|
201�057�7
<br />7. Preservation, Maintenance and Protectiou of the Property; Inspectians. Borrower shall not destroy, damage or
<br />impair the Property, allow the Proper[y to deteriorate or commit waste on the Property. Whetl�er or not Borrower is residing in
<br />the Property, Borrower shall maintain the Property in order to prevent the Propeny from deteriorating or decreasing in value
<br />due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,
<br />Borrower shall promptly repair the Property if damaged to avoid further deterioration or damagc. If iasurance or
<br />condemnation proceeds are paid in connection with ciwiage to, or the taking of, the Property, Borrower shall be responsible for
<br />repairing or restoring the Progerly only if Lender has released proceeds Por such purposes. 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. If the insurance or
<br />condemnation proceeds are not sufficient to repair or restore the Property, Bonower 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 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 prior
<br />to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Borrower sha11 t3e in default if, during the I.oan application process, Borrower or
<br />any persons or entities acting at the direction of Borrower or with Borrower'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 Bonower's
<br />occupancy of the Property as Bonower's principal residence.
<br />9. Protection af Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails
<br />to perfonn the covenants and agreeuients contained in this Securiry Instrument, (b) there is a legal proceeding that miglrt
<br />s'rgnificantly affect Lender's interest in the Properiy andJor rights under this Securiry 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 regulaiions), or (c) Borrower has abandoned the Property, then Lender may do and pay for
<br />whatever is reasonable or appropriate to protect I,endcr's interest in thc T'roperty and rights under this Sccuriry Instrumcnt,
<br />including protecting ancUor assessing the value of the Property, and securing ancUor repairing the Progerty. 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 Instruuient; (b)
<br />appeariuig in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property andlor rights under Wis
<br />Securiry Instrument, including its secured position in a bankruptcy proceeding. Securing the Properly includes, but is not
<br />limited to, entering the Ptoperty to make repairs, change locks, replace or board up doors and windows, drain water from
<br />pipes, eliminate building or other code violations or dangerous conditions, and have utilities tumed 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 aclions authorized under this Sec;lion 9.
<br />Any amounts disbursed by I,ender under this Section 9 shall become additional debt of Borrower secured by this
<br />Security 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 reqnesting payment.
<br />If this Securiry Instrument is on a leasehold, Borrower shall comply witl� a11 the provisions of the lease. If Borrower
<br />acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to tlie merger in writing.
<br />10. Mortgage Insurance. If L.ender required Morlgage Insurance as a c;ondition of making lhe Loan, Bortower shall
<br />pay the premiums required to maintain the Mortgage Insurance in effect. Il', 1'or any reason, the Mortgage Insurance coverage
<br />required by I.ender ceases to t�e available from the mortgage insurer that previously provided such insurance and Rorrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the
<br />premiwms required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost
<br />substantially equivalent to the cost to Borrowcr of the Mortgage Insurancc previously in cffect, from an altcrnatc mortgagc
<br />insure[� selec:ted by I.ender. If subs[antially equivalent Mortgage Insurance coverage is not available, Borrower shail 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-refunda.ble loss reserve in lieu of Mortgage Insurance. Such
<br />loss reserve sha11 be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender sha11 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 />Mortg�ge Insurance covera.ge (in the amount and for the period that Lender requires) provided by an insurer selected by Lender
<br />again 6ecomes available, is obtained, and Lender requires scparately designated payments towaxd the premiums for Mortgage
<br />Insuraace. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make
<br />separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums requirerl to
<br />maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurauce ends in accordance with any written agreement between Borrower 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 ax the rate
<br />provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity Wal purchases lhe Note) for certain losses it may incur if
<br />Borrower does not repay the I,oan as agreed. Borrower is aot a party to the Mortgage Insurance.
<br />'�MoRgage insurers evaluate their total risk on all such insurance i❑ force from time to time, and may enter cnto
<br />agreements with other parties that share 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 parry (or parties) to these agreements. These agreements may require
<br />the mortgage insurer to make payments using any source of funds that thc mortgage insurer may havc available (which may
<br />include funds obtaineci from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or
<br />aay affiliate of any of the foregoing, may receive (directly or indirectly) amounts thax derive from (or might be characterized
<br />as) a ponion 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 />sharc of thc prcmiums paid to the insurer, thc arrangement is often tcrmed "captive rcinsurancc. " Further:
<br />(a) Any snch agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or
<br />any other terms of the Loan. Such agreetnents will not increase the amount Borrower will owe for Mortgage Insurance,
<br />and tlaey will not entitle Borrower to any refund.
<br />(b) Any such agreements will not affect the rights Borcower has--it' any--with respect to the Mortgage Insurance
<br />under the Homeowners Protecrion Act of 1998 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 />antomatically, and/or to receive a refund af any Mortgage �nsurance premiums that were unearned at the time of such
<br />cancellarion or termination.
<br />� 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall
<br />be paid to I.ender.
<br />� If the Properiy is dawaged, such Miscellaneous Proceeds sha11 be applied to restoration or repair of the Property, if the
<br />restoration or repair is economically feasible and Lender's securiry is not lessened. During such repair and restoration period,
<br />Lender sha11 have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property
<br />to ensure the work has becn completed to Lcnder's satisfaction, provided that such inspection shall bc undertakcn promptly.
<br />Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the worl� is
<br />completed. Ualess an agreement is made in writing or Applicable I.aw requires interest to he paid on such Miscellanec�us
<br />Proceeds, Lender sha11 not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasible or Lender's securiry would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the swms secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Bonower.
<br />Such Miscellaneous Proceeds shall be applied in the order providcd for in Section 2.
<br />In the evenl of a total taking, destruction, or loss in value of the I'roperiy, 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—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT rn � Form 3028 1/01
<br />Bankers Systems, Inc., St. Cloud, MN Form MD-1-NE 8!17/2000 (page 4of 7p4ges) f� �`
<br />
|