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<br />coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a
<br />standard mortgage clause and shall time Lender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prom t notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not 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 ta restoration or repair of the 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 ripJtI to hold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Propeto ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
<br />prompt y. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />for public 3 usteIs, or omcr mir0 parties, retained by Borrower shall not be paid out ofthe insurance proceeds and shall be
<br />the sole obligation of Borrower. ]f the restoration or repair is not economreally feasible or Lender's security would be
<br />lessened, the insurance proceeds shat l be applied to the sums secured by this Security Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied m the order provided for in Section 2.
<br />If Borrower abandons the Properly, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. IfBOrrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered m settle a
<br />claim, then Lender may negotiate and settle the claim. The 30 -day period will begin when the notice is given. 1. e ther
<br />event, or ifl.erider acquires the Property andcr Section 22 m otherwise, Borrower hereby assigns m Lender (a) Borrower's
<br />insurance policies covering the 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 residencewithin
<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 />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, 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[ he repairs and restoration in a single payment or in a series
<br />of progress payments as the work is completed. Ifthe insurance or condemnation proceeds are not sufficient to repair or
<br />restore [he Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender or rts agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause,
<br />Lender may inspect the interior of the im rovements on the Property. Lender shall give Borrower notice at the time of or
<br />prior [o 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 a[ 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 [he loan. Material representations include, but are not firm 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 Ins trume nt (s uc
<br />h
<br />as a proceeding in bankruptcy, probate, for condemnation or forfcimre, for enforcement ofa lien which may attain priority
<br />over this Security instrument or m enforce laws or regulations), or (c) Borrower has abandoned the Properly, then lender
<br />may do and pay for whatever is reasonable or apProf ate m protect Lender's interest in the Property and rights under [his
<br />Security instrument, including protecting an or assessing the value of the Property, and securing and/or repairing the
<br />Properly. Lender's actions can include, but are not limited to: (a) paying any sums secured bya lien which has priority over
<br />this Security Instrument; (b) appearing in court ; and (o) paying reasonable attorneys' fees to protect its interest in the
<br />the Property Includes, but is not limited to, entering the Property to make repairs, change looks, repla ard
<br />ce or bo up doors
<br />and windows, drain water from pipes, eliminate but 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 Milhorized 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 data 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 Mort gage Insurance in effect If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from the mortgage insurer that oreviously movided such
<br />Borrower shall pay the premiums required to obtain coverage substantially equi
<br />in effect, at a cast substantially equivalent to the cost to Borrower of the Mortg
<br />alternate mort gage insurer selected by Lender. If substantially equivalent Me
<br />Borrower shall continue w payto Lender the amount of the separately designate
<br />coverage ceased to be in effect Lender will accept, use and retain these ppaymen
<br />Mortgage Insurance. Such lass reserve shall be non - refundable, notwithstandin
<br />full, and Lender shall not be required to pay Borrower any interest or earnings
<br />require loss reserve payments If Mortgage Insurance coverage (in the amoun
<br />provided by an insurer selected by Lender again becomes available, is obtained,
<br />payments toward the premiums for Mortgage Insurance. If Lender required Me
<br />Loan and Borrower was required to make separately designated payments tow
<br />Borrower shall pay the premiums required to maintain Mortgage Insurance in
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accord
<br />Borrower and Lender providing for such termination or until termination is re
<br />Section 10 affects Borrower's obligation to pay interest at the rate provided in
<br />Mortgage Insurance reimburses Lender (or any entity that purchases
<br />Borrower does not repay the Loan as agreed. Borrower 1s not a party to the Mt
<br />age Insurance previously in effect, from an
<br />rigage Insurance coverage is not available,
<br />d payments thin were due when the insurance
<br />Is as a non - refundable loss reserve in lieu of
<br />g the fact that the Loan is ultimately paid in
<br />on such loss reserve. Lender can no longer
<br />I and for the period that Lender requires)
<br />and Lender requires separately designated
<br />rtgage Insurance as a condition ofmakmg the
<br />aid the premiums for Mortgagge Insurance,
<br />effecS or to provide a non- refirndable loss
<br />ante with any written agreement between
<br />gaired by Applicable Law. Nothinginthis
<br />he Note.
<br />the Note) for certain losses it may incur if
<br />NEBRASKA -- Single Faadly- Fannie M.e Freddie Mac UNIFORM INSTRUMENT Form3038 Ilm lyagesof8pages)
<br />9754 CV (1103) 1668441
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