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<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, da.mage or
<br />impair the Property, allow the Properiy to deteriorate or commit waste on the Property. Whether or not Borrower �s residing in
<br />the Property, Bonower shall maintain the Property in order to prevent the Progerty from deteriorating or decreasing in value
<br />due to its condition. Unless it is determined pursuant to Section S thaL repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Properly if damaged to . avoid further deterior�tion 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 />repairing or restoring the Property only if Lender has released proceeds� for such purposes. Lender may disburse �roceeds for
<br />the repairs and restoration in a smgle payment or in a series of progress payments as the work is completed. If the insurance or
<br />condemnation �roceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation
<br />for the complerion 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�r ins�ct the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior
<br />to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Bonower shall be in default if, during the Loan application process, Borrower or
<br />any persons or entities acting at the direction of Borrower or with Bonower's knowledge or consent gave materially 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 Borrower's
<br />occupancy of the Property as Borrower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Riphts Under this Security Instrument. If (a) Borrower fails
<br />to perform the covenants and agreements contained in this Secunry Instrument, (b) Were �s a legal proceeding that might
<br />significanfly affect Lender's interest in the Pro�erty andlor rights under thi� Securiry Instnament (such as a proceeding in
<br />bankruptcy, probate, for condemnation or fotferture, for enforcement of a lien which may attain prioriry over this 5ecurity
<br />Instrument or to enforce laws or regulations), or (c) Bonower 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 nghts under this Security Instrument,
<br />including protecting and/or assessing the value of the Properiy, and securing and/or repairing the Property. Lender's actions
<br />can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b)
<br />appearing in court; and (c) paying reasonable attomeys' fees to protect its interest in the Property and/or rights under this
<br />Security Instrwnent, including its secured position in a bankruptcy proceeding. Securing the Pro�erty includes, but is not
<br />limited to, entering the Pro�rty to make repairs, change locks, replace or boazd up doors and windows, drain water from
<br />pipes, eliminate building or other code violations or dangerous conditions, and ha.ve 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 authorized under this Section 9.
<br />Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this
<br />Securiry Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
<br />such interest, upon notice from Lender to Borrower requesting payment.
<br />If this Security Instrument is on a leasehold, Borrower sha11 comply with a11 the provisions of the lease, If Borrower
<br />acquires fee title to the Properly, the leasehold and the fee tifle sha11 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 shall
<br />pay the premaums required to maintain ihe 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 Borrower 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 />substa.ntially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage
<br />insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall 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 reserue in lieu of Mortgage Insurance. Such
<br />ioss reserve shall be non-refuuda:ble, notwithstanc�ing. the fact that the Loan is ultimately paid iu fuLl, and Lender shall not be
<br />required to pay Bonower any interest or earnings on such loss reserve. 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, and Lender requires separately designated payments toward the premiums for Mortgage
<br />iasurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to malze
<br />separately designated payments toward the premiums for Mortgage Insurance, Bonower shall pay the premiums required to
<br />maintain MoRgage Insura.nce in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends in accordance with any writ�en agreement between Borrower and Lender providing for such termination or until
<br />termination is required by Applicable Law. Nothing in this Section 10 affects Bonower's obligation to pay interest at the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certa.in losses it may incur if
<br />Borrower dces not repay the Loan as agreed. Bonower is not a party to the Mortgage Insurance.
<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 share or modify their risk, or reduce losses. These agreements are on terms and conditions
<br />thax are satisfactory to the mortgage insurer and the 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 We Note, another insurer, any reinsurer, any other entity, or
<br />any afFdiaxe of any of the foregoing, may receive (direcdy or indirecfly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's payments for Mortgage Insura.nce, 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 premiums paid to the insurer, the arrangement is often term� "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. 5uch agreements will not increase the amount Borrower will owe for Mortgage Insurance,
<br />and the will not entitle Borrower to any refund.
<br />�b) Any such agreements will not affect the rights Borrower has--Yf any--wlth r�pect to the Mortgage Insurance
<br />under the Homeowners Protection Act of 1998 or any other law. These rlghts may include the right to receive certain
<br />disclasur�, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
<br />automaticaIly, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such
<br />cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and sha11
<br />be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration 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 shall have the right to hold such Miscellaneous Proceerls until Lender has had an opportunity to inspect such Property
<br />to ensure the work has been completed to Lender's satisfactiou, provided that such ins�ction sha11 be underta.ken 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 La.w requires interest to be paid on such Miscellaneous
<br />Proceeds, Lender shall not be rec�uired to pay Bonower any interest or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the Miscella.neous Proceeds shall be
<br />applied to the sums secured by Wis Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds shall be applied in the order provided for in 5ection 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds sha11 be applied
<br />to the sums secured by this Securiry Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
<br />Benkere Systems, Inc., St. Claid, MN Form MD-7-NE B(17/2000 (page 4 of 7 poages) �
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