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<br />200710386
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<br />work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on snch insura1H:e
<br />procecds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or
<br />other Ihird parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of
<br />Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance
<br />proceeds shall be applied to the sums secured by this Seeurity lnstnunent, whether or not then due, with the excess, if any, paid
<br />to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />mallt:rs. If Borrower docs not respond within 30 days to a notice from Lender that the insurance carrier has offered 10 settle a
<br />claim. then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is gi ven. In either event,
<br />or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to
<br />any insurance 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 Borrower) nnder all
<br />insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender lllay use
<br />lhe insurance proceeds 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. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60
<br />days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence
<br />for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br />unreasonably withheld, or unless extenuating circumstmlces exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; inspections. Borrower shall not destroy, damage or
<br />impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in
<br />the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or deereasing in value
<br />due to ils condition. Unless it is determined pursumlt to Section 5 that repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Property if damaged to avoid further deterioration or dmnage. If insurance or condemnation
<br />proceeds arc paid in connection with dmnage to, or the taking of, the Property, Borrower shall be responsible for repairing or
<br />restorinf! the Property only if Lender has released proceeds for such purposes. Lender Illay disburse proceeds for the repairs
<br />and restoration in a single payment or in a series of progress payments as the work is completed. If the insuranct: or
<br />condemnation proceeds arc not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation
<br />for lhe complelioll of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspeetions of the Property. If it has reasonable cause, Lender
<br />may inspect the illterior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such
<br />;111 interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Appllcation. Borrower shaIl be in default if, during the Loan application process, Borrower or
<br />,my persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false,
<br />misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
<br />cOllllection with the Loan. Material representations include, but are not limited to, representations conceming 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
<br />fails 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 ancl/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 10 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 mId/or repairing the Property. Lender's actions
<br />call include, hut arc not limited to: (a) paying any sUlns secured by a lien which has priority over lhis Security Instrument;
<br />(b) appearing in court; and (c) paying reasonable auomeys' fees to protect its interest in the Property ancl/or rights under this
<br />Security InstnLJnent, including its secured position in a bankruptcy proceeding. Securing the Property illcludes, but is not
<br />limited to. entt:ring the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes,
<br />eliminate building or other code violations or dangerous conditions, and have utilities tumed on or off. Although Lender may
<br />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
<br />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 Security
<br />Instrument. These amounts shall bear interest at the Note rate from the date of disbursement mld shall be payable, with such
<br />interest, Ilpon notice from Lender to Borrower requesting payment.
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<br />I rEM T2698L6 (0308)-MERS
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<br />(Page 6 of /2 pages)
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<br />Form 3028 1101
<br />
<br />GREATLAND.
<br />To Order Call: 1 -600-530-9393 D Fax: 616-791-1131
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<br />NEBRASKA-Sill!\1e rfllllily. -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
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