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<br />determination or certification. Borrower shall also be responsible for the payment of any fees impased by the Pederal
<br />Emergency Management Agency in connection with the review of any flood zone determination 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 />I..ender's option and Bor► expense. Lender is under no obligation to purchase any particular type or amount of
<br />coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Sorrower'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 significandy
<br />exceed the cost of insurance that Borrower 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 arnounts shall bear interest at the Note rate
<br />from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
<br />payment.
<br />All insurance policies required by L.ender and renewals of such policies shall be subject to Lender's right to
<br />disa��rove such policies, shall include a standard mortgage clause, and shall name I.ender as mortgagee and/or 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 notices. If Borrower obtains any form of insurance
<br />coverage, not otherwise required by I.ender, for damage to, or destruction of, the Property, such policy shall include a
<br />standard mortgage clause and shall name L.ender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall bive prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not made promptly by Borrower. Unless Lender and Borrower 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 L.ender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to hold such insurance procaeds until I,ender has had an opportumty to inspect such
<br />Property to ensure the work has been completed to Lender's satisfaction, 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 />payments as the work is completed. Unless an agreament is made in writing ot Applicable Law requires interest to be paid
<br />on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower shal l not be paid nut 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 msurance proceeds shall be applied to the sums secured by this Securit� Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied m the order provided for in Section 2.
<br />IfBorrower 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 from Lender that the insurance carrier has offered to seitle a
<br />claim, then I.ender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either
<br />event, or ifLender acquues the Propertyunder Seccion 22 or otherwrse, 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 or this Securiry Instrurnent,
<br />and (b) any other of Borrower's rights (othec 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 coverage of the Property. Lender may
<br />use the insurance proceeds either to repa�r ar restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Oeeupancy. Bor► shall occupy, establish, and use the Property as Borrower's principal residence within
<br />60 days after che execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date
<br />of occupancy, unless I,ender 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 �nd Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, allow the Properiy to deteriorate or commit waste
<br />on the Property. Whether or not Borrower is residing itt the Properiy, Borrower shall maintain the Pro�erty in arder to
<br />prevent the Properiy from deteriorating or decreasing m value due to its condition. i7nless it is determmed pursuant to
<br />Section 5 that repair ar restoration is not econamically feasible, Borrower shall promptly reparr the Property if damaged to
<br />avoid further deterioration or damage. If insurance or condernnation 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
<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 condemnatinn proceeds are not suf�icient to repair or
<br />restore the Property, Borrower is not relieved of Borrower's obligation for the completion af such repair or restoration.
<br />Lender or rts agent may make reasonable entrias upon and inspections ofthe Property. If it has reasonable cause,
<br />I.ender may inspect the mterior of the imt rovements 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 Laan Application. Borrower shall be in default if, during the I.oan applicatron process,
<br />Borrower or any persons ar entities acting at the direction of Borrower or with Borrower's knowledge or consent gave
<br />rnateriall� false, m�sleading, or inaccurate mformation or statements to Lender (or failed to provide Lender with rnaterial
<br />information) in connection with the Laan. Material representations include, but are not limited to, representations concerning
<br />Borrower's occupancy of the Property as Borrower's principal residence.
<br />9. Protectian of Lender's Interest in the Property and Rights Under 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 PropeRy and/or rights under this SecurityInslrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement oFa lien which may attain priority
<br />over this Security Instrument or to enfarce laws or regulations), or (c) Borrower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropriate to protect L.ender's interest in the Property and rights under this
<br />Security Instrument, including protecting and/or assessing the value nf the Property, and securing and/or repairing the
<br />Froperty. Lender's actions can mclude, but are not limited to: (a) payin� any sums secured by a lien which has priority over
<br />this Security Instrument; (b) a�pearing in court; and (c) payin� reasonable attorneys' fees to protect it�s interest in the
<br />Property and/or right�s under thts Security Instrument, including its secured position in a bankruptcy proceeding. 5ecuring
<br />the Property includes, but is not limited to, entering the Properiy to make re�airs, change locks, replace or board up doors
<br />and windows, drain water from pipes, eliminate butiding or other code violations or dangerous conditions, and have utilities
<br />turned on or off. Althaugh I.ender may take action under this Section 9, Lender does not have to do so and is not under any
<br />duty or obligation to do so. It is agreed that L.ender 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 InsCrument. These arnounts shall bear interest at the Note rate from the date of disbursement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrurnent is on a leasehold, Borrower shall cornply with all the provisions of the lease. IfBorrower
<br />acquires fee title to the Property, the leasehold and the fee tide 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 L,oan,
<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 mortgaga insurer that previously provided such
<br />NF,BRASKA--Single Family—Fannie Mae/Freddle Mac T.TNiFpRM INSTI2UMENT (MERS) Form 3028 1/Ol (page 4 of8 pages)
<br />12439.CV (1/08) 904737 Creative Thinking, Inc.
<br />GOTO(0013d989)
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