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<br />determinatian or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal
<br />Emergency Management Agency in connectian with the review ofany flaad zane determination resulting from an objection
<br />by Barrower.
<br />If Borrower fails to maintain any of the coverages described abave, Lender may obtain insurance coverage, at
<br />Lender's option and Bprrower's expense. Lender is under no obligation ta 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 />Proparty, or the contents oFthe 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 afthe insurance coverage so obtained might significantly
<br />exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by I.,ender under this Section 5 shall
<br />become additianal debt of Barrawer 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, upan 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 mort clause, and shall name Lender as mortgagee and/ar as an
<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. IfLender requires, Borrower
<br />shall promptly give to Lender all receipts of paid premiums and renewal natices. If Borrower obtains any form of insurance
<br />coverage, not otherwise required by Gender, for damage to, or destruction of, the Property, such policy shall include a
<br />standard mortgaga 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 L.ender and Borrawer 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 ofthe Property, if
<br />the restoration or repair is economically feasible and Lender's security is npt 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 />Praperty to ensure the work has been completed to Lender's satisFactiott, 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 />pa�nnents as the work is completed. Unless an agreement is made in writing or Applicable I.aw requires interest to be paid
<br />on such insurance proceeds, Lender shall not be required to pay Barrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower shall not be paid out ofthe insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not econamically feasible or Lender's security would be
<br />lessened, the msurance proceeds shall ba applied to the sums secured by this Security Tnstrument, whether or not then due,
<br />with the excess, if any, paid ta Barrower. Such insurance proceeds shall be applied in the order provided fpr in Section 2.
<br />If Borrower abandons the Property, L,ender may file, negotiate and settle any available insurance claim and related
<br />matters. IFBorrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered ta 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 ifI,ender acquires the Property 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 amaunts 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 coverin� the Property, insot`ar as such rights are applicable to the coverage ofthe Property. Lender may
<br />use the insurance proceeds either to repa�r or restare 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 Aroperty as Borrower's principal residence within
<br />GO days after the execution of this Security Instrument and shall continue to occupy the Property as Barrower's principal
<br />residence for at least one year after the date
<br />of occupancy, unless Lender otherwise agrees in writing, which cansent shall not be unreasonably withheld, or unless
<br />extenuating circumstances exist which are beyand Barrower's control.
<br />'1. Preservation, Maintenance and Protection ofthe Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate ar commit waste
<br />on the Property. Whether or not Borrower is residin�; in the Property, Borrower shall maintain the Property in order to
<br />prevent the Property fram deteriarating or decreasing m value due to its condition. Unless it is determmed pursuant to
<br />Section S that repair or restoration is not economically feasible, Borrower shall pramptly repair the Property ifdamaged to
<br />avoid further deteriaration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the
<br />takin�; 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 suf�icient to repair or
<br />restore the Property, Borrower is not relieved af Borrower's obligation for the completion of such repair or restoratian,
<br />Lender or its a�ent may make reasonable entries upon and inspections oftha Property. Ifit has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Property. Lender shall �ive Borrower notice at the time of or
<br />prior to such an mterior inspectian specifying such reasonable cause.
<br />8. 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 consant 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 l,oan. Material representations include, but are not limited to, representations concerning
<br />Borrower's accupancy ofthe Property as Barrawer's principal residettce.
<br />9. Protection of �,ender's Interest in the Property and Rights [lnder 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 Security Instrument (such
<br />as a proceeding in bankruptcy, probate, for condemnatian or forfeiture, for enforcement afa lien which may attain priority
<br />over this Security Instrument or to enforca laws or regulations), or (c) Borrower has abandoned the Property, then I,ender
<br />may da and pay for whatevar is reasonable or appropriate ta 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/ar repairing the
<br />Property. Lender's actions can mclude, but are not limited tp: (a) paying any sums secured by a lien which has priority over
<br />this Security instrument; (b) appearing in court; and (c) paymg reasonable attarneys' fees to protect its interest in the
<br />Property and/or rights under this Secunty 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 5ection 9, Lender does not have to do so attd is not under any
<br />duty or obligation to do so. It is agreed that Lender incurs no liability far not taking any or all actions authorized under this
<br />Section 9,
<br />Any amounts disbursed by Lender under this 5ection 9 shall become additional debt of Borrower secured by this
<br />Security Instt-ument. These amounts shall bear interest at the Note rate from the date ofdisbursement and shall be payable,
<br />with such interest, upon notice from I�ender to Borrower requesting payment.
<br />Ifthis Security Instrument is on a leasehold, Borrower shall comply with all the provisions afthe lease. IfBorrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless L,ender 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 Mortga�e
<br />Insurance coverage required by 1.ender ceases to be available from the mortgage insurer that previously provided such
<br />NEBRASKA--Single Family—Fannie Mae/Freddie Mac LININORM INSTRLiMCNT (MERS)
<br />124:39.CV (I/08) 904314
<br />Form 3028 1/01 (page 4 nfBpuKes)
<br />Creative'Chinking, Inc.
<br />GOTO(0012f663)
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