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<br /> 200905813
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<br /> determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal
<br /> Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection
<br /> by Borrower.
<br /> If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br /> Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of
<br /> coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the
<br /> Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage
<br /> than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly
<br /> exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall
<br /> become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate
<br /> from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br /> payment.
<br /> All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br /> disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an
<br /> additional loss payee, Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower
<br /> shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any for in of insurance
<br /> coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a
<br /> standard 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 may make proof
<br /> of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br /> whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if
<br /> the 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 /> Property to ensure the work has been completed to Lender'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 agreement is made 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
<br /> for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be
<br /> the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be
<br /> lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,
<br /> with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br /> If Borrower abandons the Property, Lender may tile, negotiate and settle any available insurance claim and related
<br /> matters. 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 lender 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 Propertyunder 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 Instrument,
<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 Property, insofar as such rights are applicable to the coverage of the Property. Lender may
<br /> use the 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
<br /> 60 days after the execution 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
<br /> of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Borrower'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-
<br /> on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to
<br /> prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to
<br /> Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to
<br /> avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the
<br /> taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released
<br /> proceeds for such 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 sufficient to repair or
<br /> restore the Property, Borrower is not 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 the time of or
<br /> prior to such an interior inspection specifying such reasonable cause.
<br /> Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
<br /> Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave
<br /> materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material
<br /> information) in connection with the Loan. Material representations include, but are not limited to, representations concerning
<br /> Borrower's 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) there is a legal
<br /> proceeding that might significantly affect Lender's interest in the Property and/or rights under this SecurityInstrument (such
<br /> as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority
<br /> over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br /> may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this
<br /> Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the
<br /> Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over
<br /> this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the
<br /> Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing
<br /> the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors
<br /> and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities
<br /> turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any
<br /> duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this
<br /> Section 9.
<br /> Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br /> Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,
<br /> with such interest, upon notice from Lender to Borrower requesting payment.
<br /> If this Security Instrument is on a leasehold, Borrower shag comply with all the provisions ofthe lease. If Borrower
<br /> acquires fee title to 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,
<br /> Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage
<br /> Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such
<br /> NEBRASKA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (MFRS) Form 3028 VOI (page 4 of8 pages)
<br /> 12439.CV (11/07) 4200366 Creative Thinking, Inc.
<br /> GOTp(002a4da0)
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