|
determination resulting from an injection by Borrower 200306009
<br />11 Borrower falls to maintain any of tire coverages described above, Lender may obtain insurance coverage, at Lender's option and
<br />Borrower's expense Lander is under no obligation to purchase any particular type or amount of coverage- Therefor., such coverage shall cover
<br />Lender, but might or might not prot.ot Burrower, Borrower's equity In the Properly, or the contents of the Property, against any risk, hazard or
<br />liability and might provide greater or tosser coverage than was previously in effect. Borrower acknowledges that the cost of the Insurance
<br />coverage an obtained might significantly expect the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender
<br />under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. Those amounts shall bear interest at the Note
<br />rate from the date of disbursement and shall be payable, with such Interest, upon notice from Leader to Borrower requesting payment
<br />All Insurance policies required by Lender and renewals Of Such centrists shall be subject to Lenders rit to disapproyo such policies, shall
<br />include a standard mortgage clause, and shall name Lender as mortgagee and /or as an additional less payee. Lender shall have [tie right to hold
<br />To policies and renewal certitleates. If Lender requiras, Borrower shall promptly give to Lender all receipts of paid premlums and renewal notices.
<br />If Borrower obtains any tomb of Insurance coverage, not ethenvise required by Lender, for damage W. or destruction of the Property, such policy
<br />shall include a standard mortgage clause antl shall name Lender as mortgagee and/or as an additional lass payee.
<br />In the event of loss. Borrower shall give prompt notice to tire Insurance carrier and Lender Lander may make proof of loss if net made
<br />promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not fie underlying Insurance
<br />was required by Lender, Shall be applied to restoration or repair of tae Property, if the restoration or repair is economically feasible and Lender's
<br />security Is not lessened During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has
<br />had an opportunity to Inspect such Property to ensure Pre work has been completed to Lender's satisfaction, provided that such inspection shell
<br />be undertaken promptly. Lender may dedirrse proceeds for the repairs and restoration In o single payment or In a series of progress payments
<br />as the work is completed. Unless an agreement is rams, In writing or Applicable Law requires Interest to be paid on soon Insurance proceeds,
<br />Lender shall not be roqulred to pay Borrower any Interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained
<br />by Borrower shall not be paid out of the Insurance proceeds and shall be Ice sole obligation of Borrower. If fie restoration or repair is not
<br />eoonomlcajly feasible or Lenders security would be lessened, the Insurance proceeds shall be applied to the sums securetl by this Securly,
<br />Instrument whether or not then due, with the excess, if any paid to Borrower. Such Insurance preceetls shall be applied in the artier provided
<br />for In Section 2
<br />It Borrower abandons the Property, Lender may file, negotiate and setle any available insurance claim and related matters. If Borrower does
<br />not respond within 30 days to a nokce from Lender that the insurance carrier has offered to settle a claim, than Lender may negotiate and settle
<br />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
<br />otherwise. Borrower hereby assigns to Lender (a) Borrowers rights to any Insurance proccoes in an amount not to exceed the amounts unpaid
<br />under the Note or the Security Instrument and Me any other of Borrower's rights (other than [tie right to any refund of unearned premiums paid
<br />by Borrower) under all insurance policies covering the Property, Insofar ne such rights are applicable to Pre 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 Nate or this Security InsWment, whether
<br />or not then due.
<br />6. Occupancy. Borrower shall Occupy establish, and use the Property as Borrower's principal residence within 5) days after the execution
<br />of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of
<br />occupancy. unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances
<br />exist which are beyond Borrower's control.
<br />]. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall riot desire,, damage or impair the Property,
<br />allow the Property to doterinrate, or commit waste on the Property. Whether or not Borrower Is residing In the Property. Borrower Shall maintain
<br />Pte Property In older to prevent the Property from deteriorating or decreasing In value due to Its condition Unless it is detarminetl pursuant to
<br />Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property it damaged to avoid further
<br />deterioration or damage. It insurance or condemnation proceeds are paid In connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only If Lender has released proceeds for such purposes. Leader may disburse
<br />proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work Is completed- If the Insurance Or
<br />condemnation proceeds are not sufficient to repair Or restore fie Property. Borrower is not relieved of Borrower's obligation for the completion .1
<br />such repair or restoration.
