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<br />7. Pr�ervation, Maintenance and Protect�on of the Property; Inspections. Borrower sha11 not destroy, damage or
<br />impair the Property, a11ow the Property to deteriorate or commit waste on the Properly. Whether or not 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. Ualess it is detennined pursuant to Section 5 that repair or restoration is not economically feasible,
<br />Borrower sha11 promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
<br />condemnation proceeds are paid in connection with damage to, or the taking of, the Pcoperty, Borrower shall be responsible for
<br />repairing or restozing the Property only if Lender has released proceeds for such purposes. 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 . groceeds are not suffictent �o 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 Property. If it has reasonable cause,
<br />Lender ma� inspect the interior of the improvements on the Property. Lender sha11 give Bonower notice at the time of or prior
<br />to such an mterior inspection specifying such reasonable cause.
<br />8. Borrower's Loan AppHcation. Borrower sha11 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 maxerially 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 Bonower's
<br />occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Properiy and Rights Under this 5ecurity Instrument. If (a) Borrower fails
<br />to perform the covenants and agreements contained in this Secunty Instrument, (b) there is a legal proceeding that might
<br />signif'icantly affect Lender's interest in the Property and/or rights under this Security 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 />Instnunent or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument,
<br />including protecting and/or assessing the value of the Property, and securing and/or repairing the Properiy. Lender's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien which has prioriry over this Security Iastrument; (b)
<br />appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Properly and/or rights under this
<br />Securiry Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not
<br />limited to, entering the Properly to make repairs, change locks, replace or board up d�rs and windows, drain water from
<br />pipes, eliminate building or other code violatioas 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 awhorized 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 shail bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lender to Bonower 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 tide 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 Bonower 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 alteroate 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 Insura.nce coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender
<br />again becomes a�ailable, is obtained, and Lendet requires separately designated payments toward the premiums for Mortgage
<br />Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Bonower was required to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurauce in effect, or to provide a non refundable loss reserve, until Lender's requirement for Mortgage
<br />Iasurance ends in accordance with any written agreement between Bonower and Lender providing for such termination or until
<br />termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate
<br />provided in the Note.
<br />IViortgage Insurance reimburses Lender (or any entiry that purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the Loan as agteed. Bonower is not a parly to the Mortgage InsUtra.nce.
<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 sh�re or modify their risk, or reduce tosses. These' agreements are on terms and conditions
<br />that are satisfactory to the mortgage insurer and We other party (or parties) to these agreements. These agreements may require
<br />the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may
<br />include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any �urchaser of the Note, another insurer, any reinsurer, any other entity, or
<br />any affiliate of any of the foregoing, may receive (direcdy or indirectly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's
<br />risk, 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 premiuuts paid to the insurer, the arrangement is often tecYned "captive reinsurance. " Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed 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 a�reem�nts will not affect the rights Borrower has--if any--with respect to the Mortgage Insurance
<br />under the Homeowners Protection Act of 1�8 or any other law. These rights may include the right to receive certain
<br />discl�ures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
<br />automatically, and/or to receive a refund of any Mortgage Lisurance premiums that were wnearned 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 Properly is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Properly, if the
<br />restoration or repair is econotnically feasible and Lender's security 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 opgortuniry to insgect such Property
<br />to ensure the work has been completed to Lender's satisfaction, provided that such �inspection sha11 be undertaken prompdy.
<br />Lender may ,pay for the repairs anfl 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 rec�uired to pay Borrower any interest or earnings on such� Miscellaneous Proceeds. If the
<br />restoration or repair is not econouucally feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this 5ecurity 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 Pro�rty, the Miscellaneous Proceeds shall be applied
<br />to the sums secured by this Securiry Instrument, whether or not then due, with [he excess, if any, paid to Borrower.
<br />NEBRASKA—Single Family—Fannie MaelFreddie Mac UNIFORM INSTRUMENT Form 3028 1I01
<br />Bankers Systems, Inc., St. Cloud, Mfd Form MD-1-NE 8f17/2000 {(Mge 4 of 7 pages)
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