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<br />coverage, no[ otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a
<br />standard Mottgage clause and shall name Iznder as mortgagee and/or as an additional loss payee.
<br />In the event ofloss, Borrower shall give prom t notice to the insurance carrier and Lender. Lender may make proof
<br />ofloss ifnot made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair ofthe Property, it
<br />the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have die rift to hold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Property to ensure the work has been completed to Lender's satisfact ion, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />payments as the work is camp feted. Unless an agreement its made in writing or Applicable law requires interest to be paid
<br />on such'.uisurnnce proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower shall not be paid out ofthe insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not economically tensible or Lender's security would be
<br />lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,
<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 Under acquires the Property under Section 22 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 righuo any refund of unearned premiums paid by Borrower) under all
<br />insurance policies covering the Property, insofar as site ch rights are applicable to the coverage of the Property. Under 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. Occupancy. Borrower shall occupy, establish, and use the Properly as Borrower's principal residence within
<br />60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the data
<br />of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br />extenuating circumstances exist which are beyond Borrower's control.
<br />7. 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
<br />on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to
<br />prevent 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 damaged to
<br />avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, orthe
<br />taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or
<br />restore the Property, 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 ofthe 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 />S. 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 gave
<br />materially false, misleading, or inaccurate information or statements to Under (or failed to provide Lender with material
<br />information) In connection with the Loan. Material representations include, but are net limits representations concerning
<br />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
<br />(a) 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 Propert , and/or rights under this Security Instrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of lien which may attain priority
<br />over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<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 priority over
<br />this Security Instrument (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the
<br />Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing
<br />the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors
<br />and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities
<br />turned on or off . Although Lender may take action under this Section 9, Lender does not have to do so and is not under any
<br />dutyor obligation to do so. It is agreed that Under incurs no liability for not taking any or all actions authorized under this
<br />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 payable,
<br />with such interest, upon notice from finder to Borrower requestin6, payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions ofthe lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless Under agrees to the merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to maintain the Mort go Insurance in effect. if, for any reason, the Mortgage;
<br />Insurance coverage required by Lender ceases to be available tiom the mortgage insurer that previously provided such
<br />in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an
<br />alternate mortgage usurer selected by Lender. Ifsubstantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to payto Lender the amount ofthe separately designated payments that were due when the insurance
<br />coverage ceased to be in c ect. Lender will accept, use and retainthesepayments as a non- reandable loss reserve in lieu of
<br />Mortgagelnsurance. Such loss reserve shall be non- rehindable, notwithstanding the fact that the Loan is ultimately paid in
<br />full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer
<br />require loss reserve payments if Mortgage Insurance coversge (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and fender requires separately designated
<br />payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition ofmakingthe
<br />Loan and Borrower was required to make separately designated payments toward the premiums for Margate Insurance,
<br />Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non- re andable loss
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between
<br />Borrower and Lender providing for such termination or until termination is required by Applicable Iaw. Nothing in this
<br />Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Iznder (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 />NEBRASKA SinSle Pamily- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Form3028 1 /01 (f,,46 JNpnges)
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