|
<br />200511213
<br />
<br />retained by Borrower shall not be paid out of the insurance proceeds and shall he the sole obligation of Borrower.
<br />If the restoration or repair is not economically feasible or Lender's security would be lessened, the Insurance proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, If any, paid
<br />to Borrower. Such 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
<br />related matters. If Borrower does not respond within 30 days to a notice from Lender that the Insurance carrier has
<br />offered to settle a claim, then Lender may negotiate and settle the claim, The 30-day period w1l1 begin when the
<br />notice Is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby
<br />assigns to Lender (a) Borrower's rights to any Insurance proceeds in an amount not to exceed the amounts unpaid
<br />under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund
<br />of unearned premiums paid by Borrower) under all Insurance policies covering the Property, insofar as such rights
<br />are applicable to the coverage of the Property. Lender may use the Insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or this Security Instrument. whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within 60 days after the execution ofthls Security Instrument and shall continue to occupy the Property as Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonably withheld. or unless extenuating circumstances exist which are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or Impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not
<br />Borrower is residing in the Property, Borrower shall maintain the Property In order to prevent the Property from
<br />deteriorating or decreasing in value due to Its condition. Unless It Is determined pursuant to Section 5 that repair or
<br />restoration is not economically feasible, Borrower shall promptly repair the Property If damaged to avoid further
<br />deterioration or damage. If insurance or condemnation proceeds are paid In connection with damage to, or the taking
<br />of, the Property, Borrower shall be responsible for repairing or restoring the Property only If Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or In
<br />a series of progress payments as the work Is completed. If the insurance or condemnation proceeds are not sufficient
<br />to repair or restore the Property, Borrower Is not relieved of Borrower's obligation for the completion of such repair
<br />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
<br />of or prior to such an interior Inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br />Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with
<br />material information) in connection with the Loan. Material representations Include. but are not limited to,
<br />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)
<br />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 Property and/or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may
<br />attain priority over this Security Instrument or to enforce laws 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 ill the
<br />Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums
<br />secured by a lien which has priority over this Security Instrument; (b) appearing in court: and (c) paying reasonable
<br />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 Includes. but Is not limited to. entering the Property to
<br />make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or
<br />other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action
<br />under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that
<br />Lender Incurs no liablllty 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 Borrower secured by this
<br />Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be
<br />payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the
<br />merger in writing.
<br />10. Mortgage Insurance. If Lenderrequlred Mortgage Insurance as a condition of making the Loan. Borrower
<br />shall pay the premiums required to maintain the Mortgage Insurance In effect. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage
<br />Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage
<br />Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance
<br />previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage
<br />Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated
<br />payments that were due when the Insurance coverage ceased to be in effect. Lender w1l1accept. use and retain these
<br />
<br />Borrower Initials:
<br />NEBRASKAnSingle FamilynFannie Mae/ eddie Mac UNIFORM INSTRUMENT. MERS
<br />Form 3028 1/01 Page 5 of 10
<br />
<br />
<br />DocMIJgIc~ 800-649-1362
<br />www.docmagic.com
<br />
|