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<br />7. Preservation, Maintenance and Protection of the Property; Ix-spections. 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 front deteriorating or decreasing in value
<br />due to its condition. Unless it is determined pursuant 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 damage. If insurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the property, Borrower shall be responsible for
<br />repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender tnay disburse proceeds for
<br />the repairs and restoration in a single payment or in a series of progress payments as the work is completed. It' the insurance or
<br />condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not. relieved of Borrower's obligation
<br />for the completion of such repair or rest.nration.
<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 imprnvecnents on the Property. Lender shall give Borrower notice at the time of or prior
<br />to such an interior inspection specifying such reasonable cause.
<br />$. Borrower's Loan Application. Horrowcr shall he in default if, during the I.,oan application process, Borrower or
<br />any persons or eatities acting at the direction of Horrowcr or with Borrower's knowledge or consent gave materially false,
<br />misleading, or inaccurate information or statetncnts to Lender (or Failed t.o provide Lender with material itformation) in
<br />connection with the 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) Harrower fails
<br />to perform the covenants and agreements contained in this Security Instrument, (h) there is a legal proceeding that might
<br />significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in
<br />bankruptcy, probate, for condemnation or forfeiture, for enforceiitent of a lien which may attain priority over this Security
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then I.,ender tnay 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 o1' the Property, and securing and/or repairing the Property. I..cnder's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Securtty Instrument; (b)
<br />appearing in court; and (c) paying reasonable attorneys' fees to protect its interest to the Property and/or rights under this
<br />Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not
<br />limited to, entering the Property to make repairs, change locks, replace or hoard up doors and windows, drain water from
<br />pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or oFF. Ahhough Lender
<br />may 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
<br />agreed that Lender incurs no liability for not taking any or all actions authorized under this Seaton 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Horrowcr secured by this
<br />Security Instrument. These amounts shall bear interest at the Notc rate from the date of disbursement and shall he payable, with
<br />such interest, upon notice from Lender to Horrowcr requesting payment.
<br />If this Security Instrument is on a leasehold, Horrowcr shall comply with all the provisions of the lease. IF Borrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless l.cnder agrees to the merger is writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall
<br />pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage
<br />required by Lender ceases to he available from the tztortgage insurer that previously provided such insurance and Borrower was
<br />required to make separately designated payments toward the premiuttis for Mortgage Insurance, Borrower shall pay the
<br />premiums required to obtain coverage substantially eyuivalent to the Mortgage Insurance previously in effect, at a cost
<br />substantially equivalent to the cost to Horrowcr of the 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 that were due when the insurance coverage ceased to be in
<br />effect. Lender will accept, use and retain these payments as anon-refundable loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve shall. be non-refundable, notwithstanding the fact thal the: Loan is ultit~ialely paid in full, and lender shall not be
<br />required to pay Horrowcr any interest or earnings on such loss reserve. lender can iac~ longer reyuii•e loss reserve payments if
<br />Mortgage Insurance coverage (in the amount and For the period that Leader requires) provided by an insurer selected by Lender
<br />again becomes available, is obtained, and Lender rcyuires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a atndituln 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 anon-rd'undable loss reserve, until L,ender's reyuirettient for Mortgage
<br />Insurance cads in accordance with any written agreement between Borrower and L.,ender providing for such termination or until
<br />termination is required by Applicable Law. Nothing in this Section lO affects Iorrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if
<br />Borrower 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 time to tune, and may enter into
<br />agreements with other parties that share or izaodify their risk, or reduce losses. These agreements are on terms and conditions
<br />that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. 'T'hese agreements may requite
<br />the mortgage insurer to make payments using any source of funds that the mortgage msurer ttiay have available (which may
<br />include funds obtained from Mortgage Insurance preniums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another 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 I_,ender takes a share of insurer's risk in exchange for a
<br />share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." h'urther:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Lsurance, nr
<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 aay--with respect to the Mortgage Insurance
<br />under the Homeowlners Protection Act of 1998 or any other law. These rights may hiclnde the right to receive certain
<br />disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance termiuaiated
<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 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
<br />to ensure the work has been completed to Lender's satisfaction, provided that such inspectiota 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 l..aw requires interest to be paid on such Miscellaneous
<br />Proceeds, Lender shall not be required to pay Horrowcr any interest or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasible or L,ender's security would he lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this 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 />Tn the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied
<br />to the sums secured by this Security Instrument, whether or not. then due, with the excess, if any, paid to Harrower.
<br />Form 3028 71n7
<br />NEBRASKA-Single Family-Fannie MaelFreddie Mac UNIFORM INSTRUMENT .-~ _,,,.
<br />8ankors Systems, Inc., St. Cloud, MN Form Mp~ 1-NE 9/1712000 (PbR~' '~ ~~~ ~!xlRa~+'1 ~ ~.
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