|
200200612
<br />coverage, not otherwise required by Lender, for damage to, or destruction of,, lire Property, such policy shall include a
<br />standard or clause and shall name lznder as mortgagee and/or as an additional loss payee.
<br />In We event of loss, Bonower shall give prompt notice to the insurance carrier and Lender. Ixu derm rymake proof
<br />ofloss ifuot made promptly by Borrower. Unless lznder and Borrower otherwise agree in writing, any insurance proceeds,
<br />er
<br />wheth or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Properry, if
<br />the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restomhon
<br />period, Lender shot the right to hold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Property to 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 comppleted. Unless an agreement is made in wrifing or Applicable l.aw requires interest to be paid
<br />on such insurance proceeds, Lender shall not be 1equired 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 ofthe insurance proceeds and shall be
<br />the sole obligation of Borrower_ If the I Otto mtoa 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 Insnrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Suoh 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'. IfBonower does not respond within 30 days to a noticefruni Lender that the insuruneecovierhasofferedtos Illea
<br />claim, then Leader may negotiate and settle the clown. The 30 -day period will begin when the notice is given ht either
<br />event, calf Lender acquires the Properly under Section 22 or otherwise, Borrower hereby assiyms m Lender (a) Borrower's
<br />rights to any insurance proceeds in an amount not to exceed the i noun is unpaid under the Note or this Securov Instrument
<br />and (b) any otter of Bon'owei's rights (other than the right to any refund of uneamed fin crenous paid by Borrower) under all
<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 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 cons'en[ shall not he unrcusonably withheld, or unless
<br />extenuating circumstances exist which are beyond Bonower's control.
<br />]. Preservation, Maintenance and Protection of tile. PropeHy; inspections. Bon ower shall not destroy.
<br />damage or impair the Property, allow the Pt perty to d0tout to or commit waste
<br />On the Property- Whether or not Bonower is residing in the Property, Borrower shall maintain the Property to order to
<br />proven[ 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 Properly if damaged to
<br />avoid further deterioration ar damage lfmsurance or condemnation proceeds are paid in connection with damage te, or die
<br />taking of the Property, Borrower shall be responsible for repairing or restoring the Property only ifLender has released
<br />proceeds for such purposes, Lender may disburse proceeds for the repaits and restoration in a single payment Orin a series
<br />of progress payments as the work is completed- If the insurance or condemnation proceeds are not suliicienl to repair or
<br />restore the Property, Bonower is not relieved of Borrower's obligation for the completion of such repair or restoal
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. Ifit 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 Luau Application. Borrower shall be in default if, during the Loan application process.
<br />Borrower or any persons or entities acting at the direction of Bormwer or with Borrower's knowledge or consent gore
<br />inner ally false, misleading, or inaccurate in rot .... hot, or statements to Lender (or failed to provide Lender with motel iul
<br />informalion)in connecfion with the Loan Material
<br />n ncern
<br />representations indudc,bW ere not limited m,repasenmtios coing
<br />Bon rower's occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Properly and Rights Linder 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 Properly and /or rights atrder this Security Insnrument (such
<br />as a proceeding in bankruptcy, probate, for condenomtion or forfeiture, for en Porcement Ofa Iten which may attain priority
<br />over this Security Instrument or to enforce laws or regulations), or (c) Bonower has abandoned the Property, [hen Lender
<br />may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Properry 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 scented by alien which has priority over
<br />this Security bnsliu u nt, (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the
<br />Property and /or rights under this Security Instrument, including its secured position in a bankrupieylpro a boar. Securing
<br />the Property includes, but is not limited lo, entering the Property to make repans, change locks, replace - p doors
<br />and windows, drain water fi'(m pipes, eliminate building or other code violations or dangerous conditions, and have utilifies
<br />Wined 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 I ziider incurs no liability for not taking any or all actions authorized under this
<br />Section 9.
<br />Any amounta disbursed by Lender under this Section 9 shall become additional debt of Bonower secured by this
<br />Security Instrument. 'These amounts shall bear interest at [lie Note rate from the date of disbursement and shall be payable,
<br />With such interest, upon notice from Lender to Borrower requesting payment.
<br />Ifihls Security Instrument is on a leasehold, Borrower shall comply with all the provisions of die lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee title Shull not merge unless Lender agrees to the merger in writing,
<br />10. Mortgage Insurance. If Izndel required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums reclined to maintain the Mortgage Insurance in effect, If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from lire mortgage insurer that previously provided such
<br />insurance xnd Borrower was required to make separately designated payments toward the premiums for Mortgage Inset once,
<br />Bonower shall pay the premiums required to obtain coverage substau llal ly equiva lent to the Mortgage Insurance previously
<br />in effect, at a cost substantiallyy equivalent to the cost to Bonower of the Mortgage Insurance In cvi ously in effect, fi'om an
<br />alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shut to pay to Lender the amount of the separately design aced payments that were due when the insurance
<br />coverage ceased to be in effect, lznder will accept, use and retain these paymentsas a non - refundable loss reserve in lion of
<br />rvoitgagelnsurance. Suclllossreserve shall be run- refndable, nniwiths'tanding(he fact [hankie Loan is ultimately paid in
<br />full, and Lender shall not be required to pay [lorrowur any interest or earnings on such loss reserve. Lender can rte 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 />payments toward the premiums for Mortgage Insurance, If Lenderrequired Mortgage lnsursnceasacondilion ofnraking the
<br />Loan and Borrower was required to make separately designated payments toward the pmmiunrs for MOr'tgage Insurance,
<br />Bormwer shall pay the premiums required to uouniiii Mortgage Insuance in effect, or to pro 'd a non - refundable loss
<br />reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement hehcaen
<br />Borrower and Lender providing for such termination Or until ter ounanon is required by Apphcab le I aw. Nothing in this
<br />Section I0 affects Borrower's ohbgation to pa interest at the rate provided in the Note
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for cerium losses it may incur if
<br />Borrower does nut repay the Loan as agreed. Borrower is not a party to the Mortgage Insnranco.
<br />NEBRASKA-- Single Fundy— Pannio Mea /Fo,ddk Me[BNIFOR>11NSIRLIMMT Fonn3028 1 /01 (pnge4cf8po5 )
<br />17sL1V(21cu 011002
<br />GO, Tor Until nfdm
<br />
|