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200703831 7. Preservation, Maintenance and Protection of the Prope11y; Inspections. Borrower shall not destroy, damage or impair Ihe Property, allow the Property to deteriorate or commit waste on the Properly. Whether or not Borrower is residing in the Properly, Borrower shall maintain the ProperlY in order 10 prevent the Properly from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid furlher deterioration or damage. If insurance or condemnation proceeds arc paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrowcr is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property _ Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Horrower or any persons or enlities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate infonnalion or stalements to Lender (or failed to provide Lender with material infonnation) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Properly as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfonn the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect LL:nder's interesl in the Property Hnd/or rights under this Security Instrument (such as a proceeding in hankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien whicli may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Properly, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Properly, and securing and/or repairing the Property. Lender's actions can include, bul are not limited to: (a) paying any sums secured by a lien which has priority over this Sccurily InstTwnent; (b) appearing in courl; and (c) paying reasonable attorneys' fees 10 protect its interest in the Property and/or rights under this Security Instrumcnt, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited 10, cmering the Property to make repairs, change locks, replace or hoard up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender 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 agreed that Lender incurs no liability for not taking any or all actions authorized under this Section I}. Any amounts disbursed by Lender under this Section <) shall bccome additional dcbt of Borrowcr secured by this Security Instrument. Thesc amounts shall bear interest al the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Properly, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. M0l1gage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiwns required to maintain the Mortgage Insurance in dIect. If, for any reason, the MOrlgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiullls required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If suhstanrially equivalent Mortgage Insurance coverage is not availahle, Borrower shall continue to pay to I,ender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiullls for MOrlgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiwns required to maintain Mortgage Insurance in etIect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordanl:e with any wriUen agreement between Borrower and Lender providing for such tenllination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Horrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to lime, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on tenns and conditions that are satisfactory to the Inortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make paynlents using any source of funds that the mortgage insurer may have available (Which may include funds obtained from Mortgage Insurance premiums). As a resull of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of insurer's risk in exchange for a share of lhe premiwns paid to the insurer, the arrangement is often tenned "captive reinsurance." Further: (a) Any sllch agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Bon-ower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has--if any--with respect to the M0l1gage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the light to receive ce11ain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any M0l1gage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall he paid to I ,ender. If the Properly is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right 10 hold such Miscellaneous Proceeds until I,ender has had an opportunity to inspect such Property 10 ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. I,ender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasihle or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In Ihe event of a total laking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT d'lFOrm 3028 1/01 Bankers Systems, Inc" St. Cloud. MN Form MD 1-NE 8/17/2000 (page 4 '!(7pages) ~ Kill 't . <l.