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201002514
<br />negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Froperty
<br />under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to
<br />exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any
<br />refund of uneamcd premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to
<br />the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under
<br />the Note or this Security Instrument, whether or not then due.
<br />ti. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the
<br />execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after
<br />the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating
<br />circumstances exist which are beyond Borrower's control,
<br />7. Preservation, Maintenance and Protection of the Property; inspections. Borrower shall not destroy, damage or impair the
<br />Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower
<br />shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
<br />determined pursuant to Section 5 that repair ar restoration is not economically feasible, Borrower shall promptly repair the Property if
<br />damaged to 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 proceeds for such
<br />purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work
<br />is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of
<br />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, Lender may
<br />inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of ar prior to such an interior
<br />inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or
<br />entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate
<br />information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material
<br />representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal
<br />residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform
<br />the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's
<br />interest In the Property and/or rights under this Security Instrument (such. as a proceeding in bankruptcy, probate, for condemnation or
<br />forfeiture, for enforcement of a lien which may attain priority over this Security Instrument ar to enforce laws or regulations), or
<br />(c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest
<br />in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing
<br />and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority
<br />over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or
<br />rights under this 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 pipes, eliminate
<br />building or other coda violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this
<br />Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not
<br />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 Security
<br />Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon
<br />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 fee
<br />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 pay the
<br />premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender
<br />ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately
<br />designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage
<br />substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
<br />Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage
<br />Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were
<br />due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as anon-refundable loss reserve
<br />in lieu of Mortgage Insurance. Such lass reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full,
<br />and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve
<br />payments if 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 Insurance. If
<br />Lender required Mortgage Insurance as a condition of making the Loan and Bon-ower was required to make separately designated payments
<br />toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
<br />provide anon-refundable loss reserve, until Lender's requirement far Mortgage Insurance ends in accordance with any written agreement
<br />between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10
<br />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 does not
<br />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 agreements with
<br />other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the
<br />mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments
<br />using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance
<br />premiums).
<br />As a result of these agreements, Lender, any purchaser of the note, another insurer, any reinsurer, any other entity, or affiliate of
<br />any of the foregoing; may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's
<br />payments for Mortgage Insurance, in exchange for sharing or modi `tying the mortgage insurer's risk, or reducing losses. If such agreement
<br />provided that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the
<br />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 any other
<br />terms of the Loan. Such agreements will not increase the amount Borrower will owe For Mortgage Insurance, and they will not
<br />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 under
<br />the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to
<br />NEBRASKA -Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT with MERE ~rtin 3028 1101
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<br />ios, inc. Borrower(s) Inltlals
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