|
200405737
<br />Loan ID # 768892
<br />the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property,
<br />Borrower is 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
<br />or prior 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, Borrower
<br />or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially
<br />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
<br />concerning 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 Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal
<br />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,
<br />then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and
<br />rights under this Security Instrument, including protecting and /or assessing the value of the Property, and securing
<br />and /or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a
<br />lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to
<br />protect its interest in the Property and /or rights under this Security Instrument, including its secured position in a
<br />bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs,
<br />change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code
<br />violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this
<br />Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender
<br />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
<br />payable, 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
<br />Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the
<br />merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower
<br />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
<br />Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage
<br />Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance
<br />previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage
<br />Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated
<br />payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these
<br />payments as a non - refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non - refundable,
<br />notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any
<br />interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance
<br />coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again
<br />becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to
<br />make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums
<br />required to maintain Mortgage Insurance in effect, or to provide a non - refundable loss reserve, until Lender's
<br />requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender
<br />providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects
<br />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 party (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, any reinsurer, any other entity,
<br />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
<br />mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the
<br />insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive
<br />reinsurance. " Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for
<br />Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />Initials: to
<br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01 (page S of I pages)
<br />NE1CM5 - 11062000 www.MortgageBankingSystems.com
<br />
|