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<br />200800434
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<br />DOC ID #; 00018688802812007
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<br />Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as
<br />Borrower's principal residence.
<br />9. ProtL'Ction of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to
<br />perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly
<br />affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate,
<br />for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws
<br />or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate
<br />to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the
<br />value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying
<br />any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a
<br />bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks,
<br />replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous
<br />conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do
<br />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
<br />authorized under this Section 9.
<br />Any amounts disbursed hy Lender under this Section 9 shall become additional debt of Borrower secured hy this Security
<br />Instrument. These amounts shall bear interest at the Note rale from the date of disbursement and shall be payable, with such
<br />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 acquires
<br />fee title 10 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 pay
<br />the premiums required to maintain the Mortgage Insurance in eITect. If, for any reason, the Mortgage Insurance coverage required
<br />by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to
<br />make separately designated payments toward the premiums for Mortgage Insurance, BOrrower shall pay the premiums required to
<br />obtain coverage suhstantially equivalent to the Mortgage Insurance previously in effect, at a cost suhstantially equivalent to the
<br />cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If
<br />substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the
<br />separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and
<br />retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable,
<br />notwithstanding the fact that the Loan is ultimately paid in full, and Lfmder shall not be requiff~d to pay Borrower any interest or
<br />earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount
<br />and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is ohtained, and
<br />Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage
<br />Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the
<br />premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
<br />provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written
<br />agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law.
<br />Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. .
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower
<br />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 lime to time, and may enter into agreements
<br />with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are
<br />satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the
<br />mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include
<br />funds obtained 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 any
<br />affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a
<br />portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or
<br />reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of
<br />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 />under 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, and/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. AU Miscellaneous Proceeds are hereby assigned to and shall be
<br />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 to
<br />ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender
<br />may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed.
<br />Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender
<br />shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not
<br />economical1y feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />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 to the
<br />sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the tair market value of the Property
<br />immediately before t.he partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by
<br />this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise
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<br />M Deed of Trust-NE
<br />2006A-NE (06107)
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<br />Page 5 of 9
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<br />Form 3028 1/01
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