|
2004115/0
<br />the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the
<br />excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a
<br />claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either
<br />event, or if Lender acquires the Property under Section 21 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
<br />rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument,
<br />and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all
<br />insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may
<br />use the insurance 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. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower
<br />is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not
<br />economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If
<br />insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be
<br />responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may
<br />disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is
<br />completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not
<br />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
<br />prior to such an interior inspection specifying such reasonable cause.
<br />7. 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 false,
<br />nusleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
<br />connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's
<br />occupancy of the Property as Borrower's principal residence.
<br />8. 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 proceeding
<br />that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a
<br />proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which has or may attain priority
<br />over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this
<br />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 or may attain
<br />priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest
<br />in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding.
<br />Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up
<br />doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have
<br />utilities turned on or off. Although Lender may take action under this Section 8, Lender does not have to do so and is not
<br />under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized
<br />under this Section 8.
<br />Any amounts disbursed by Lender under this Section 8 shall become additional debt of Borrower secured by this
<br />Security Instrument if allowed under Applicable Law. These amounts shall bear interest at the Note rate from the date of
<br />disbursement and shall be 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 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 />9. 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.
<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 />Initials: _UYK
<br />Nebraska Deed of Trust –Single Family - Secondary Lie„ Form 3001 01/01
<br />—The Compliance Source, Inc. — Page 6 of 11 itlotMi 1041
<br />www.QOMONUrASOUTCp.COm 02001 The Complkince Soww. Inc.
<br />ITEM 26227L6 (0204) $30174 e, Im.
<br />
|