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20040134'
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or
<br />amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower,
<br />Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might
<br />provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the
<br />insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have
<br />obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower
<br />secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br />disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as
<br />an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender
<br />requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower
<br />obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the
<br />Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an
<br />additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
<br />make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing,
<br />any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to
<br />restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is
<br />not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance
<br />proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
<br />Lender's satisfaction, provided that such inspection shall 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 completed.
<br />Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance
<br />proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public
<br />adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security
<br />would be lessened, the insurance proceeds shall 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 shall be applied in
<br />the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and
<br />related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier
<br />has offered to settle a claim, then Lender may negotiate and settle the claim. The 30 -day period will begin when
<br />the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower
<br />hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts
<br />unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to
<br />any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as
<br />such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair
<br />or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then
<br />due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in
<br />writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are
<br />beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or
<br />not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property
<br />from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that
<br />repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid
<br />NEBRASKA - Single Family - Fannie Mae /Freddie Mac UNIFORM INSTRUMENT WITH MERS Form 3028 (01/01)
<br />MERS 3028
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