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200303008
<br />not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a
<br />mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee.
<br />r [he event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lendermaymake proof
<br />It made promptly byBoffower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, shall be applic
<br />the restoration or repair is economically feasible and Lender's security is not le
<br />period, Lender shot the right to hold such insurance proceeds until Lent
<br />Property to ensure the work has been corn feted to Lender's satisfaction, provid
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a
<br />payments as the work is completed. Unless an agreement is made in writing or,
<br />on such insurance proceeds, Lender shall not be required to pay Borrower any i.
<br />for public adjusters, or other third parties, retained by Borrower shall not be pail
<br />the sole obligation of Borrower. If the restoration or repair is not economics
<br />lessened, the insurance proceeds shall be applied to the sums secured by this Se
<br />with the excess, if my, paid to Borrower. Such insurance proceeds shall be apt
<br />If Borrower abandons the Property, Lender may file, negotiate and sett:
<br />matters. If Borrower does not respond within 30 days to a notice from Lender th
<br />claim, then Lender may negotiate and settle the claim. The 30 -day period wil:
<br />event, or if Lender acquires the Property under Section 22 or otherwise, Borrow
<br />at or earnings on such proceeds. Fees
<br />of the insurance proceeds and shall be
<br />,asible or Lender's security would be
<br />y Instrument, whether or not then due,
<br />in the order provided for in Section 2.
<br />ngnis many Insurance proceeds In an amount not to exceed me amounts unpaid under me Note or this Security Instrument,
<br />and (b) any other of Borrower's rights (other than the ripJtI to my refund of unearned premiums paid by Borrower) under all
<br />insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may
<br />use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Now 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 of this 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 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 />Pr the Property from deteriorating or decreasing In value due to its condition. Unless it is determmed 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, 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 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 of the 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 />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 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 />(a) Borrower fails to perform the covenants and agreemen
<br />proceeding that might significantly affect Lender's interest in
<br />as a proceeding in bankruptcy, probate, for condemnation or
<br />over this Security Instrument or to enforce taws or regulatir
<br />may do and pay for whatever is reasonable or appropriate in
<br />Security Instrument, including protecting and/or assessing
<br />Property. Lender's actions can include, but are not limited to
<br />this Security Instrument; (b) appearing in court; and (c) pr
<br />Under this Security Instrument. If
<br />Security Instrument, (b) there is a legal
<br />fights under this Security Instrument (such
<br />ement of lien which may attain priority
<br />as abandoned the Property, then Lender
<br />paying any sums secured by a lien which has If riorityever
<br />; reasonable attorneys' fees to protect its interest in the
<br />Is secured position in a bankruptcy proceeding. Securing
<br />to make repairs, change locks, replace or board up doors
<br />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 bythis
<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 Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the 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 wac required to make senarau lv deaigmurd navmenic toward the mvmhmvc 1hr Mortaaoe Incom-
<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 ay to Lender the amount of the separately designated payments that were due when the insurance
<br />coverage ceased to be in effect Lender will accept, use and retain these payments as a non - refundable loss reserve in lieu of
<br />Mort gage Insurance. 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 If Mortgage 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 />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 -Single Family - Fannie Mme Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01 (page d of8pages)
<br />9754CV(1/02) 1665744
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