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201103379
<br />determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal
<br />Emergency Management Agency in connection with the review of any flood zone determination resulting from an obj ection
<br />by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of
<br />coverage. Therefore, such coverage shall cover I.ender, but might or might not protect Borrower, Borrower's equity in the
<br />Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage
<br />than was previously in effect. Borrower acknowledges that the cost ofthe insurance coverage so obtained might significan�tly
<br />exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Seci7on 5 shall
<br />become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate
<br />from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Bonower requesting
<br />payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to I.ender's right to
<br />disap�rove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an
<br />addit�onal loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower
<br />shall promptly give to Lender all receipts ofpaid premiums and renewal notices. IfBorrower obtains any form of insurance
<br />coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a
<br />standard mortgage clause and shall name Lender as mortgagee and/or as an additionalloss payee.
<br />In the event of loss, Bonower shall give prompt notice to the insurance carrier and Lender. L.ender maymake proof
<br />of loss if not made promptl�+by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance procceds,
<br />whether or not the underl}nng insurance was required by Lender, shall be applied to restoration or repau of the Property, if
<br />the restorarion or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to hold such insurance proceeds until Lender has had an opporlunity to inspect such
<br />Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may disburse proceeds for the repairs and restoration m a single payment or in a series of progress
<br />payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid
<br />on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees
<br />for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be
<br />the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be
<br />lessened, the u�surance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />IfBorrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower does not respond within 3 0 days to a nohce from I.ender that the insurance carrier has o�ered to settle a
<br />claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either
<br />event, or ifLender acquues the Propertyunder Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
<br />rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Insirument,
<br />and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Bonower) under all
<br />insurance policies covering the Property, insofar as such rights are applicable to the coverage ofthe Properly. Lender may
<br />use the insurance proceeds either to repa�r or restore the Property or to pay amounts unpaid under the Note or this Security
<br />Instrument, whether or not then due.
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
<br />60 days after the execution of this Security Instrument and shall continue to occupy the Property as Bonower's principal
<br />residence for at least one year after the date
<br />of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br />extenuatmg cucumstances exist which are beyond Borrower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
<br />damage or impair the Property, a11ow the Property to deteriorate or commit waste
<br />on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Pro�erty in order to
<br />prevent the Property from deteriorating or decreasing m value due to its condition. Unless it is deternuned pursuant to
<br />Section 5 that repau or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to
<br />avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the
<br />taking of, the Property, Borrower shall be responsible for repairnig 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 a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufi'icient to repair or
<br />restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.
<br />Lender or rts agent may make reasonable entries upon and uispections of the Property. If it has reasonable cause,
<br />Lender may inspect the interior of the improvements on the Properly. Lender shall give Borrower notice at the time of or
<br />prior to such an mterior 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 actuig at the direction of Borrower or with Borrower's knowledge or consent gave
<br />materially false, rrnsleading, or inaccurate information or statements to Lender (or failed to provide Lender with material
<br />information) in connection wrth the Loan. Material representations include, but are not limitedto, representations concerning
<br />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
<br />(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal
<br />proceeding that rnight significantly affect Lender's interest in the Property and/or rights under this SecuntyInsWment (such
<br />as a proceedmg in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority
<br />over this Secunty Instrument or to enforce laws or regulations), or (c) Bonower has abandoned the Property, then Lender
<br />may do and pay for whatever is reasonable or appropnate to protect Lender's interest in the Property and nghts under this
<br />Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the
<br />Property. Lender's actions can mclude, but are not limited to: (a) paying any sums secured by a lien which has priority over
<br />this Security Instrument; (b) a�pearin� in court; and (c) paying reasonable attorneys' fees to protect its interest in the
<br />Property and/or rights under tlus Secunty Instrument, including its secured position in a bankruptcy proceeding. Securing
<br />the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors
<br />and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities
<br />turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any
<br />duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this
<br />Section 9.
<br />Any amounts disbursed by Lender under this 5ection 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,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />Ifthis Security Instrument is on a leasehold, Bonower shall comply with all the provisions ofthe lease. IfBorrower
<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. ff Lender required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage
<br />Insurance coverage requ�red by Lender ceases to be available from the mortgage insurer that previously provided such
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac iJNIFORM INSTRLJMENT (MERS)
<br />12439.CV (1/08) 904200
<br />Form 3028 1/Ol (page 4 of8 pages)
<br />Crearive Tlunlung, Inc.
<br />GOTO(00163db6)
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