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200411881
<br />39433
<br />insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been
<br />completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may
<br />disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the
<br />work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on
<br />such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the
<br />insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically
<br />feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance
<br />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
<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
<br />begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or
<br />otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not
<br />to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights
<br />(other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies
<br />covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the
<br />insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this
<br />Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within 60 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 extenuating
<br />circumstances exist which are 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
<br />the 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
<br />connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or
<br />restoring the Property only if Lender has released proceeds for such purposes. 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 />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
<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
<br />consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to
<br />provide Lender with material information) in connection with the Loan. Material representations include, but
<br />are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a
<br />legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this
<br />Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
<br />enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations),
<br />or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or
<br />appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including
<br />protecting and /or assessing the value of the Property, and securing and/or repairing the Property. Lender's
<br />actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this
<br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mae UNIFORM INSTRUMENT Form 3028 1 /01
<br />DOCUKNEe6 (Page 6 of 14)
<br />.VTx oe/o9/2004
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