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coverage, not
<br />standard moat
<br />of loss if not made promptly by Boom
<br />whether or not the underlying insuran
<br />the restoration or repair is economica
<br />period, Lender shall have the right to
<br />Proper to ensure the work has been,
<br />prompt y. Lender may disburse pro,
<br />Payments as the work is completed. L
<br />I ender, for damage to, or destruction
<br />Line Lender as mortgagee and /or as an
<br />r shall give prompt notice to the insurat
<br />wer. Unless Lander and Borrower other
<br />ce was required by Lender, shall be apt
<br />200301228
<br />such policy shall include a
<br />,Id such insurance proceeds until Lender has had an opp
<br />f leted to Lender's satisfaction, provided that such hapec
<br />for the repairs mid restoration in a single payment or
<br />ns an agreement is made in writing or Applicable Law rec
<br />not be required to pay Borrower any interest or earnings
<br />retained by Borrower shall not be paid out of the insurmu
<br />the sole 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 the excess, ifany, 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 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 tinder the Note or this Security Instrument,
<br />and (b) any other of Borrower's rights (other than the rigght to any refund of unearned premiums paid by Borrower) coder all
<br />insurance policies covering the Property, insofar as suclr rights are applicable to the coverage ofthe Property. Londer 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 die 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. If insurance 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 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 [he work is Completed. Ifthe insurance or condemnation proceeds are not sufficient to repair or
<br />restore the Property, Borrower is not relieved nfBorrowcr's obligation for the completion ofsuch repair or restoration.
<br />Lender or its agent nnay 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. (ender shall give Borrower notice at the time ofor
<br />prior to such an mtcrior inspection specitymg such reasonable cause.
<br />8. Borrower's Loan Application. Rormwcr shall be in default if, during the Loan application process,
<br />Borrower or any persons or cnlilics acting o[ the direction of Borrower or with Borrower's knowledge or consent gave
<br />matuially false, nusleading or inaccurate information or statements to Lender (or failed to provide Lender with material
<br />information) in connection wdh the Loan. Material representations include, but are not limited to, representations concerning
<br />Borrower's occupancy of the Property as Borrower's pprincipal residence.
<br />Y. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If
<br />(a) Borrower fails to perform the covenarts and agreements contained in this Security Instrument, (b) there is a legal
<br />Len
<br />proceeding that might significantly affect der 's interestinthe Property mid /or rights under this Security lnsrrument (such
<br />as a proceeding in bankruptcy, probate, far condemnation or forfeiture, fir enforcement ufa Bert which may attain priority
<br />over this Security Instrument or m enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or a propriate 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 lien which has priority over
<br />this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' tees to protect its interest In the
<br />Property and /or Lights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing
<br />the Property includes, but is not limited to, entering, One Property to make repairs, change locks, replace or board up doors
<br />and windows, drain water from pipes, eliminate budding 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 tinder 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 ofRorrower secured by this
<br />Securitylnstrument. These amounts shall bear interest at the Note rate from the date ofelisbursement 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 conhplywith all the provisions ofthe lease. IfBorrower
<br />acquires fee title to the Property, the leasehold and the tee title shall not merge unless Lender agrees to the merge 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 substantially equivalent to the Mortgage Insurance previously
<br />in effect, at a Cost substantially equivalent to the cost to Borrower ofthe Mortgage Insurance previously in effect, from an
<br />alternate mortgage; Insurer selected by Lender. lfsubstantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance
<br />coverage ceased lobe me ect. Leander will accept, use and retain these payments as a non - refundable loss reserve in lieu of
<br />Mortgage Insurance Such loss reserve shall be non - refundable, notwithstanding the fact that the Loan is ultimately paid in
<br />fill, 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 Mcargage Insurance coverage (in the amount and ter the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires sepuatelydesignated
<br />payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition ofmakmgtre
<br />Loan and Borrower wax required to make separately designated payments inward 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 1 gnder (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 patty to the Mortgage Insurance.
<br />nder maymake proof
<br />y insurance proceeds,
<br />air of the Properly, if
<br />:pair mid restoration
<br />Inity to inspect such
<br />shall be undertaken
<br />a series of progress
<br />NEBRASKA Family—FannieMae/Fre&Ht Mac UN 1 FORM INS[RUM ENT Form.1029 1101 (page 4 of8pagcs)
<br />9i54 CV It 02) 1647114
<br />GOTO(000408W
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