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201006303
<br />determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal
<br />Emergency Management Agency in cvnnectivn with the review of any hood cone deterlninatlvn 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 yr amount of
<br />caverage. "Therefore, such coverage shall cover Lender, but might yr 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 sipni ficantly
<br />exceed the cost of insurance that l3vrrvwer 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 frvm Lender to Burrower 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 bender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance
<br />coverage, not otherwise required by Lender, for damage to, or destruction of, the Prvperty, such policy shall include a
<br />standard mortgage clause and shall name Lender as mortgagee and/or as an additional lass payee.
<br />In the event of loss, Borrower shall give prom t notice to the insurance carrier and Lender. Lender may make pmof
<br />of loss if not made promptly by Borrower. Unless Lender and Burrower 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 re air is economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to held such insurance proceeds until Lender has had an opportuntty to inspect such
<br />Property to ensure the work has been coin leted to bender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender mad disburse proceeds for the repairs and restoration in a single payment or in a series of progress
<br />payments as the work is completed. i )nless an agreement is made in writing or Applicable Law requires interest to he paid
<br />on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings vn such proceeds. fees
<br />for public adjusters, or ether 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 Barrawer. Such insurance raceeds shall be applied m the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. if Borrower does not respond within 30 days to a notice frvm 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 ifLender acquires the Prvperty under 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 yr 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 cvverage ofthe 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 />(0 days after the execution of this Security Instrument and shall continue to occupy the Property as Bormwer'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 net 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 m 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 of 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 bender has released
<br />proceeds for such purposes. bender may disburse proceeds for the repairs and restoration m 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 tv repair or
<br />restore the Property. Borrvwer is not relieved of Borrower's obligation for the completion of such repair or restoratlvn,
<br />Lender or its agent may make reasonable entries upon and inspections of the Prvperty. 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 />8. Borrower's Loan Application. Borrower shall he in default if; during the Lvan application process,
<br />Borrower or any persons or entities actin at the direction of Burrower or with Borrower's knowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed tv 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 tv perform the covenants and agreements contained in this Security Instrument; (h) there is a legal
<br />proceeding that might significantly affect lender's interest in the Property and/or rights under this Security Instrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forteiture, for enforcement vfa lien which may attain priority
<br />over this Security Instrument or to enforce laws ar regulations), or (c) Borrower has abandoned the Prvperty, then lender
<br />may do and pay fur whatever is reasonable or appropriate tv protect Lender's interest in the Property and rights under this
<br />Security Instrument, including protecting and/or assessing the value of the Prvperty, 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) paym~ 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 nut 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 [,ender may take action under this Sectivn 9, Lender does not have to do so and is not under any
<br />duty yr 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 frvm Lender to Borrower requesting payment.
<br />If this Security Instrument is vn a leasehold, Borrower shall comply with all the provisions ofthe lease. 1fBorrower
<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 />1.0. 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 [1NIFORM INSTRUMENT (MERS) Form 31128 1/Ol (page 4 of 8 pages)
<br />12439.CV (11/07) 6896908440 Creative Thinking, Inc.
<br />(iU"1'a(0028dcdd)
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