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201103��2
<br />7. Preservation, Maintenance and Protection of the Property; Inspect3ons. Borrower shall not destroy, damage or
<br />impair the Property, a11ow the Properiy to deteriorate or commit waste on the Property. Whether or not Borrower is residing in
<br />the Property, Borrower shall maintain the Properiy in order to prevent the Pro�eriy from deteriorating or decreasing in value
<br />due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If iasurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for
<br />repairing or restoring the Properiy only if Lender has released proceeds for such putposes. Lender may disburse �roceeds for
<br />the repairs and restoration in a single �ayment or in a series of progress payments as the work is completed. If the msurance or
<br />condemnation �roceeds are not suffic�ent to repair or restore the Property, Borrower is not relieved of Borrower's obligation
<br />for the completion of such repair or restoration.
<br />Lender or its agent may make reasona.ble entries upon and inspections of the Properly. If it has reasonable cause,
<br />Lender ma�+ inspect the interior of the improvements on the Properly. Lender sha11 give Borrower notice at the time of or prior
<br />to such an mterior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Applicallon. Borcower shall be in default if, 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, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
<br />connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's
<br />occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Ri�hts Under this Security Instrument. If (a) Borrower fails
<br />to perform the covenants and agreements contained in this Security Iastrument, (b) there �s a legal proceeding that might
<br />significantly affect Lender's interest in the Properiy and/or rights under this Security Instrument (such as a proceeding in
<br />banlzruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Securiry
<br />Instrument or to enforce laws or regulations), or (c) Bonower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasona.ble or appropriate to protect Lender's interest in the Properly and rights under this Securiry Instrument,
<br />including protecting andJor assessing the value of the Property, and securing and/or repairing the Property. Lender's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien wh'rch has prioriry over this 5ecurity Instrument; (b)
<br />appearing in court; and (c) paying reasonable attorneys' fees [o protect its interest in the Property and/or rights under this
<br />Securiry Instrument, iucluding its secured position in a bankruptcy proceeding. Securing the Properiy 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, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender
<br />may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is
<br />agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
<br />Any amounts disbursed by Lender under this 5ection 9 shall become additional debt of Borrower secured by this
<br />Securiry Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, ugon notice from Lender to Borrower requesting payment.
<br />If this Securiry Instrument is on a leasehold, Borrower shall comply with a11 the provisions of the 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 in writing.
<br />10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower sha11
<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 previously provided such insurance and Borrower was
<br />required to make separately designated payments toward 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 previously in effect, from an alternate mortgage
<br />insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower sha11 continue to
<br />pay to Lender the amount of the separately designated payments 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 is ultimately paid in full, and Lender shall not be
<br />required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if
<br />Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender
<br />again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make
<br />separately designated payments toward the premiums for Mortgage 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 accorda.nce with any wriuen agreement between Bonower and Lender providing for such termination or until
<br />termination is required by Applicable Law. Nothing in this 5ection 10 affects Borrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if
<br />Borrawer does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into
<br />agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions
<br />that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require
<br />the mortgage insurer to ma.ke payments using any source of funds that the mortgage insurer may have a�ai(able (which may
<br />include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or
<br />any affiliate of any of the foregoing, may receive (direcdy or indirecfly) amounts that derive from (or might be characterized
<br />as) a gortion of Bonower's payments for Mortgage Insurance, in exchange for sharing or modifying the moctgage insurer's
<br />risk, or reducing losses. If such agreement provides that an a.ffiliate of Lender takes a share of insurer's risk in exchange for a
<br />share of We premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agre�ed to pay for Mortgage Insurance, or
<br />any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance,
<br />and they will not entitle Borrower to any refund.
<br />(b) Any such agreements will not affect the rights Borrower has--if any--with respect to the Mortgage Insurance
<br />under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain
<br />discl�ures, to reqaest and obtain cancellation of the Mortgage L�surance, to have the Mortgage Insurance terminated
<br />antomatically, andlor to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such
<br />cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid to 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 feasible and Lender's securiry is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportuniry to inspect such Property
<br />to ensure the work has been completed to Lender's satisfaction, provided that such inspection sha11 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 ea.rnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasible or Lender's securiry would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Securiry Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds sha11 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 Properly, the Miscellaneous Proceeds shall be applied
<br />to the sums secured by this Securiry Instrument, whether or not then due, with the excess, if any, paid to orrower.
<br />NEBRASKA—Single Family—Fanrde MaelFreddie Mac UNIFORM INSTRUMENT Form 3028 1/01
<br />Bankers Syeteme, Inc., St. Cloud, MN Form MD-I-IVE 8l17/2000 {page 4 of 7 pCtges)
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