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200304.985
<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 name Lender as mortgagee 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 />of loss if or made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlymg insurance was required by Lender, shall be applied to 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 rip}�I to hold Such insurance proceeds until Lender has had an opportunity to inspect such
<br />Pro erlyto ensure the work has been completed to Lender's satisfaction, 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 not be required to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lenders 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, if any, 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 scale 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 Under 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 under the Note or this Security Instrument,
<br />and (h) any other of Borrower's rights (other than the ripJ�t to any 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 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 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 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 m 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 onl� if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration In a singe 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 Prouertv. Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender may inspect the
<br />prior to such an Interior
<br />S. Borrowei
<br />9. Prefer
<br />(a) Borrower fails to
<br />proceeding that tai
<br />as a proceeding m ,
<br />over tltis Security Ins
<br />terior of the improvements on
<br />spaction specifying such roast
<br />Loan Application. Bonin
<br />or entities acting at the direct
<br />g, or inaccurate mfonnation o
<br />,with the Loan. Material repre
<br />the Property as Borrower's pr
<br />of Lender's Interest in the
<br />orm the covenants and agree
<br />ificantly affect lender's intere
<br />ptcy, probate, for condemnatie
<br />ent or to enforce laws or regul
<br />ocr Is reasonable or approprial
<br />iding protecting and/or assess
<br />can include, but are not limile
<br />(b) appearing in court; and (I
<br />cause,
<br />e of or
<br />II be in default if, during the Loan a placation process,
<br />trrower or with Borrower's knowledge or consent gave
<br />tents to Lender (or failed to provide Lender with material
<br />ms Include, but are not limlad to, representations concerning
<br />residence.
<br />,rty and Rights Under this Security Instrument. If
<br />xmitained in this Security Instrument, (b) there is a legal
<br />Property and/or rights under this Security Instrumem (such
<br />failure, for enforcement ofalien which may attain priority
<br />or (c) Borrower has abandoned the Property, then Lender
<br />elect Lender's interest in the Property and rights under this
<br />value of the Property, and securing and/or repairing the
<br />l paying any sums secured by a lien which has priorityover
<br />$ reasonable attorneys' fees to protect its interest In the
<br />Its secured position in a bmkruptev moceedina. Securing
<br />the Property includes, but is not limited to, entering the Propenyto make repairs, change locks, replace or hoard up doors
<br />and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have milities
<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 anounts 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 Mortggage Insurance in effect. If, for any reason, the Mortgage
<br />Insurance coverage required by lender ceases to be available Gam 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. Ifsubstantially equivalent Mortgage Insurance coverage is not available,
<br />Borrowershal continucto pay to Lender the amount of separately designated payments that were due when ihemsurance
<br />veraae ceased to be in effect. Lender will accent, 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 fa
<br />full, and Lender shall not be required to pay Borrower any Interest or earnings on such
<br />require loss reserve payments If Mortgage Insurance coverage (in the amount and fi
<br />Provided by an insurer selected by Lender again becomes available, is obtained, and Le
<br />Etoward the premiums for Mortgage Insurance. If Lender required Mortgage I
<br />Loan and Borrower was required to make separately designated payments toward the
<br />Borrower shall pay the premiums required to maintain Mortgage Insurance In effect,
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accordance wi
<br />Borrower and Grader providing for such lamination or until termination is required I
<br />Section 10 affects Borrower's oblirtion to pay interest at the rate provided in the Nol
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the No
<br />Borrower does not repay the Ivan as agreed. Borrower Is not a party to the Mortgage
<br />NEBRA5RA- Single Family- Fannie. Mee/Fredi ie Mae UNIFORM INSTRUMENT
<br />9754 CV 1686635
<br />,ranee re a condition of making the
<br />miums for Mortgage Insurance,
<br />o provide a non - refundable loss
<br />any written agreement between
<br />applicable Law. Nothing in this
<br />for certain losses it may incur if
<br />Farm3028 1/01 (page4of8paget)
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