|
201105iO3
<br />DOC ID #: 00023550326007011
<br />which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such
<br />proceedings aze concluded; or (c) secures &om the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br />this Securiry Instrument. If Lender determines that any paR of the Properry is subject to a lien which can attain prioriry over this
<br />Security Insirument, Lender may give Borrower a no6ce identifying the lien. Within 10 days of the date on which that nofice is
<br />given, Bonower shall sa6sfy the lien or take one or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification andJor reporting service used by
<br />Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage,° and any other hazards including, but not limited to,
<br />earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including
<br />deducdble levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change
<br />during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to
<br />disapprove Borrower's choice, which right shall not be exercised unreasonably. I.ender may require Borrower to pay, in connection
<br />with this Loan, either: (a) a one-time charge for flood zone determination, certifica6on and tracking services; or (b) a one-rime
<br />charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes
<br />occur which reasonably might affecc such determination or certif'ication. Bonower shall also be responsible for the payment of any
<br />fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination
<br />resulting from an objec6on by Borrower.
<br />Tf Borrower fails to maintain any of the covexages described above, Lender may obtain insurance coverage, at Lender's op6on
<br />and Bonower's expense. Lender is under no obligation to purchase any particular rype or amount of coverage. Therefore, such
<br />coverage shall cover Lender, but might or might not protect Borrower, Bonower's equity in the Property, or the contents of the
<br />Properiy, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effec� Borrower
<br />acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Bonower
<br />could have obtained. Any amounts disbursed by Lender under this Section 5 sha1T becorne addi6onal debt of Borrowez secured by
<br />this Securiry Instrumen� These amounts sha11 bear interest at the Note rate Prom the date of disbursement and shall be payable,
<br />with such interest, upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such
<br />policies, shall include a standard mortgage clause, and shall name Lender as mortgagee andlor as an addi6onal loss payee. Lender
<br />shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all
<br />receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by
<br />Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender
<br />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 make proof of loss if
<br />not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not
<br />the underlying in,surance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or
<br />repair is economically feasible and Lender's securiry is not lessened. During such repair and restoration period, Lender shall have
<br />the right to hold such insurance proceeds until Lender has had an opporluniry to inspect such Property to ensure the work has been
<br />completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for
<br />the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is
<br />made in writing or Applicable Law requires interest to be paid on such insurance pmceeds, Lender shall not be required to pay
<br />Bonower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not
<br />be paid out of the insurance proceeds and shall be the sole obliga6on of Borrower. If the restoration or repair is not economically
<br />feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured bq this Security
<br />Inst�vment, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the
<br />order provided for in Section 2.
<br />If Bonower abandons the Properly, Lender may file, nego6ate and settle any available insurance claim and related matters. If
<br />Bonower does not respond within 30 days to a notice &om Lender that the insurance carrier has offered to settle a claim, then
<br />Lender may negotiate and settle the claim. The 30-day period wiIl begin when the notice is given. In either event, or if Lender
<br />acquires the Properiy under Section 22 or otherwise, Bonower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of
<br />Bonower's rights (other than the right to any rafund of unearned premiums paid by Bonower) under all insurance policies
<br />covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds
<br />either to repair or restore the Properly or to pay amounts unpaid under the Note or this Security Instrument, whether or not then
<br />due.
<br />6. Occupancy. Bonower shall occupy, establish, and use the Properry as Bonower's principal residence within 60 days
<br />after the execution of this Security Instrument and shall continue to oecupy the Property as Borrower's principal residence for at
<br />least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br />withheld, or unless extenuating circumstances exist which are beyond Bonower's control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destrpy, damage or
<br />impair the Properiy, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the
<br />Property, Borrower sha11 maintain the Properly in order to prevent the Property from deteriorating or decreasing in value due to iks
<br />condition. Unless it is determined pursuant to Section 5 that repaar or restoration is not economically feasible, Borrower shall
<br />promptly repair the Property if damaged to avoid further deteriora6on or damage. If insurance or condemnation proceeds are paid
<br />in connection with damage to, or the taking of, the Properiy, Bonower shall be responsible for repairing or restoring the Property
<br />only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single
<br />payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient
<br />to repair or restore the Properly, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoxation.
<br />Lender or its agent may make reasonable entries upon and inspections of the Property. Tf it has reasonable cause, Lender may
<br />inspect the interior of the improvemenGs on the Properry. Lender shall give Bonower notice at the time of or prior to such an
<br />interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan AppHcation. Borrower shall be in default if, during the Loan applica6on process, Boirower or any
<br />persons or en6ties acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading,
<br />or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the
<br />Loan. Material representations include, but are not limited to, representations concerning Bonower's occupancy of the Properry as
<br />Borrower's principal residence.
<br />NEBRASKA--Single Family--Fannle Mae/Freddie Mac UNIFORM INSTRUMENT
<br />Deed of Trust-NE
<br />2006--NE (05/08) ��
<br />�
<br />Page 4 of 9
<br />Form 3028 1/01
<br />��
<br />
|