|
200200753
<br />purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender,
<br />but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the
<br />Property, against any risk, hazard or liability and might provide greater or lesser coverage than was
<br />previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained
<br />might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts
<br />disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this
<br />Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement
<br />and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to
<br />Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name
<br />Lender as mortgagee and /or as an additional loss payee. Lender shall have the right to hold the
<br />policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all
<br />receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage,
<br />not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall
<br />include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower
<br />otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was
<br />required by Lender, shall be applied to restoration or repair of the Property, if the restoration or
<br />repair is economically feasible and Lender's security is not lessened. During such repair and
<br />restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had
<br />an opportunity to inspect such Property to ensure the work has been completed to Lender's
<br />satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse
<br />proceeds for the repairs and restoration in a single payment or in a series of progress payments as
<br />the work is completed. Unless an agreement is made in writing or Applicable Law requires interest
<br />to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest
<br />or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower
<br />shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not
<br />then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the
<br />order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available
<br />insurance claim and related matters. If Borrower does not respond within 30 days to a notice from
<br />Lender that the insurance carrier has offered to settle a claim, then 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
<br />acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a)
<br />Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under
<br />the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to
<br />any refund of unearned premiums paid by Borrower) under all insurance policies covering the
<br />Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the
<br />insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note
<br />or this Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's
<br />principal residence within 60 days after the execution of this Security Instrument and shall continue
<br />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
<br />withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower
<br />shall not destroy, 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
<br />NEBRASKA — Single Familc— Fannie Mac /Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01 (page 6 of l4 pages)
<br />ALE NE4512 /00 LOAN ID: 00967827
<br />In t �_
<br />
|