actions may include, but are not limited to: (I) paying any sums
<br />secured by a lien that has priority or may attain priority over this Security Instrument; (II) appearing in court; and (III)
<br />paying: (A) reasonable attorneys' fees and costs; (B) property inspection and valuation fees; and (C) other fees incurred
<br />for the purpose of protecting Lender's interest in the Property and/or rights under this Security Instrument, including its
<br />secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, exterior and interior
<br />inspections of the Property, entering the Property to make repairs, changing locks, replacing or boarding up doors and
<br />windows, draining water from pipes, eliminating building or other code violations or dangerous conditions, and having
<br />utilities turned on or off. Although Lender may take action under this Section 9, Lender is not required to do so and is
<br />not under any duty or obligation to do so. Lender will not be liable for not taking any or all actions authorized under this
<br />Section 9.
<br />(b) Avoiding Foreclosure; Mitigating Losses. If Borrower is in Default, Lender may work with Borrower to avoid
<br />foreclosure and/or mitigate Lender's potential losses, but is not obligated to do so unless required by Applicable Law.
<br />Lender may take reasonable actions to evaluate Borrower for available alternatives to foreclosure, including, but not
<br />limited to, obtaining credit reports, title reports, title insurance, property valuations, subordination agreements, and
<br />third -party approvals. Borrower authorizes and consents to these actions. Any costs associated with such loss
<br />mitigation activities may be paid by Lender and recovered from Borrower as described below in Section 9(c), unless
<br />prohibited by Applicable Law.
<br />(c) Additional Amounts Secured. Any amounts disbursed by Lender under this Section 9 will become additional
<br />debt of Borrower secured by this Security Instrument. These amounts may bear interest at the Note rate from the date
<br />of disbursement and will be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />(d) Leasehold Terms. If this Security Instrument is on a leasehold, Borrower will comply with all the provisions of
<br />NEBRASKA-Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 07/2021
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