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. � 20110664�.
<br />that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
<br />Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall eccount to Borrower for the
<br />excess funds in eccordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA,
<br />Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up
<br />the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is e deficiency of Funds
<br />held in escrow, es defined under RESPA, Lender shall notify Borrower as raquired by RESPA, and Borrower shall pay to
<br />Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly
<br />payments.
<br />Upon peyment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all texes, assessments, charges, fines, and impositions attributable to the
<br />Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if
<br />any, and Community Association Dues, Fees, and Assassments, if any. To the extent that these items are Escrow
<br />Items, Borrower shall pay them in the manner provided in Section 3.
<br />Borrower shall promptly discharge any lien which has priorify over this Security Instrument unless Borrower. (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner accepfable to Lender, but only so long
<br />as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the
<br />lien in, legel proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those
<br />proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an
<br />agraement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part
<br />of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or
<br />take one or more of tha 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 and/or reporting service
<br />used by Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazerds included within the term "extended coverage,° and any other hazerds including, but
<br />not limitad to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuent to the
<br />preceding sentences can change during the term of the Loan. The insuraace carrier providing the insurance shall be
<br />chosen by Barrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised
<br />unreasonably. Lender may require Borrower to pay, in connection with this Loan; either: (a) a one-time charge for flood
<br />zone� determination, certification and tracking services; or (b) a one-time charge for flood zone determinetion and
<br />certification services and subsequent charges each time remappings or similar changes occur which reasonably might
<br />affect such determination or certification: Borrower shall also be responsible fior the payment of any fees imposed by
<br />the Federel Emergency Management Agency in connection with the review of any flood zone determination resulting
<br />from an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lendar's option and Borrower's expense. Lender is under no obligation to purchase any particuler type or amount of
<br />coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in
<br />the Property, or tha contents of the Property, against any risk, hazard or liability and might provide greater ar lesser
<br />coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained
<br />might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender
<br />undar this Section 5 shall become additionel debt of Borrower secured by this Security Instrument. These amounts
<br />shall bear interast at the Note rate from the date of disbursemant and shall be payable, with such interest, upon notice
<br />from Lender to Borrower requesting payment. °
<br />All insurance policies requirad by Lender and renewals of such policies shal! be subject to Lender's right to
<br />disapprove such policies, shall include a standard mortgege clause, and shall name Lender as mortgagee and/or as an
<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires,
<br />Borrower shall promptly give to Lender all receipts af paid premiums and renewal notices. If Borrower obtains any form
<br />of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy
<br />shall include a stendard mortgege clause and shell name Lender 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
<br />proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, eny insurance
<br />proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of
<br />the Property, if the restoretion or repair is economically feasible and Lender's security is, not lessened. During such
<br />repair and restoration period, Lender shall have the right to hold such insurence proceeds until Lender has had an
<br />opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that
<br />such inspection shall be undertaken promptly. 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. Unless an agreement is made in writing or
<br />Applicable Law requires interest to be paid on such insurance .procaeds, Lender shall not be required to pey Borrower
<br />any interest or earnings on such proceeds, fees for public adjusters, or other thi�d parties, retained by Borrower shall
<br />not be paid out of the insurance proceeds and shall be tha sole obligation of Borrower: If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br />secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such
<br />insurence proceeds shall be applied in the order provided for in Section 2
<br />If Barrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to
<br />settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given.
<br />In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a)
<br />Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this
<br />Security Instrument, and (bl any other of Borrow�r's rights (other than the right to any refund of unearned premiums
<br />paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the
<br />coverage of the Propeny. l.ender may use the insurence proceeds either to repair or restore the Property or to pay
<br />amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occupancq: BorFOwrer shall occupy establish, and use tt�e Propecty as Borrower's principal residenCe within 60
<br />days after the executlon of this Security Instrument end shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender otherwise agraes in writing, which consent
<br />shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />7. Preservatian, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or
<br />impair the Property, allow the Praperty to deteriorate or commit waste on the Property. Whether or not Borrower is
<br />residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or
<br />decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not
<br />economically feasible, Borrower shall promptly repair the Property if damage8 to avoid further deterioration or damage.
<br />If insurance or condemnation proceeds are paid in connection with damage to, or the teking of, the Property, Borrower
<br />shall be responsible for rapairing or restoring the Property only if Lender has released proceeds for such purposes.
<br />Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as
<br />the work is completed. if the insurance or condemnation proceeds ere not sufficient to repair or restore the Property,
<br />NEBRASKA-Single Family-Fennie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
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