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<br />7. Preservatian, Maiutenance and Protection of the Praperty; Inspections. Borrower shall nat destroy, darnage or
<br />irnpair the Property, allow the Property ta deteriorate or commit waste on the Property. Whether or not Borrower is residing 'rn
<br />the Property, Borrower shall maiataia the Property in order to prevent the Property from deteriorating or decreasing in value
<br />due to its condition. Upless it is determ'rned pursuant ta Sectiou 5 that repair or restoratiou is not economically feasible,
<br />Borrower shall promptly repair the Praperty if damaged to avoid further deterioration or damage. If rnsurance ar
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Barrower shall be responsible for
<br />repairing ar restoring the Property only if I,ender has released proceeds for such purposes. Lender rnay disburse proceeds for
<br />the repairs and restoration in a single payrnent or 'rn a seriea of progress payments as the work is completed. If the rnsurance or
<br />condetnnation proceeds are nat suffictent to repair or restore the Property, Borrower is not relieved of Borrower's obligation
<br />for the cornpletion af such repair or restoration.
<br />t,ender or i[s agent rnay make reasonable entries upon and inspections of the PropeRy. If it has reasonable cause,
<br />Lender may inspect the interior of the improvernents on the Property. Lender shall give Borrower notice at the time of or prior
<br />to such an interiar inspection specifying such reasonable cause.
<br />8. Borrawer's Loau Application. Borrower shall be in default iP, during the Loan application process, Borrower or
<br />any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false,
<br />misleading, ar inaccurate information or statemeuts to Lender (or failed to provide Lender with inaterial inforimation) in
<br />connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's
<br />occupancy of the Praperty as Borrower's principal residence.
<br />9. Protectlon af Leauder's L�terest in the Propert and Rights Upder tlds Security Instrument. If (a) Borrower fails
<br />to perform the covenants and agrebments contaiaet� in t�'rs Securiry Instruraent, (b) there is a legal proceeding that might
<br />signif�canCly affect Lender's interest in lhe Property aud/or rights under this Security Instru.ment (such as a proceeding in
<br />bankruptcy, probate, for condempatiou or forfeiture, for eufarcement of a lien which may attain prioriry over this Security
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoued the Property, then Leuder may do aud pay for
<br />whatever is reasonable or appcopriate to protect Lender's iuterest in the Property and rights under this Security Instrumeat,
<br />including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actious
<br />can include, but are not limited to: (a) paying any sums secured by a lien wtiich has priority over this Security Instrument; (b)
<br />appear'rng iu coart; and (c) paying reasanable attorneys' fees to pratect its interest in the Property and/or rights ander this
<br />Securiry Iustrutnentt, including rts secured position in a bankruptcy proceeding. Securiag the Property includes, but is not
<br />lirnited to, entering the Property to make repairs, change locks, replace or board up doors and wmdaws, drain water from
<br />pipes, eliminate building or other code vialations or daagerous conditiops, and have ut'rlities turned on or off. Although Leuder
<br />may take action under this Section 9, Lender does not have to do sa and is not under any duty or obligation ta do so. It is
<br />agreed that I.,ender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt af Borrower secured by this
<br />5ecurity Instrument. These amounts sha11 bear interesc at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon 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
<br />acquires fee title to the Property, the leasehold and the fee title shall uot merge unless Lender agrees to the merger in writing.
<br />10. Martgage Insurance. IF I,ender required Mortgage Insurance as a condition of rnaking the Loan, $orrower shall
<br />pay the premiurns required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage
<br />required by Lender ceases to be available from the moRgage iusurer that previously provided such iasurance and Borrower was
<br />required to make separately designa[ed pay►nents toward the premiums for Mortgage Insurance, Borrawer shall pay the
<br />premiurns required to obta'rn coverage substantially eqnivalent to the Mortgage Insurance previausly in effect, at a cost
<br />substantially equivalent to the cost to $arrower of the Mortgage Iusurance previously iu effect, from an alternate mortgage
<br />insurer selected by l..ender. If substantially equivalent MoRgage Insurance coverage is not available, Borrower shall continue to
<br />pay to Lender the aznoant of the separately designated payments that were due wheu the 'rnsurance coverage ceased ta he in
<br />effect. Lender will accept, use and retain these paymeuts as a non refundable loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve shall be nt�n-refuudable, �notwixhstanding the fact that the Loap is ultimately paid 'rn full, and Lender shall not 6e
<br />required to pay Borrower any interest or earnings on such loss reserve. Lender can ao longer require loss reserve payments if
<br />Mortgage Insurance coverage (in the arnoaut and for the period that I�ender requires) provided by an insurer selected by Lender
<br />again becomes ava'rlable, is obtained, and Lender requires separately designated payments toward the prerniurns for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a candition of malcmg the Loan and Borrower was required to rnake
<br />separately designated payments toward the prerniums for Mor�gage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends in accordance with any written agreemeut between Borrower and Lender providing for such terminatiop� or until
<br />terwination is required by Applicable Law. Nothing in thrs Sectiou 10 affects Borrower's obligation to pay interest at [he rate
<br />provided in the Note.
