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<br />200510708
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<br />required by Lender, for damagc to, or dcstruction of, the Property, such policy shall include a standard
<br />mortgagc clause and shall naine Lender as mortgagee and/or as an additional loss payee.
<br />In thc event of loss, Borrower shall give prompt notice to thc insurance carrier and Lender. Lender
<br />may make proof of loss if not made promptly by Borrower. Unless Lendcr and Borrower otherwise
<br />agrcc in writing, any insurance procccds, whether or not the underlying insurancc was required by
<br />Lcndcr, shall be applied to restoration or rcpair of thc Property, if the restoration or repair is
<br />economically fcasible and Lender's security is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to
<br />inspcct such Property to ensure the work has becn completed to Lender's satisfaction, provided that such
<br />inspection shall bc undcrtakcn promptly. Lender may disburse proceeds for the repairs and restoration in
<br />a single payment or in a series of progress payments as the work is completed. Unless an agrcement is
<br />made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall
<br />not be requircd to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or
<br />othcr third parties, retained by Borrowcr shall not be paid out of the insurance proceeds and shall be the
<br />sole obligation of Borrower. If thc restoration or repair is not economically feasible or Lender's security
<br />would bc lessened, the insurancc procccds shall be applied to the sums sccured by this Security
<br />Instrument, whcthcr or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds
<br />shall be applied in the order providcd for in Section 2.
<br />If Borrower abandons the Property, Lcndcr may file, negotiate and settle any available insurance
<br />claim and re]atcd matters. If Borrower does not respond within 30 days to a notice from Lender that the
<br />insurance carrier has offered to settle a claim, thcn Lcnder may negotiate and settlc the claim. The
<br />30-day period will bcgin when the notice is given. In either cvcnt, or if Lender acquires the Propcrty
<br />undcr Scction 20 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />procecds in an amount not to excecd thc amounts unpaid under the Note or this Security Instrument, and
<br />(b) any other of Borrowcr's rights (other than the right to any refund of unearned premiums paid by
<br />Borrower) under all insurance policies covcring the Property, insofar as such rights are applicable to the
<br />covcrage of the Property. Lcnder may use the insurance proceeds cither to repair or restore thc Property
<br />or to pay amounts unpaid under the Notc or this Security Instrument, whethcr or not then due.
<br />5. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residcncc for at least one year after thc date of occupancy, unless
<br />Lender othclwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br />extenuating circumstanccs exist which are beyond Borrower's control.
<br />6. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br />not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
<br />Property. Whcthcr or not Borrower is residing in the Propcrty, Borrower shall maintain the Property in
<br />order to prevent the Property from detcriorating or decreasing in value due to its condition. Unless it is
<br />determined pursuant to Section 4 that repair or restoration is not economically fcasible, Borrower shall
<br />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 thc taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring thc Property only if Lender has released proceeds for such
<br />purposes. Lcndcr may disburse proceeds for thc rcpairs and restoration in a single payment or in a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not
<br />suftkient to repair or restore the Propcrty, Borrower is not relieved of Borrower's obligation for the
<br />completion of such repair or restoration.
<br />Lcnder or its agent may makc reasonable entries upon and inspections of the Property. If it has
<br />reasonable cause, Lcnder may inspect the interior of the improvements on the Property. Lender shall
<br />give Borrower notice at the timc of or prior to such an interior inspection specifYing such reasonable
<br />cause.
<br />7. Borrower's Loan Application. Borrowcr shall be in default if, during the Loan application
<br />process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
<br />knowledge or consent gave materially false, misleading, or inaccurate information or statements to
<br />Lender (or failed to provide Lcnder with material information) in connection with the Loan. Material
<br />representations include, but are not limited to, representations concerning Borrower's occupancy of the
<br />Propcrty as Borrower's principal rcsidence.
<br />8. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security
<br />Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property
<br />and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for
<br />condemnation or forfeiture, for enforcement of a licn which may attain priority over this Security
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<br />NE-2030-0905
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