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200401 &41
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within 60 days after the execution of this Security Instrument and shall 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 consent
<br />shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br />not destroy, 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 from
<br />deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or
<br />restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or
<br />damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property,
<br />Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes.
<br />Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the
<br />work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is
<br />not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender 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 />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material
<br />information) in connection with the Loan. Material representations include, but are not limited to, representations concerning
<br />Borrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there
<br />is a legal proceeding that might significantly affect Lender's interest in the Property and /or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain
<br />priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then
<br />Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under
<br />this Security Instrument, including protecting and /or assessing the value of the Property, and securing and /or repairing the
<br />Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over
<br />this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property
<br />and /or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property
<br />includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows,
<br />drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off.
<br />Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or
<br />obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section
<br />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,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a 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. If Lender required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in
<br />effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an
<br />alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the
<br />insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non - refundable loss
<br />reserve in lieu of Mortgage Insurance. Such loss reserve shall be non - refundable, notwithstanding the fact that the Loan is
<br />ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender
<br />can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender
<br />requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately
<br />designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of
<br />making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage
<br />Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non - refundable
<br />loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between
<br />Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section
<br />10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Borrower 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
<br />conditions that are satisfactory to the mortgage insurer and the other parry (or parties) to these agreements. These
<br />agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may
<br />have available (which may include funds obtained from Mortgage Insurance premiums.)
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, and reinsurer, any other
<br />entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be
<br />characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage
<br />insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in
<br />exchange for a 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 the Borrower has agreed to
<br />pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not
<br />increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle
<br />Borrower to any refund.
<br />(b) Any such agreements will not affect the rights Borrower has -if any- with respect
<br />to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law.
<br />These rights may include the right to receive certain disclosures, to . request and obtain
<br />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
<br />unearned at the time of such cancellation or termination.
<br />NEBRASKA - Singie Famiiy- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT For
<br />F16585.LMG (11/00)
<br />15028
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