<br />Lender or Its agent may make reasonable entries LWn and inspections of the Property- If it has reasonable cause, Lender may Inspect the
<br />interior of the Improvements on the Property. Lender shall give Borrower notice at the time of or prior to Such an interior Inspection specifying
<br />such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if during the Loan application process, Borrower or any persons or entities
<br />acting at the direction of Borrower or with Borrower's knowledge or consent gave matonally false mlelpading, or inaccurate Information or
<br />statements to Lender (or failed to provide Lender with material Information) in connection with the Loan Material representations Include, but are
<br />not limited to, representations concerning Borrower s occupancy of the Property as Borrower's principal residence,
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's Interest in
<br />the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or formation, for
<br />enfxrnerms t of e lien which may attain priority over this Security Instrument or In enforce Taws or regulations), or (c) Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever Is reasonable or appropriate 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, end Securing and/or repairing the Property- Lender's actions
<br />can include, but are riot limited to (a) paying any sums secured by a Ilan which has priority over this Security hutrument (b) appearing In exert;
<br />and (o) paying reasonable attorneys" fees to protect its Interest In the Property and/or rights under this Security Instrument, Including its secured
<br />position in a bankruptcy proceeding. Securing the Property nhqudes, but is not limited to entering rho Property to make repairs, change locks,
<br />replace or board up doors and windows . drain water from papas, eliminate building or other code violations or dangerous eondltlons, and have
<br />utilities turned on or oft. Although Lender may take action under this Sorption B. Lender does not have to do So and i3 not under any duty or
<br />Obligation to do so. It is agreed that Lender incurs rho Ireally for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Burrower secured by this Security Instrument. These
<br />amounts shall bear interest at [tie Note rate tram the date Of disbursement and Shall be payable, with such Interest, upon ,at,. from Lender to
<br />Borrower requesting payment.
<br />It this Security Instrument Is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the Iass'elmd and the fee title shall not merge unless Lender agrees to the merger in writing.
<br />10. Mortgage Insurance, If Lender required Mortgage Inaurance as a condition of making the Loan, Borrower shall pay the premiums
<br />required to maintain the Mortgage Insurance in affect If for any reason, the Mortgage Insuranoa ooverege required by Leader ceases to be
<br />available from the mortgage Insurer that previously provided such Insurance and Burrower was acquired to make separately designated Payments
<br />toward the premiwns for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the
<br />Mortgage Insurance previously in effect, at a cost substantially equivalent to rho cast to Borrower of the Mortgage Insurance previously in effect,
<br />from an alternate model Insurer selected by Lender. If Substantially equivalent Mortgage Insurance coverage Is not available, Borrower shall
<br />continue to pay to Lender the amount of the separately designated payments Thal were due when the insurance coverage ceased to he in effect
<br />Lender will accept, use and retain those payments as a non- eundable Tess reserve In lieu of Mortgage Insurance, Such Toss reserve shall be
<br />non - refundable, notwithstanding the fact that the Loan Is ultimately paid In full, and Lander Shall not be required to pay Borrower any interest or
<br />earnings on such Ions reserve- Lender can no longer require loss reserve payments if Mortgage Insurance coverage (In the amount and for the
<br />period that Lender requires) provided by an insurer selected by Lender again beuomes available, is obtained, and Lender requlre5 separately
<br />designated payments toward the premiums for Mortgage Insuanco. If Lender required Mortgage Insurance as a condition of making the Loan
<br />and Berewer was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shell pay the
<br />premiums roqulred to maintain Mortgage Insurance in effect, or to provide a non - refundable loss reserve, until London's requirement for Mortgage
<br />Insurance ends in accordance with any written ageement between Borrower and Lender providing for such termination or until termination Is
<br />required by Applicable Lew. Nothing In this Sorption 10 affects Borrowers Obligation to pay Interest at the rate provided in Pte Note.
<br />Mortgage Insurance reimburses Lereer (or any entity that purchases the Note) for certain lassos It may Incur if Borrower does not repay Pte
<br />Loan as agreed Rxrrower is not a party to the Mortgage Insurance.
<br />Mortgage Insurers evaluate their total risk on all such Insurance In tome from tune to lime, end may enter into agreements with other parties
<br />that share or modify their risk or reduce losses. These agreements are on terms and conditions that are s'atis'factory to the mortgage insurer and
<br />the other party (or parties) to these agreements. These agreements may require the mnrtgage Insurer to make payments using any source of
<br />funds that the mnrtgage Insurer may have available with i hOude funds obtained from Mortgage Insuranoa premiums).
<br />As a result of these agreements. I ender, any purchaser of the Note, another insurer, any rainsurer, any other entity or any affiliate of any of
<br />NEBRASKA Single Family Fannie Mae/Freddi, Mac UNIFORM INSTRUMENT Form 30281/01
<br />Page 3 of 6
<br />
|