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. � 99 1065 ��
<br /> under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to
<br /> amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late
<br /> charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taYes, assessments,charges, fines and impositions attributable
<br /> to the Property which may attain priority over this Security InstrumPnt,and leasehold payments or ground
<br /> rents, if any. Borrower shall pay these obligations in the mannerprovided in paragraph2� or if not paid in
<br /> that manner,Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly
<br /> furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br /> directly,Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priarity over this Security Instrument unless
<br /> Borrower: (a)agrees in writing to the payment of the obligation securedby the lien in a manneracceptableto
<br /> Lender;(b)contests in good faith the lien by, or defends against enforcementof the lien in, legal proceedings
<br /> which in the Lender's opinion operateto prevent the enforcementof the lien; or(c)secures from the holder of
<br /> the lien an agreement satisfactory to Lender subordinating the lien to this Securiry Instrument. If Lender
<br /> determines that any part of the Properry is subject to a lien which may attain priority over this Security
<br /> Instrument,Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take
<br /> one or more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter
<br /> erected on the Property insured against loss by fire, hazards included within the term"e�rtended coverage" and
<br /> any other hazards,including floods or flooding, for which Lender requires insurance. This insurance shall be
<br /> maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the
<br /> insurance shall be chosenby Borrower subject to Lender's approval which shall not be unreasonablywithheld.
<br /> If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to
<br /> protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage
<br /> clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall
<br /> promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower
<br /> shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made
<br /> promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration
<br /> or repair of the Property damaged,if the restorationor repair is economically feasible and Lender's security is
<br /> not lessened. If the restorationor repair is not economically feasible or Lender's security would be lessened,
<br /> the insurance proceeds shall be applied to the sums secured by this Security Instrument,whether or not then
<br /> due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30
<br /> days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the
<br /> insurance�roceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by
<br /> this Security Instrument,whether or not then due. The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not
<br /> extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 ar change the
<br /> amount of the payments. If under paragraph2l the Property is acquiredby Lender, Borrower's right to any
<br /> insurance policies and proceeds resulting&om damage to the Property prior to the acquisition shall pass to
<br /> Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br /> residence within sixty days after the execution of this Security Instrument and shall continue to occupy the
<br /> Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
<br /> otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless eatenuating
<br /> circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the
<br /> Property, allow the Property to deteriorate,or commit waste on the Property. Borrower shall be in default if
<br /> any forfeiture action or proceeding,whether civil or criminal, is begun that in Lender's good faith judgment
<br /> could result in forfeiture of the Property or otherwise materially impair the lien created by this Security
<br /> Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in
<br /> paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br /> determination,precludes forfeiture of the Borrower's interest in the Property or other materialunpairment of
<br /> the lien createdby this Security Instrumentar Lender's security interest. Borrower shall also be in default if
<br /> Borrower,during the loan application process,gave materially false or inaccurateinformation or statementsto
<br /> Lender(or failed to provide Lender with any material information)in connection with the loan evidenced by
<br /> NEBRASKA-Single Family-Fannie Mae/Freddie Mac Uniform Instrument
<br /> Form 3028 9/90
<br /> Laser Forms Inc.(800)446-3555
<br /> LIFT#FNMA3028 3196 Page 3 of 7 Initials:�G r SL.T
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