|
<br />
<br /> 201001215
<br />
<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 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 may disburse proceeds for
<br /> the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If 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 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 prior
<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 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 /> 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) Borrower fails
<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 interest in the Property and/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 to 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 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 this Security Instrument; (b)
<br /> appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in 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 board 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. Although 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 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, with
<br /> such 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
<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, 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 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 the
<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 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 a non-refundable loss reserve in lieu of Mortgage Insurance. Such
<br /> loss reserve shall be non-refundable, notwithstanding the fact that the 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 the amount and for the period that Lender requires) provided by an insurer selected by Lender
<br /> again becomes available, is obtained, and Lender requires separately designated payments toward the 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. Nothing in this 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 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 time, and may enter into
<br /> agreements with other parties that share or modify 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. These agreements may require
<br /> the 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 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 Lender 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, " 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 /> (h) 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 ortgage 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 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 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 /> In 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 Borrower.
<br /> NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
<br /> Bankers Systems, Inc., St. Cloud, MN Form MU-1-NE 8/17/2000 (page 4 of 7pages)
<br />
|