|
<br />200709445
<br />
<br />required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard
<br />mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
<br />may make proof of loss if not made promptly by Borrower. Unlcss Lcnder and Borrowcr othcrwisc
<br />agrec in writing, any insurance proceeds, whcthcr or not thc underlying insurancc was required by
<br />Lcndcr, shall bc applicd to rcstoration or rcpair of thc Property, if the restoration or repair is
<br />economically feasible and Lender's security is not lesscncd. During such rcpair and rcstoration pcriod,
<br />Lendcr shall havc the right to hold such insurance proceeds until Lender has had an opportunity to
<br />inspect such Property to ensure the work has been complcted to Lcnder's satisfaction, provided that such
<br />inspcction shall bc undertakcn promptly. Lender may disburse proceeds for the repairs and restoration in
<br />a singlc payment or in a series of progress payments as the work is completed. Unlcss an agreement is
<br />made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lcnder shall
<br />not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or
<br />other third parties, retained by Borrowcr shall not be paid out of the insurance proceeds and shall be the
<br />sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security
<br />would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds
<br />shall be applied in thc order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
<br />claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
<br />insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The
<br />30-day period will begin when the notice is given. In either event, or if Lender acquires the Property
<br />under Section 20 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and
<br />(b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by
<br />Borrowcr) undcr all insurance policies covering the Propcrty, insofar as such rights are applicable to the
<br />coveragc of the Property. Lender may use the insurance proceeds eithcr to repair or restore the Property
<br />or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />5. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residence for at least one year after the date of oeeupaney, unless
<br />Lender othcrwise agrces in writing, whieh eonsent shall not be unreasonably withheld, or unless
<br />extenuating circumstanccs cxist which are beyond Borrower's control.
<br />6. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall
<br />not destroy, damage or impair the Property, allow the Propcrty to dctcriorate or commit waste on thc
<br />Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
<br />order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
<br />determined pursuant to Scction 4 that repair or restoration is not economically feasible, Borrower shall
<br />promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
<br />condemnation proceeds arc paid in conncction with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such
<br />purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not
<br />sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the
<br />completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. If it has
<br />reasonable cause, Lendcr may inspect the interior of the improvements on the Property. Lender shall
<br />give Borrower notice at the timc of or prior to such an interior inspection specifying such rcasonable
<br />cause.
<br />7. Borrower's Loan Application. Borrower shall be in default if, during the Loan application
<br />process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
<br />knowledge or consent gave materially false, misleading, or inaccurate information or statements to
<br />Lender (or failed to provide Lender with material information) in connection with the Loan. Material
<br />rcprcscntations include, but are not limited to, represcntations concerning Borrowcr's occupancy of the
<br />Property as Borrower's principal residence.
<br />8. Protection of Lender's Interest in the Property and Rights Under this Security
<br />Instrument. If (a) Borrower fails to perform the covenants and agreemcnts containcd in this Security
<br />Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property
<br />and/or rights under this Security Instrument (such as a procecding in bankruptcy, probate, for
<br />condemnation or forfeiture, for enforcement of a lien which may attain priority over this Sccurity
<br />
<br />Page 4 of 10
<br />
<br />NE-2030-1206
<br />
|