<br />Mortgage Insnrance reimburses Lender (or anq entity that purchases the Note) for certain losses it may iacur if
<br />Borrower does not repay the Loan as agreed. Borrower 'rs not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to tirne, and may enter into
<br />agreemeuts with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions
<br />that are sat'rsfactory ta the mortgage insurer and the other party (or parties) to these agreernents. These agreements may require
<br />[he mortgage insurer to make paymcuts using any source of fuuds that the rnortgage insurer rnay have available (which rnay
<br />include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreemeuts, Lender, any �urchaser of the Note, another iasurer, any reinsurer, any other entiry, or
<br />any affiliate of any of the foregoing, rnay receive (d�rectly or indirectly) amounts that derive from (or might be characterized
<br />as) a portiou of Borrower's payments for Mortgage Iusuraace, in exchange for sharing or modifying the mortgage insurer's
<br />risk, or reducing Losses. If such agreemeut pravides that an affiliate of Lender takes a share of insurer's risk in exchange for a
<br />share of the premiums paid to the insurer, the arrangerneut is often termed "captive reinsurance." Further:
<br />(a) Auy such agreements wiA uot affect the amounts that Borrower has agceed to pay for Mortgage Insurance, or
<br />any other ternts of the Laan. Such agreements will uat increase the amount Borro�ver will owe for Mortgage Insarance,
<br />and they will not entitle Borrower to any refund.
<br />(b) An� such agreements will not affect the rights Borrower tias--if auy--with respect to the Mortgage Insurance
<br />under the Homeowuers Protection Act of 1998 ar any other law. These rights may include the right to receive certain
<br />disclasures, to request and obtain cancellation of the Mortgage �nsurance, to have the Mortgage Insurauce ternu�nated
<br />automatically, and/ar to recelve a refund of any Mat rgage Insurance premiurns that were uuearned at the time of such
<br />cancellation or teiv�Ynation.
<br />11. Assigmment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid to Lender.
<br />If the Proper[y is damaged, such Miscellaneous Proceeds shaJl be applied ta restoratiou or repair of the Property, if the
<br />restoratiou or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such Miscellaneous Proceeds until Leuder has had an oppartunity to inspect such Property
<br />to ensure the work has been campleted to Lender's satisfaction, provided that such inspection shall be uudertaken promptly.
<br />Leuder may pay for the repairs and restoration in a single disbursement or in a series of progress payrneuts as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous
<br />Proceeds, Lender shall not be required to pay Borrower auy interest or earnings ou such MiScellaneous Proceeds. If the
<br />restoration or repair is not ecoaomically feasible ar I.ender's security would be lessened, the Miscellaneaus Proceeds shall be
<br />applied to the sums secured by this Security lnstrurnent, wtiether or not thea due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds shall be applied in the order provided for ia Sectiou 2.
<br />Ia the event af a tatal taking, destruction, ar loss in value of the Property, the Miscellaneous Praceeds shall be applied
<br />to the sums sacured by Chis Security Instrwnent, whether or not then due, with the excess, if any, paid to Borrower.
<br />NEBRASKA—Single Family--Fennte Mae/Freddte Mac UNIFORM INSTRUMENT �m 3028 7/01
<br />8ankere Systems, Inc., St. Cloud, MN Form M�-1-NE 8/17/2000 (p4ge 4 of 7 p4ge
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