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201102720 <br />are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the <br />Property or to pay amounts 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 Borrower's principal residence <br />within 60 days after the execution of this Security Instrument and shall continue to occupy the Property 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 Property; Inspections. Borrower shall not destroy, <br />damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not <br />Borrower 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 determined 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 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 <br />a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient <br />to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair <br />or restoration. <br />Lender or its agent may make 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 interior 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 Loan. Material representations include, but are not limited to, <br />representations concerning Borrower's occupancy of the Property 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 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 <br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may <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 />Property 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 /or 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 from pipes, eliminate building or <br />other code violations or dangerous conditions, and have utilities turned on 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 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 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 <br />payable, with 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. <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 consent 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 Insurance. If Lender required Mortgage Insurance as a condition 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 ceases to be available from the mortgage insurer that previously provided such <br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage <br />Insurance, Borrower shall pay the premiums 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 alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage <br />Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated <br />payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these <br />payments 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. Lender 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 Lender 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 Loan and Borrower was <br />required to make separately 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 />Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and <br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT OocMagfc <br />Form 3028 1/01 Page 5 of 11 www.docmagic.com <br />