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<br />7. Preservation Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or
<br />impair the Property, all~w the Property to deteriorate or commit waste on the Property. ,Whether. or ~ot Borrower i~ res.iding in
<br />the Property, Borrower shall maintain the Property in order to prevent the Prol?erty from d~ten~ratmg or decr~asmg ~ v.alue
<br />due to its condition. Unless it is determined pursuant to Section 5 that repalI or restoration is not economically feaSible,
<br />Borrower shall promptly repair the Property if damaged to avoid. further deterioration or damage. If insurap.ce or
<br />condemnation proceeds are paid in connection with damage to, or the takmg of, the Property. Borrower sha!1 be responsible ~or
<br />repairing or restoring the Property only if Lender has released proceeds for such purposes. L~nder may disburse I?roceeds for
<br />the repairs and restoration in a single payment or in a series of progress payments as th~ work is. completed. If the ,msur~nce. or
<br />condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not reheved of Borrower s obhgatlon
<br />for the completion of such repair or restoration.. .. .
<br />Lender or its agent may make reasonable entnes upon and mspeCtlons of .the Property. If. it has rea.sonabl.e cau~e,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notlce at the time of or pnor
<br />to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or
<br />any persons or entities acting at the direction of Borrower or with B~rrower's kn?wledge or c~nsent ga~e ~ateriall~ fals~,
<br />misleading, or inaccurate information or statements to Lender (or falled to proVide Lender With matenal information) m
<br />connection witl1 tl1e 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 (a) Borrower falls
<br />to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might
<br />significantly affect Lender' s interes~ in the. Pr~)perty and/or rights unde~ th~s Secu.rity Instrum~nt (~uc.h as a pro~eeding ,in
<br />bankruptcy, probate, for condemnatlon or forfeiture, for enforcement of a hen which may attam pnonty over tl1iS Secunty
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoned tl1e 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 tl1e value of tl1e Property, and securing and/or repairing the Property. Lender's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien which has priority over tl1is Security Instrument; (b)
<br />appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under tl1is
<br />Security Instrument, including its secured position in a bankruptcy proceeding. Securing tl1e Prol?erty, includ~s, but is not
<br />limited to, entering the Property to make repairs, change locks, replace or board up doors and wmdows, dram water from
<br />pipes, eliminate building or other code violations or dangerous conditions, ap.d have utilities turned on or. off: Altl10ugh Lend~r
<br />may take action under this Section 9, Lender does not have to do so and is not under any duty or obhgatlon to do so. It is
<br />agreed that Lender incurs no liability for not taking any or all actions authorized under tl1is Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by tl1is
<br />Security Instrument. These amounts shall bear interest at tl1e Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower shall comply witl1 all the provisions of the lease. If Borrower
<br />acquires fee title to tl1e Property, the leasehold and tl1e 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
<br />pay tl1e premiums required to maintain tl1e Mortgage Insurance in effect. If, for any reason, tl1e Mortgage Insurance coverage
<br />required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay tl1e
<br />premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost
<br />substantially equivalent to the cost to Borrower of tl1e Mortgage Insurance previously in effect, from an alternate mortgage
<br />insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to
<br />pay to Lender the amount of the separately designated payments tl1at were due when the insurance coverage ceased to be in
<br />effect. Lender will accept, use and retain tl1ese payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve shall be non-refundable, notwithstanding tl1e fact that tl1e Loan is ultimately paid in full, and Lender shall not be
<br />required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if
<br />Mortgage Insurance coverage (in tl1e amount and for tl1e period that Lender requires) provided by an insurer selected by Lender
<br />again becomes available, is obtained, and Lender requires separately designated payments toward tl1e premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until
<br />termination is required by Applicable Law. Notl1ing in tl1is Section 10 affects Borrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases tl1e Note) for certain losses it may incur if
<br />Borrower does not repay tl1e 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 time to time, and may enter into
<br />agreements witl1 otl1er parties that share or modify tl1eir risk, or reduce losses. These agreements are on terms and conditions
<br />tl1at are satisfactory to tl1e mortgage insurer and tl1e otl1er party (or parties) to tl1ese agreements. These agreements may require
<br />tl1e mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may
<br />include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of tl1e Note, anotl1er insurer, any reinsurer, any other entity, or
<br />any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's
<br />risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of insurer's risk in exchange for a
<br />share of the premiums paid to the insurer, tl1e 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. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid to Lender.
<br />If tl1e 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 tl1e right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property
<br />to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly.
<br />Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous
<br />Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by tl1is Security Instrument, whether or not then due, with the excess. if any, paid to Borrower.
<br />Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
<br />In tl1e event of a total taking, destruction, or loss in value of tl1e Property, tl1e Miscellaneous Proceeds shall be applied
<br />to the sums secured by tl1is Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Form 3028 1/01
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<br />(page 4 of 7 pages) ~ 4" ~
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<br />200896512
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<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
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<br />Bankers Systems, Inc" St. Cloud. MN Form MD.1.NE 8/17/2000
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