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<br />200706570
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<br />coverage, not otherwise rcquired by Lender, for damage to, or destruction of, thc Property, such policy shall include a
<br />standard mortgage clause and shall name Lcndcr as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurancc carrier and Lender. Lender may make proof
<br />of loss ifnot made promptly by Borrowcr. Unless Lender and Borrower otherwise agree in writing, any insurancc procecds,
<br />whether or not the underlying insurance was required by Lender, shall be applicd to restoration or repair of the Property, if
<br />thc restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such
<br />Propcrty to ensure the work has been completed to Lcndcr's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />payments as the work is completed. Unless an agrccmcnt is madc in writing or Applicable Law requires interest to be paid
<br />on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for
<br />public adjusters, or other third parties, retained by Borrowcr shall not bc paid out of the insurance proceeds and shall bc the
<br />sole obligation of Borrower. If the rcstoration or repair is not cconomically feasible or Lender's security would be lessened,
<br />the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the
<br />excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrowcr abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />mattcrs. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a
<br />claim, then Lcnder may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either
<br />event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
<br />rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrumcnt,
<br />and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all
<br />insurance policies covering the Propcrty, insofar as such rights arc applicablc to thc coveragc of thc Property. Lender may
<br />use the insurancc procccds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Borrowcr shall occupy, cstablish, and use the Property as Borrower's principal residence within
<br />60 days aftcr thc cxccution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not
<br />be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrowcr's 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 thc Propcrty. Whether or not Borrower
<br />is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decrcasing in valuc due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not
<br />economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damagc. If
<br />insurance or condemnation proceeds are paid in connection with damagc to, or the taking of, the Property, Borrower shall be
<br />responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may
<br />disburse proceeds for the rcpairs and rcstoration in a single payment or in a series of progress payments as the work is
<br />complctcd. If thc insurance or condemnation proceeds are not sufficicnt to rcpair or rcstorc the Property, Borrower is not
<br />relieved of Borrower's obligation for the completion of such repair 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 thc time of or
<br />prior to such an interior inspcction spccifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower
<br />or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially falsc,
<br />misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
<br />connection with thc 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
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) thcre is a legal
<br />proceeding that might significantly affcct Lcndcr's intercst in the Property and/or rights under this Security Instrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority
<br />ovcr this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
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<br />Nebraska Deed ofTrust~Single Family-Fauuie Mae/Freddie Mac UNIFORM INSTRllMENT
<br />-THE COMPLIANCE SOURCE, INC.- Page 6 of 13
<br />www.complianccsourcc.com
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<br />MERS Modified Form 3028 01101
<br />14301NE 08100
<br />\tl2000j The Compliance Source, Tnc.
<br />3641987
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