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<br />7. Preservation, Maintenance and Protection of the Property; Inspections. orrower shall not destroy, damage or
<br />impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in
<br />the Rmpeity, Borrower shall maintain the Property in order to prevent the Property from deteriorating or. decreasing in value
<br />due to its condition. Unless it is determined pursuant to ,Section 5 that repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Property, if damaged to avoid further deterioration or damage. 'If insurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the. Property, Borrower shall. be responsible for
<br />repairing or restoring the Property only if Lender has - released proceeds for such purposes., Lender may disburse proceeds for
<br />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 the Property, Borrower is. not relieved of- .Borrower's obligation
<br />for the completion of such repair or restoration.
<br />Lender . or its agent may make reasonable entries upon and inspections of the Property. If it 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 prior
<br />to such an interior inspection specifying such reasonable cause.
<br />S. Borrower's Loan Application. Borrower shall be in default if, during the Loan applicAtion process, Borrower or
<br />any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false,
<br />misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
<br />connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's
<br />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 faits
<br />to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might
<br />significantly affect Lender's interest in the Property and/or rights under this Security Instrument_ (such as a proceeding in
<br />bankruptcy, probate, for condemnati"., or A miek"— for enforcement of a lion which may attain priority over this Security
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument,
<br />including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b)
<br />appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this
<br />Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not
<br />limited to, entering the Property to make repairs, . change locks, replace or board up doors and windows,. drain water from
<br />pipes, eliminate building. or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender
<br />may take action under this' Section 9, Lender does -not. have to ;do so and is not under'any duty or obligation to do so-. It is
<br />agreed that Lender incurs no liability for not taking• any'or all :actions authorized under this Section 9.- 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 date of disbursement and shall be,payabF6;- Q✓ith--
<br />such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a•lens holct,- $orrower shall comply with all the provisions of the lease: ",If -Borrower
<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, Borrower "shall
<br />pay the premiums 1requived - to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage. Insurance coverage
<br />required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the
<br />premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost
<br />substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage
<br />insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to
<br />pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in
<br />effect. Lender will accept, use and retain these payments as a non - refundable loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve shall be non - refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
<br />required to pay Borrower any interest or earnings on such loss reserves Lender can no longer require loss reserve payments if
<br />Mortgage Insurance coverage (in the amount: and for the period that Lender requires). provided by an insurer selected by Leader
<br />again becomes available, is obtained, and Lender .requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until
<br />termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender ,.(or.. any entity that purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Borrower is not a,party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all 'such insurance in force from time to time, and may enter into
<br />agreements with other parties that share or- m their . risk, or reduce losses. - These agreements are on _ terms and conditions
<br />that are satisfactory to the mortgage insurer and other party- (or parties) to these agreements. These agreements rpay „require
<br />the mortgage insurer to make payments usuig; ,4ny, source of Ifunds..that the.mortgage - ,insurer may have .available {wlticl'may ,
<br />include funds obtained from Mortgage Insurance premiums).
<br />As a result of these .agreements, Leader, any purchaser of the, Note, another :insurer, any reinsurer, any other entity, or
<br />any affiliate of any of the .foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized,
<br />as) a portion of Borrower's payments for Mortgage., Insurance, , in exchange for sharing or modifying the mortgage . insurer's
<br />risk, or reducing losses. If such agreement provides that an- affiliate of Lender takes a share of insurer's risk in exchange for a
<br />share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance.” Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or
<br />any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance,
<br />and they will not entitle Borrower to any refund. '
<br />(b) Any such agreements will not affect the rights Borrower has - -if any —with respect to the Mortgage Insurance
<br />under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain
<br />disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the hlort&m Insurance terminated
<br />automatically, and /or to receive a refund of any Mortgage Insurance premiums that ed at the time of such
<br />cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the
<br />restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property
<br />to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly.
<br />Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous
<br />Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasiblg or Leudgr's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by. this Securdy- ,Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds shall -be applied. in the -order- provided for in Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied
<br />to the sums secured by this Security Instrument, .whether or not then due, with the excess, if any, paid to. Borrower........... ...
<br />NEBRASKA — Single Family— Fannie Mae /Freddie Mae UNIFORM: INSTRUMENT Form 3028 1101
<br />Bankers Systems, Inc., St. Cloud, MN Form MD -1 -NE 8/17/2000 (page 4 of 7 pages)'
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