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2010090�5
<br />aze applicable to the caverage of the Froperty. Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amaunts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as $orrawer's principal residence
<br />within 60 days after the execution of this Security Instrument and shall continue to occupy the Prpperty as Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Prqperky; Inspections. Borrower shall not destroy,
<br />damage or impair the Praperty, allow the Property to deteriorate or commit waste on the Property. Whether or not
<br />Bonower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from
<br />deteriorating or decreasing in value due to its condition. Unless it is deternuned pursuant to Section 5 that repair or
<br />restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further
<br />deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking
<br />of, the Property, Borrower shall be responsible for repairing nr restoring the Property only if L.ender has released
<br />proceeds for such purposes. Lendcr may disburse proceeds for the repairs and restaration in a single payment or in
<br />a series of progress payments as the work is completed. If the insurance or condernnatian proceeds are not sufficient
<br />to repair ar restore the Property, Borrower is not relieved of Bnrrower's obligation for the completion of such repair
<br />or restoration.
<br />Lender or its agent may rnake 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
<br />of or prior to such an interiar inspection 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 consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with
<br />material information) in connection with the L.oan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the ProperCy as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
<br />Borrower fails to perform the covenants and agreements contained in this Security Instrurnent, (b) there is a legal
<br />proceeding that might signi�cantly affect Lender's interest in the Property and/or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, prabate, for condemnation or forfeiture, for enforcement of a lien which rnay
<br />attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the
<br />Froperty and rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums
<br />secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees to protect its interest in the Property and/ar rights under this Security Instrument, including its secured
<br />position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make repairs, change locks, replace or board up doors and windows, drain water frarn pipes, elimir►ate building or
<br />other code violations or dangexous conditions, and have utilities turned pn or off. Although Lender may take action
<br />under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that
<br />Lender incurs no liability for nat taking any or a11 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 Instrurnent. These amounts shall beax interest at the Note rate from the date of disbursement and shall be
<br />payable, 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.
<br />Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease.
<br />Borrower shall not, without the express written cansent of Lender, alter or amend the ground 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
<br />in writing.
<br />10. Mortgage Insuurance. If Lender required Mortgage Insurance as a condiCion of making the Loan, Borrower
<br />shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage
<br />Insurance coverage required by Lender reases to be available from the mortgage insurer that previausly provided such
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage
<br />Insurance, Borrower shall pay the prexniums required to obtain coverage substantially equivalent to the Mortgage
<br />Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance
<br />previously in effect, from an altemate mortgage insurer selected by Lender. If substanti�lly equivalent Mortgage
<br />Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated
<br />payrnents that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these
<br />payrnents as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable,
<br />notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any
<br />interest or earnings on such loss reserve. I,.ender can no longer require loss reserve payments if Mortgage Insurance
<br />coverage (in the amount and for the period that Lender requires) provided by an insurer selected by I.ender again
<br />becomes available, is obtained, and Lender requires separately designated payments toward the premiums for
<br />Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the I.,oan and Borrower was
<br />required to make sepazately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay
<br />the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until
<br />i.ir»drr'r r�quis�ment for Mart��o In�uranc� ends in accardance with any written agreement between Borrower and
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<br />NEBRASKA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DocMagic s� soo-sas•�ssz
<br />Form 3028 1/01 Page 5 of 11 www.dacmagic.com
<br />Nc3028.dot.�unl
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