|
201104i01
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, dawage or
<br />impair the Property, allow the Progeriy to deteriotate or conunit waste on the Fcoperty. Whe[her or aot Borrower is residing in
<br />the Property, Borrower sha11 maintain the Property in order to prevent the Pro�erty from deteriorating or decreasing in value
<br />due to its condition: Unless it is detenmined pursuant to Section 5 that repa�r or restoration is not economically feasible,
<br />Borrower shali prompfly re�air the Property if damaged to avoid further detetioration or damage. If insurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for
<br />repairin� or resioring the Property oNy if Lender has released proceeds for such purposes. Lender may disburse �roceeds for
<br />the repaus and restoration in a single payment or in a series of progress payments as the work is comgleted. If the msurance or
<br />condemnatic�n �roceeds are not suTficient to repair oz restoce 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 reasonable entries upon and inspections of the Properiy. Tf it has reasonable cause,
<br />Lender ma�r insgect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior
<br />to such an mterior mspection specifying such reasonable cause.
<br />8. Borrower's Loan Applieation. Bonower sha11 be in default if, during the Loan application process, Bonowec or
<br />any persons or entities acting at the direction of Bonower or with Borrower's knowledge or consent gave materia[ty false,
<br />misleading, or inaccurate information or statements to Lender (or failed to provide Lender witk material information) in
<br />conaection with tlte Loau. Material representations include, but are not limited to, representations concerning Borrowet's
<br />occupancy of the Properly as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Riphts Under this 5ecurity Instrument. If (a) Borrower fails
<br />to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal prviceeding that might
<br />significan�ly affect Lender's interest, in the Property and/or rights under this 5ecurity 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 regu(ations), or (c} Borrower has abandoued the Property, then Lender may do and pay for
<br />whatever is reasoaa.ble ot appropriate to protect Leuder's interest in the Property and nghts under this Security I�nstrument,
<br />including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions
<br />can include, but are not linnited to: (a) paying any swms secured by a Iien which has priority over this Securiry Instrument; (b)
<br />appearing in court; aQd (c) paying reasonable auorneys' fees to protect its interest in the Property and/or rights under this
<br />5ecurity lnstrument, including its secured position in a bankruptcy proceeding. Securing the Pro�erty includes, but is not
<br />limited to, entering the Properly to make repairs, change locks, replace or boazd up doors and wmdows, drain water from
<br />pipes, eliminate buiiding or other code violations or da.ngerous conditions, aud have utilities turned on or off. Although Lender
<br />ma.y take action under this 5ection 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 uo liability for not ta.king any or all actions authorized under this 5ection 9.
<br />Any amounts disbursed ,by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Securiry. Instrument. These am6unts sha11 bear iuterest at the Note rate from the date .of disbursement and sha11 be payable, with
<br />such� interest upon nodce 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. If Borrower
<br />acquires fee title to the Property, the ieasehold and the fee title shall not merge unless Lender agrees to the merger in writing:
<br />10. Mortgage Insurance. If Lendez required Mortgage Insurance as a condition of making the Loan, Borrower shall
<br />pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurauce coverage
<br />required by Lender ceases to be available from the mortgage insurer that previously provided such insarance and Borrower was
<br />cequired to make separately designated gayments 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 Bonower of the Mortgage Insurance previously in effect, from an alternate mortgage
<br />iasurer select�i by Lender. If substa.ntiaily equiva(ent Mortgage Insara.nce 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 fall, and Lender shall not be
<br />required to pay Borrower any Intetest or egrnings on such ldss ieserve. 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, aud Lender requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mottgage Iusurance as a condition of making the I.oan and Bonower was requited to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Bozrower sha11 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 written agreement between Borrower and Lender providing for such termination or until
<br />termination is required by Applicable I.aw. Nothing in this Section 10 affects Borrower's obligation to pay interest at tlYe rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lendet (or any entiry that purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on a11 such insurance in force from tinne to time, and may enter into
<br />agreements with�other parties that shace 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 paymeuts using auy source of fands that the mortgag€ insurer may have available (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 entiry, or
<br />any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's pa.yments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's
<br />cisk, or reducing 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 insuret, the arrangexnent is often termed "captive reinsurance." Parther:
<br />(a) Any such agreernents wYl! not affect the amounts that Borrower has agreed to �ay for Mortgage Insurance, or
<br />any ather terms of the Loan. 5uch agreements will not increase the amount Borrower will owe for Mortgage Inswrance,
<br />and they will not entitle Borrower to any refund.
<br />(b) Anq such agreements will not affect the t3ghts Borrower has--lf any--with respect to the Mortgage Insurance
<br />under the Homeowners Pratecdton Act of 1998 or any other law. These rights may include the right to receive certain
<br />discl�ures, to requesk and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
<br />automatically, and/or to receive a refund of any Mortgage Tnsurance preminms that were unearned at the time of such
<br />cancellat�ton or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Prc�ceeds are hereby assigned to and sha11
<br />be paid to Lenfler.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restotation or repair of the Property, if the
<br />restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period,
<br />Lender sha11 ha�e the right to hold such Miscellaneous Proceeds until Lender has had an op�ortunity to inspect such Property
<br />to ensure the work has been campleted to Lendet'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 sha11 not be required to pay Borrower a.ny interest or earntngs on such Misceiianeous Proceeds. If the
<br />testoration or cepair is not economically feascble or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />apglied to. the sums secured by this Security Instrument, , whether or not then due, witl� the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds sha11 be. applied in the order provided for in Section 2.
<br />• In tt�e, eyent of a total ta�ing, destruction, or Ioss 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—Fanrde Mae/Freddie Mao UNiFORM IN3TRUMENT Form 3028 7/01
<br />8ankers Systems, Ire., St. Cloud, MN Form MD-i-NE 8/17J2000 (page 4 of 7pages)
<br />{ , w ii .
<br />
|