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<br /> from Lender that the insurance carrier has offered to settle a claim, Lender may collect the insurance proceeds.
<br /> Lender may, in its sole and absolute discretion, and regardless of any impairment of security or lack thereof, use the
<br /> proceeds to repair or restore the Property or to pay the sums secured by this Security Instrument, whether or not then
<br /> due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in
<br /> writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments
<br /> referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is
<br /> acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property
<br /> prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately
<br /> prior to the acquisition. If Borrower obtains earthquake insurance,any other hazard insurance, or any other insurance
<br /> on the Property and such insurance is not specifically required by Lender, such insurance shall (i) name Lender as
<br /> loss payee thereunder, and (ii) be subject to the provisions of this paragraph 5.
<br /> Furthermore, in the event that Borrower shall elect to obtain any other hazard insurance not specifically
<br /> required by Lender, (including but not limited to, earthquake and hurricane insurance) with respect to the Property,
<br /> Borrower agrees to name Lender as loss payee thereunder and hereby pledges such policies and proceeds as further
<br /> security under this Security Instrument which shall be subject to the provisions of this paragraph 5.
<br /> 6. Preservation,Maintenance and Protection of the Property;Borrower's Loan Application;Leaseholds.
<br /> Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on
<br /> the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun
<br /> that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien
<br /> created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate,
<br /> as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good
<br /> faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of
<br /> the lien created by this Security Instrument or Lender's security interest. Borrower shall, at Borrower's own expense,
<br /> appear in and defend any action or proceeding purporting to affect the Property or any portion thereof or Borrower's
<br /> title thereto, the validity or priority of the lien created by this Security Instrument, or the rights or powers of Lender
<br /> or Trustee with respect to this Security Instrument or the Property. All causes of action of Borrower, whether
<br /> accrued before or after the date of this Security Instrument, for damage or injury to the Property or any part thereof,
<br /> or in connection with any transaction financed in whole or in part by the proceeds of the Note or any other note
<br /> secured by this Security Instrument by Lender, or in connection with or affecting the Property or any part thereof,
<br /> including causes of action arising in tort or contract and causes of action for fraud or concealment of a material fact,
<br /> are, at Lender's option, assigned to Lender, and the proceeds thereof shall be paid directly to Lender who, after
<br /> deducting therefrom all its expenses, including reasonable attorneys' fees, may apply such proceeds to the sums
<br /> secured by this Security Instrument or to any deficiency under this Security Instrument or may release any monies
<br /> so received by it or any part thereof, as Lender may elect. Lender may, at its option, appear in and prosecute in its
<br /> own name any action or proceeding to enforce any such cause of action and may make any compromise or settlement
<br /> thereof. Borrower agrees to execute such further assignments and any other instruments as from time to time may
<br /> be necessary to effectuate the foregoing provisions and as Lender shall request. Borrower shall also be in default
<br /> if Borrower, during the loan application process, gave materially false or inaccurate information or statements to
<br /> Lender(or failed to provide Lender with any material information) in connection with the loan evidenced by the Note,
<br /> including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal
<br /> residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease.
<br /> If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to
<br /> the merger in writing.
<br /> 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and
<br /> agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's
<br /> rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws
<br /> or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and
<br /> Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority
<br /> over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to
<br /> make repairs. Although Lender may take action under this paragraph 7, Lender is not required to do so. Any
<br /> amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest
<br /> from the date �f disbursement at the Note rate in effect from time to time and shall be payable, with interest, upon
<br /> notice from Lender to Borrower requesting payment.
<br /> 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured
<br /> by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect.
<br /> If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower
<br /> 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
<br /> an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not
<br /> available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance
<br /> premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept,
<br /> use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer
<br /> be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender
<br /> requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay
<br /> the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement
<br /> NEBRASKA Page 3 of 8 rrExxos2o (Rev.04/22/97)
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