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20011`763
<br />7. Preservatiou, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or
<br />impair (lie property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in
<br />the property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value
<br />due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
<br />condunnafion proceeds arc paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for
<br />repairing or restoring the property only it' Lender has released proceeds for such purposes. Lender may disburse proceeds for
<br />the repairs and restoration in it siuglc payment or in a series of progress payments as the work is completed. If the insurance or
<br />condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation
<br />for the completion of such repair or restoration.
<br />Lcndcr or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior
<br />to such an interior inspection specifying such reasonable cause.
<br />N. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or
<br />any persons or entities acting at the direction of Borrower 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 file Loan. Material representations include, but are not limited to, representations concerning Borrower's
<br />occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's h►tcrcst ill the Property and Rights Under this Security Instrument. If (a) Borrower fails
<br />to prrfornt the ruveneIIIS and agrccox nls contained in this Security Instrument, (b) there is a legal proceeding that might
<br />siguificautly alf'CO Lender's interest ill the I'ruperty and /pr rights under this Security Instrument (such as a proceeding in
<br />bankruptcy, probate, for condemnation or forfeiture, for enforcement of alien which may attain priority over this Security
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument,
<br />including protecting and /or assessing the value of the Property, and securing and /or repairing the Property. Lender's actions
<br />can include, but arc not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b)
<br />appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and /or rights under this
<br />SCCUriiv IttslrnmC'Itl., including its sccurcd position in a bankruptcy proceeding. Securing the Property includes, but is not
<br />limited to, entering the Property to stake repairs, change locks, replace or board up doors and windows, drain water from
<br />pipes, climinate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender
<br />may lake action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is
<br />agrrcd that Lcudcr incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Security Instrument. 'these amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon notice I'roru Lcudcr to Borrower requesting payment.
<br />If this Security Instrument is on it leasehold, Borrower shall comply with all the provisions of the lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />10. Mortgage Insurance. 11' Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall
<br />pay file premiums required to maintain fhc Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage
<br />required by Lcudcr ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the
<br />prcntiunts required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost
<br />substantially equivalent to thr cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage
<br />insurer SCICelcd by I_ender. 11'subsianlially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to
<br />pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in
<br />effect. Lender will accept, use and retain these payments as a non - refundable loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve shall he non - refundable, notwiUtstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
<br />required to pay Borrower any inlcresi or castings on such loss reserve. Lender can no longer require loss reserve payments if
<br />Morteagc Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender
<br />again hccuntes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage
<br />Insurance. II' I.cndcr required Mortgage Insurance as a condition of making the Loan and Borrower was required to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurance in effect., or to provide a non - refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends ill accordanec Willi any written agreement between Borrower and Lender providing for such termination or until
<br />icrntination is required by Applicable I,aw. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Nlortgauc Insurance rcinibru-SCS I.cndcr (or any entity that purchases the Note) for certain losses it may incur if
<br />Burrower does not repay the Loan as agreed. Burrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into
<br />agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions
<br />that arc satisfactory to the mortgage inSUrcr and the other party (or parties) to these agreements. These agreements may require
<br />the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may
<br />include funds obtained from Mortgagor Insurance premiums).
<br />Asa rrsuli of thcsc agreements, Lcndcr, any purchaser of the Note, another insurer, any reinsurer, any other entity, or
<br />acv all'iliatc of ally of, the foregoing, utav rcccivc (directly or indirectly) amounts that derive from (or might be characterized
<br />asj a portion of Borrower's payments for Murlgage Insurance, in exchange for sharing or modifying the mortgage insurer's
<br />risk, or reducing losses. II' such agreement provides that an affiliate of Lender takes a share of insurer's risk in exchange for a
<br />share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or
<br />any other lu•ms of the Loan. Such agreenicuts will not increase the amount Borrower will owe for Mortgage Insurance,
<br />and they %will not entitle Borrower to au. refund.
<br />(h) Any such agreements N% ill not affect the rights Borrower has --if any - -with respect to the Mortgage Insurance
<br />under the llumeuwucrs Protection Act of 1998 or any other law. These rights may include the right to receive certain
<br />disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
<br />automatically, and /or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such
<br />cancellalion or termination.
<br />11. Assignment of N iscellwieous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid to Lcndcr.
<br />II the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the
<br />restoration or repair is ccortomically feasible and Lender's security is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property
<br />to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly.
<br />Lcudcr stay pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. Unless all agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous
<br />Proceeds, Lcudcr shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically frasiblc or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Sccurity lusu-urnent, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous proceeds shall be applied in the order provided for in Section 2.
<br />lu the evcut. of a total taking, dCSIT- LICtilnl, or loss in value of the Property, the Miscellaneous Proceeds shall be applied
<br />to the sums sccurcd by this Security I IISII'UmCttl, whether or not then due, with the excess, if any, paid to Borrower.
<br />NEBRASKA Single Family Fannie Mae /Freddie Mac UNIFORM INSTRUMENT
<br />rm 302
<br />Ronk , n.� Vsteins, I n ., fit. Gloud, MN ForrnMD - I -NE 8/17;2000 (page 4 0f 7pages
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