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<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destro~, da~~ge ?r.
<br />impair the Property, allow the Property to deteriorate or commit waste on the Property: Whether. or ~ot Borrower I~ res.ldmg m
<br />the Property, Borrower shall maintain the Property in order to prevent the proJ?erty from d~tefI~ratmg or decr7asmg ~n v,alue
<br />due to its condition. Unless it is determined pursuant to SectIOn 5 .that repair or r~stor~tlOn IS not econom~c~lly feasible,
<br />Borrower shall promptly repair the Property if damaged to aVOid further detenoratlOn or damage. If msura!lce or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower sha.ll be responsible ~or
<br />repairing or restoring the Property only if Lender has released proceeds for such purposes. L~nder may dlsb~rse I?roceeds for
<br />the repairs and restoration in a single payment or in a series of progress payments as th~ work IS, completed, If the msur~nce, or
<br />condemnation proceeds are not sufficient to repair or restore the Property, Borrower IS not relIeved of Borrower's obhgatlon
<br />for the completion of such repair or restoration.. ., . ,
<br />Lender or its agent may make reasonable entnes upon and InSpectIOns of ,the Property. If, It has rea,sonable cau~e,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or pnor
<br />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, B?rrower or
<br />any persons or entities acting at the direction of Borrower or with B(~rrower's kn~)wledge or c~nsent ga,:,e ~a~efIall~ fals7,
<br />misleading, or inaccurate information or statements to Lender (or failed to proVide Lender with matenal IllformatlOn) m
<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 fatls
<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 condemnation or forfeiture, for enforcement of a lien 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 securcd 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.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Security Instmment. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />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 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 required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage
<br />required by Lender ceases to be available from tlle 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 scparately 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 reserve. 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 Lender
<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 modify their risk, or reduce losses. These agreements are on terms and conditions
<br />that arc satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require
<br />~he mortgage insu.rer to make payments using any s~)llrce of funds that the mortgage insurer may have available (which may
<br />mclude funds obtamed from Mortgage Insurance premIUms).
<br />As a result of these agreements, Lender, 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 />a~) a portion .of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's
<br />fIsk, or reducmg 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 />nnder 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 Mortgage Insurance terminated
<br />automatically, andJ or to receive a refund of any Mortgage Insurance premiums that were unearned 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 wor~ has been ?ompleted to L~nde( s sa~isfacti(~n, provided th~t such ~pec.tion shall be undertaken promptly.
<br />Lender may pay for the repans and restoratIOn In a SIngle dIsbursement or III a senes 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 feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Security 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.
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<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
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<br />Bankers Systems.tne.. St, Cloud. MN Form MD-l-NE 8/17/2000
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