|
<br />200608856
<br />
<br />provided that such Inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and
<br />restoration in a single payment or In a series of progress payments as the work Is completed. Unless an agreement
<br />is made In writing or Applicable Law requires Interest to be paid on such Insurance proceeds, Lender shali not be
<br />required to pay Borrower any Interest or earnings on such proceeds. Fees for public adjusters, or olher third parties,
<br />retained by Borrower shall not be paid out of the Insurance proceeds and shall be the sole obligation of Borrower.
<br />If lhe 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 tbis Security Instrument, whether or not then due, with the excess, if any, paid
<br />to Borrower. Such insurance proceeds shall be applied in lhe order provided for in Section 2.
<br />If Borrower abandons tbe Property. Lender may file, negotiate and settle any available insurance claim and
<br />related matters. If Borrower does not respond wilhln 30 days to a notice from Lender that lhe Insurance carrier has
<br />olIered to settle a claim, then Lender may negotiate and settle lhe claim. The 30-day period will begin when the
<br />notice is given. In ellher event, or if Lender acquires the Property under Section 22 or olherwlse, 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 (otber 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 tbe Property. Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or lhls Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shali occupy, establish, and use the Property as Borrower's principal residence
<br />wllhln 60 days after lhe execution of this 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 wilhheld, or unless extenuating circumstances exist which are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Property: Inspections. Borrower sball not destroy,
<br />damage or Impair the Property. allow the Property to deteriorate or commit waste on the Property. Whelher or not
<br />Borrower Is residing in tbe Property, Borrower sball 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 lhe 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 lhe Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest In the Property and Rights Under this Security Instrnment. If (a)
<br />Borrower fails to perform the covenants and agreements contained In tbls Security Instrument, (b) there Is a legal
<br />proceeding that might significantly alIect Lender's Interest In the Property and/or rights under lhls 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 tbls 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 in the
<br />Property and rights under tbls Security Instrument, including protecting and/or assessing lhe value of the Property,
<br />and securing and/orrepairlng tbe 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 />olher code violations or dangerous conditions, and have utilities turned on or olI. 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 liability for not taking any or all actions aulhorlzed 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 lhe Note rate from the date of disbursement and shall be
<br />payable, wilh 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.
<br />Borrower shall not surrender the leasehold estate and Interests herein conveyed or terminate or cancel the ground lease.
<br />Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower
<br />acquires fee title to lhe Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger
<br />In writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower
<br />shall pay the premiums required to maintain the Mortgage Insurance In elIect. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender ceases to be available from the mortgage insurer lhat previously provided such
<br />
<br />NEBRASKA..Siogle Family..Fannie Mae/Freddie Mac UNIFORM INSTRUMENT. MERS
<br />Form 3028 1/01 Page 5 of 10
<br />
<br />DocMag/c ~ 800-6.9-1362
<br />www.docmagic.com
<br />
|