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<br />required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however,
<br />that interest shall be paid on the Funds. Lender shall give ta 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 account to Borrower for the
<br />excess funds in accordance 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 a deficiency of Funds
<br />held in ascrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pey to
<br />Lender the amount necessary to make up the deficiency in accordence with RESPA, but in no more than 12 monthly
<br />payments.
<br />Upon payment 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 taxes, 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 Assessments, if any. To the extent that these items are Escrow
<br />Items, Borrower shall pay them in the manner provided in Saction 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />egrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long
<br />as Borrower is performing such agreement; Ib) contests the lien in good fatth by, or defends egainst enforcement of the
<br />lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those
<br />proceedings ere pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an
<br />agreement 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 dete on which that notice is given, Borrower shall satisfy the lien or
<br />take one or more of the actions set forth ebove in this Section 4.
<br />Lender may requlre Borrower to pay a one-time charge for a real estate tax verification end/or reporting service
<br />used by Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shail keep the improvements now existing or hereafter erectad on the Property
<br />insured against loss by firq, hazards included within the term "extended coverage," end any other hazards including, but
<br />not limited to, earthquakes and floods, tor which Lender requires insurance. This insucan�e shail be maintained in the
<br />amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the
<br />preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be
<br />chpsem,,by Borrower subject to Lender's right to disappcove.. Bprrower's choice, which right shall not be . exercised
<br />unreasonebly. Lender may requjre Borrower to p,ay,"in connection with this Loen, either. (a) a one-time charge for flood
<br />z.one determination, .certification and tracking services; or a one-time. charge for flood zone determination and
<br />certification services and subsequent, charges each t(me remappings or similar. changes occur which reasonably might
<br />affect such determination or.-certification., Borrower shall also be responsible for the payment of any fees imposed by
<br />the Federal Emergency Management,Agency in connection wkh the review of any flood zone determination resulting
<br />from an objection by Borrower.
<br />If Borrower tails, to maintain any of the, covereges described above, Lender ,may obtain .insurance coverage, at
<br />Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or emount of
<br />coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in
<br />the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser
<br />coverage than wes 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 />under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts
<br />shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice
<br />f1'pmAI�I��nsuranB,o,r-�gwar,cegµesting payenent. .. , ., .,.,. ; : . . _., ,. __.. , . .
<br />e policies required by Lender �and renewals of such policies shall be sub'ect�to Lender's right ta
<br />disapprove such policies, shall include a standard mortgage clause, and shell 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 of 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 standerd mortgage clause and shall 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 Lander. Lender may make
<br />proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance
<br />proceeds, whether or not the underlying insurance was requfred by Lender, shall be applied to restoration or repair of
<br />the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such
<br />repair and restoration period, Lender shalL hava the right to hold such insurance proceeds until Lender has had an
<br />opportunity to inspect such Property to ensure the work. has been completed to LendePs 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. es the work is completed. Unless an agreement is made in ,writing or
<br />Appliceble Law requires interest to be paid. on such insurance proceeds, Lender shall not be required to pay Borrower
<br />any interest ar earnings on such proceeds., Fees for public adjusters, or other third parties, retained by Borrower shell
<br />not be paid out of the insurance proceeds and shall be the 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. 8uch
<br />insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower 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 negotiete end settle the claim. The 30-day period will begin when the notice is given.
<br />In either event, or if Lender acquires the Properry 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 (b) any other of Borrower's rlghts (other than the right to any refund of unearned premiums
<br />paid by Borrower) under all insurance poiicies covering the Property, insofar as such rights are applicable to the
<br />coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay
<br />amounts unpaid und,er the Note or this Security tnstrument, whether or not then due.
<br />�� �. Occupancy. Borrower shall occupy, estabiish, and use the Property es Borrower's principal residence within.60
<br />days after the execution of this Security Instrument and shall contfnue to occupy the Property as Borrower's principal
<br />residence for at least one year efter the dete of occupancy, unless Lender otherwise egrees in writing, which consent
<br />shall not be unreasonably withheld, or unless extanuating circumetances exfst which are bayond Borrower's control.
<br />7. Preservation, Maintenance and Protectlon of the Property; Inspections. Borrower shall not destroy, damage or
<br />impair the Property, allow the Property to deteriorete or commit waste on the Property. Whether or not Borrower is
<br />residing in the Property, Borrower shall mefntain 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 repeir the Property if damaged to avoid further deterioration or damage.
<br />If insurence or condemnation proceeds ere peid in connection with damage to, or the taking of, the Property, Borrower
<br />shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes.
<br />Lender may disburse praceeds for the repairs and restoration in a single payment or in a series of progress payments as
<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
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