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<br />7. Preservatinn, Maintenance and Pratection of the Property; Inspections. $orrower shall not destroy, damage or
<br />impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in
<br />the Property, Borrower shall maintain the 1'roperty in order to prevent the 1'roperty from deterioratiug or decreasing in value
<br />due to its condition. Uniess it is determined pursuant to Section 5 that repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Property if daznaged to avoid further deterioration or damage. If insurance or
<br />condemnation proceeds are paid in connection with darnage to, or the taking of, the Property, Borrower sha11 be responsible for
<br />repairing or resmring the Property only 'rf Lender has released proceeds for such purposes. Lender may disburse proceeds for
<br />the repairs and restoration in a single payznent or in a series of progress paynnents as the work is completed. If the insurance or
<br />condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligatiou
<br />for the completion of such repair or restoration.
<br />Lender or its agent may make reasonable entries upon and inspections of the Praperty. If it has reasonable cause,
<br />Leader may inspect the interior of the improvemeats on the Property. Lender sha11 give Borrower notice at the time of or prior
<br />to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrawer shall he in default if, during the Lnan 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, or inaccurate informatian or statemepts to Lender (oc failed to provide Lender with material information) in
<br />connection with the Loan. Material represeutations include, but are nat limited to, representations concerning Borrower's
<br />occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's L�terest in the Praperty and Rights Under this Security Instrwment. If (a) Borrower fails
<br />to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might
<br />significantly affect Lender's interest in the Froperty and/or rights ander this Securiry Instrument (such as a proceeding in
<br />bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security
<br />Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasonable or appropriate to protect Lender's i�uterest in the Property and rights under this Security Instrument,
<br />including protecting and/oc assessing the value of the Property, and securing and/or repa'rring the Property. Lender's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Secucity Instrument; (b)
<br />appearing in court; and (c) payiug ceaso�nahle attorneys' fees to protect its interest in the Property and/or rights under this
<br />Security Iusttvment, including its secured position in a bankruptcy proceeding. Securing the Prn�erCy includes, but is not
<br />limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from
<br />pipes, elim.inate building or other code vialations ar dangerous canditious, and have utilities turned an or off. Although Lender
<br />may take action under this Section 9, Lender dces not have to do so and is not under any dury or obligation to do sa. It is
<br />agreed ttiat Lender incurs no liability For not taking any or all actions authorized under this Sectiou 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, witl�
<br />such interest, upon notice fram Lender to Borrower requesting payme�at.
<br />If this Security Instrument is on a teasehold, Borrower shall comply with all the provisions of the lease. If Borrower
<br />acquires fee title to the PropeRy, the leasehold and the fee title stiall not merge unless Lender agrees to the merger in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a cond'rtion of making the Loan, Borrower shall
<br />pay the premiums 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 mortgage insurer that previoasly provided such insurance and Borrower was
<br />required to make separately designated payments taward the premiums for Mortgage Insurance, Borrower shall pay the
<br />premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost
<br />substantially equivalent to the cost to Borrower of the Mortgage Insurance previausly in effect, from an alternate mortgage
<br />insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall contiuue to
<br />pay to I,ender ttie atnouat of the separately designated payruents that were due when the insurance coverage ceased to be in
<br />effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve shall be non-refundable, notwithstanding the fact that the Loan 'rs ultimately paid in full, and Lender shall not be
<br />required to pay Borrower any interest or earnings on such loss reserve. Lender can uo longer require loss resecve payments if
<br />Mortgage Insurauce coverage (in the amount and for the period that Leuder requires) provided by an insurer selected by Lender
<br />again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Martgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loau and Borrower was required to make
<br />separately designated payments toward the prerniums for Mortgage Insurance, Borrower shalt pay the premiums required to
<br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirez�aeut for Mortgage
<br />Insurance ends ia accordance with any written agreement between Borravver and Lender providing for such termination or until
<br />termination is requ'rred by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the xate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any ent'rty Chat purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Borrower is not a paRy to the Mortgage Iasnrance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and znay enter into
<br />agreements witk� other paRies that share or modify their risk, or reduce losses. These agreements are on terms and conditions
<br />that are sat'rsfactory to the rnortgage insurer and the other party (or parties) to these agreements. These agreements may require
<br />the mortgage insurer to make payznents using any source of fuuds that the mortgage insurer may have available (which may
<br />include funds obtained from Mortgage Insurance premiurns).
<br />As a result of these agreements, Lender, any purchaser of the Note, another iusurer, any reinsurer, any ather entity, or
<br />any affiliate of any of the fnregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage ian.curer's
<br />risk, or reduciug losses. If such agreement provides 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 arrangement is often ternYed "captive reinsurance." Further:
<br />(a) Any such agreements will unt affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or
<br />any other terms of the Loan. Sach agreements will not increase the amoant Borrower wiU owe for Mortgage Insurance,
<br />and they will not entitle Borrower to any refund.
<br />(b) Any such agreements will not affect the rf�hts Borrower has--if any--with respect to the Mortgage Insurance
<br />under Che Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain
<br />disclosuces, to request and obtain caucellation ot' the Mortgage Insurance, ka have the Mortgage Insurance terminated
<br />automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearnecl at the tinae of such
<br />cancellation or termination.
<br />11. Assignment of Miscellaneous Prceeeds; �'orfeiture. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid tv Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the
<br />restoration or repair is economically feasi6le and Lendet's security is nnt lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such Miscellaneons Proceeds until Lender has had an oppoRuniry to inspect such Property
<br />to ensure the wark has been completed to I.,ender's satis�action, provided that such inspection shall be undertaken promptly.
<br />Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments 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 any interest or earnings on such Miscellaneous Prviceeds. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied ta the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied
<br />to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT rm 3Q2 � 1/01
<br />8ankers Syrtams, Inc., St. Ctaud, MN Fnrm MD-1-NE 8/17l2000 (puge 4of 7pages) '
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