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20�103677
<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 determinat�on resultmg from an objection
<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, Bonower'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 of the insurance coverage so obtained might significantly
<br />exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 sha11
<br />become additional debt ofBorrower 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 Borrower requesting
<br />payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br />disap�rove such policies, shall include a standard mortgage clause, and shall name I,ender as mortgagee and/or as an
<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. IfLender requires, Borrower
<br />shall promptly give to Lender all receipts ofpaid premiums and renewal notices. IfBonower obtains any form of u�surance
<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 additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may malce proof
<br />of loss if not made promptl� by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlymg msurance was required by Lender, shall be applied to restoration or repau of the Property, if
<br />the restoration 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 opportumty to inspect such
<br />Properly to ensure the work has been comp leted to Lender's satisfaction, provided that such inspechon shall be undertaken
<br />promptIy. 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 Apphcable 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 obhgation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be
<br />lessened, the insurance proceeds shall be applied to the sums secured by this Secunty Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied m the order provided for in Section 2.
<br />IfBorrower abandons the Property, Lender may file, negoriate and settle any available insurance claim and related
<br />matters. If Borrower does not respond within 3 0 days to a notice from Lender that the msurance carrier has offered to settle a
<br />claim, then Lender may negotiate and settle the claun. The 30-day period will begin when the notice is given. In either
<br />event, or ifLender acquires the Property under 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 Secunty Instrument,
<br />and (b) any other ofBorrower's rights (other than the right to any refund ofunearned premiums paid by Borrower) under all
<br />insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may
<br />use the insurance proceeds either to repau 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 da.ys 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 />extenuating circumstances 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, allow the Property to deteriorate or commit waste
<br />on the Property. Whether or not Borrower is residmg in the Property, Borrower shall maintain the Property in order to
<br />prevent the Properly from deteriorating or decreasing m value due to rts condition. Unless it is deternuned pursuant to
<br />Section 5 that repa�r 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 m connection with damage to, or the
<br />taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if I.ender has released
<br />proceeds for such purposes. I.ender may disburse proceeds for the repairs and restoration u► a smgle payment or in a series
<br />of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or
<br />restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restorarion.
<br />Lender or rts agent may make reasonable entries upon and uispections ofthe 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 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 entiries actmg at the direction of Borrower or with Borrower's knowledge or consent gave
<br />materially false, Yrusleading, or inaccurate uiformation or statements to Lender (or failed to provide Lender with material
<br />information) in connection wrth the Loan. Material representations include, but are not limited to, representations concerning
<br />Borrower's occupancy of the Property as Bonower'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 contamed in this Security Instrument, (b) there is a lega]
<br />proceeding that might stgnificantly affect Lender's interest in the Properly and/or rights under this SecuntyInstrument (such
<br />as a proceeding in bankruptcy, probate, for condemnation or forfeiture, �or enforcement of a lien which may attain pnority
<br />over this Security 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 securuig 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 pnorit� over
<br />this Secunty Instrument; (b) a�pearing in court; and (c} payui� reasonable attorneys' fees to protect its interest m 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 uhht►es
<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 Section 9 shall become addirional debt of Bonower 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 Secunty Instrument is on a leasehold, Borrower 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. If Lender required Mortgage Insurance as a condition of making the Loan,
<br />Borrower shall pay the premiums required to rnaintain 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 />NEBRASKA—Single Family—Fanaie Mae/Freddie Mac UNIFORM INSTRUMENT (MERS) Form 3028 1/01 (page 4 of8 pages)
<br />12439.CV (1/08) 905571 Creative Thinking, Inc.
<br />GOTO(00166de1)
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