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coverage, not
<br />standard mort
<br />200300255
<br />to, or destruction of, the Property, such policy shall include a
<br />agee and/or as an additional loss Payee.
<br />In the event of loss, Borrower shall give prompt 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, if
<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 the right 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 completed. Unless an agreement is made in writing or Applicable law requires interest to be paid
<br />on such insurance proceeds, Lender shall no[ be required to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained byBorrower shall not be paid out ofthe insurance proceeds and shall be
<br />[he sale obligation of Borrower if the restoration or repair is not economically feasible 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 />with [he excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />lfBorrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower does no[ respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a
<br />claim, [hen Lender may negotiate and settle [he claim. The 30 -day period will begin when the notice is given. In either
<br />event, or ifLender acqures the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
<br />rights to any insurance proceeds in an amount notto exceed the amounts unpaid under the Note or this Security Instrument,
<br />and (b) anyo[harofBOrrower'siights (other than [ha ripJ�I to any refund ofunearned premiums paid by Borrower) under all
<br />insurance policies covcring[he Property, insofar as such rights are applicable to the coverage ofthe 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. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
<br />60 days after the execution ofthis Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date
<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 ofthe 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 ifdamaged to
<br />avoid further deterioration or damage. lfinsurance or condemnation proceeds are paid in connection with damage to, or the
<br />taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only ifLender has released
<br />proceeds for such purpose s. Lender maydisbursc proceeds forthe repairs and restoration in as in de payment or inaseries
<br />ofpmgress payments as the work is completed. Ifthe insurance or condemnation proceeds are not sufficient to repair or
<br />restore the Property, Borrower is not relieved of Borrower's obligation far [he 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 impprovements on the Property. Lender shall give Borrower notice at he time of or
<br />prior to such an Interior inspection specitying such reasonable cause.
<br />It Borrower's Loan Application. Borrower shall be in default if, during the Loan a placation 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 Lender (or failed to Provide Lender with material
<br />information) in connection with the Loan. Material representations include, but are not limited to, representations concerning
<br />Borrower's occupancy ofthe 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 Property and/or rights under this Security Instrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement ofa 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 />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 priority over
<br />this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the
<br />ZProperty and/or rights under this Security instrument, including its secured position in a bankruptcy proceeding. Securing
<br />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 />duty or obligation to do so. It is agreed that Lender 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 mounts shall bear interest at the Note rate from the date ofdisbursement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />Ifthis Security Instrument is on a leasehold, Borrower shall comply with all the provisions ofthe lease. IfBorrower
<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 />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 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 Insurance,
<br />Borrower shall pay the premiums required to obtain coverage substantial ly equivalent to the Mortgage Insurance previously
<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 insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to payto Lender the amount ofthe separately designated payments thin were due when the insurance
<br />coverage ceasedw be in effect Lender will accept, use and retain these payments as a non - refundable loss reserve in lieu of
<br />Mortgagelnsurance. Such loss reserve shall be non- refundable, 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 1f Mort(,�age Insurance coverage (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Mortgage Insurance. ]£Lender required Mortgage Insurance as a condition ofmakmg the
<br />Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to maintain Mortgage insurance in effect, or to provide a non - refundable 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 law. Nothing in this
<br />Section 10 affects 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 />NEBRASKA- Singlc Family- Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form3028 1 /01 (page4of8pag )
<br />9754 CV (1/02) 1635861
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