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200301126 coverage, not otherwise required by Lender, for damage to, or destruction ol; the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event ofloss, Burrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss ifnot made promptlyby Borrower. Unless Lender and Borrower otherwise agree in writing, any insuranceproaacts, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair ofthe Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that Such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made inwritingor Applicable Lawrequires intereat tobepaid an such insurance proceeds, Tender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out ofthe insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured bythis Security Instrument, whether or notthen due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may dq negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice From Lender that the insurance carrier has offered to settle a claim, then Lender stay negotiate and settle the claim. The 30 -day period will begin when the notice is given In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) wider all insurance policies covering the Property, insofar as such rights are applicable to the coverage ofthe Property. Lender may use the insurance proceeds either to repair Or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residenco for at least one year after the date of occupancy, unless I ender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste On the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repairthe Property ifdanaged to avoid further deteriomtiun or damage. If insurance or condemnation proceeds are paid at connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lowder has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series Of progress payments as the work is completed. Ifthe insurance or condemnation proceeds are not sufficient to repair or restore the Propmty, Borrower is not relieved ofeorrower's obligation for the completion of such repair or restoration. fender or its 2'ent may make reasonable entries upon and inspections ofthe Property. If it has reasonable cause, Lender may inepaa the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. b. Borrower's Leaa Application. Borrower shall be in default if, during the Loan application process, Borrower Or any persons or entities acting at the direction of Burrower or with Borrower's knowledge or consent gave materially take, misleading, or inaccumtc mfortna[ion or statements to Lender (or failed to provide Tender with nmterial information)in conncetion with the Loan Mate[ial representations include, but are not limited to, representations concerning Borrower's occupancy ofthe Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that mil ht significantly affect Lender's interest in the Propertyand/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement ofalien which may attain priority over this Security Instrin3et or to enforce laws or regulations), or (c) Burrower has abandoned the Properly, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value OC the Property, and securing and/or re pait','the Property. Lender's actions can include, but are not limited t0:lid paying any sums secured bye lien which has priority OVer [his Security Instrument; (b) appearing in coon; and (c) paying reasonable attorneys' Cees to protect its interest in the Property std /or rights under this Security Instrument, including rte secured position in a bankuptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building Or other code violations or dangerous conditions, and have utilities turned on or off. Alt hough Lander may take action under this Section 9, Lender dots not have to do so and is not under any duty Or Obligation to do so. It is agreed that Lender incurs nu liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument These amounts shall bear interest at the Note rate from the date o' disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is On a leasehold, Borrower shall complywith all the provisions ofthe lease. IfBorrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless lender agrees to the merger in writing 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases W be available from the mortgage insurer that previously provided such insurance and Burrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Burrower shall pay die premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cast substantially equivalent to die cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mongage Insurance coverage is not available, w Borroer shall continue to pay to lender the amount ofthe separately designated Payments that were due hen the insurance coverage ceased to be in effect Lender will accept, use and stain these payments as a non - refimdable loss reserve in lieuoC Mortgage Insurance. Such LOSS reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in Cull, and Lender shall not be required to pay Borrnwcr any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums Cur Mortgage Insurance if Lender required Mortgage Insurance as a condition of making the I ran and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premium required to maintain Mortgage Insurance in effect, or to provide a non - refundable loss reserve, until lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obliggation to pay interest at the rate provided in the Note. Mortgage Insurance rcinnburses Linder (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is nut a party to the Mortgage Insurance. NERRASKA— Single Parnily-- Fannin Maalrreddie Mac IN [FORM INSTRUM ENT F'orm3028 1/01 (FlngednfR 'ogee) 9714 CV 11 02) I(03725 (,010(0004,132)