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4,
<br />200409896
<br />2431394
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right
<br />to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or
<br />as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender
<br />requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower
<br />obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the
<br />Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an
<br />additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
<br />make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing,
<br />any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to
<br />restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is
<br />not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance
<br />proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
<br />Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds
<br />for the repairs and restoration in a single payment or in a series of progress payments as the work is completed.
<br />Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance
<br />proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public
<br />adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security
<br />would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in
<br />the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim
<br />and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance
<br />carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30 -day period will begin
<br />when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise,
<br />Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed
<br />the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than
<br />the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the
<br />Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance
<br />proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<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
<br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in
<br />writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are
<br />beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property.
<br />Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the
<br />Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
<br />damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection
<br />with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the
<br />Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs
<br />and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance
<br />or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of
<br />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
<br />reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
<br />Borrower notice at the time of 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,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent
<br />NEBRASKA -- Single Family -- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1 /01
<br />Modified For VA
<br />nocU3NE6 (Page 6 of 14 pages)
<br />DOCU3NE6.VTX 05/03/2004
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