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<br /> 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Properly insured against loss by fire, hazards included within the term"e�ctended coverage," and any other hazards
<br /> including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be
<br /> maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender
<br /> requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing
<br /> the insurance sha11 be chosen by Borrower subject to Lender's right to disapprove Borrower's choice,which right shall
<br /> not be exercised unreasonably. Lender may require Borrower to pay,in connection with this Loan, either: (a)a one-
<br /> time charge for flood zone determination, certification and tracking services;ar(b)a one-time charge for flood zone
<br /> determination and certification services and subsequent charges each time remappings or similar changes occur which
<br /> reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of
<br /> any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone
<br /> determination resulting from an objection by Borrower.
<br /> If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br /> Lender's oprion and Bonower's expense. Lender is under no obligation to purchase any particular type or amount
<br /> of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's
<br /> equity in the Property, or the contents of the Property, against any risk,hazard or liability and might provide greater
<br /> or lesser coverage than was previously in effect. Borrower aclrnowledges that the cost of the insurance coverage so
<br /> obtained tnight significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed
<br /> by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These
<br /> amounts shall bear interest at the Note rate from the date of disbursement and sha11 be payable, with such interest,
<br /> 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
<br /> disapprove such policies, shall include a standard mortgage clause,and shall name Lender as mortgagee and/ar as an
<br /> additional loss payee. Lender shall have the right to hold the policies and renewal cerrificates. If Lender requires,
<br /> Borrower shall promptly give to Lender all receipts of paid premiuins and renewal notices. If Borrower obtains any
<br /> form of insurance coverage,not otherwise required by Lender, for damage to, or destruction of, the Property, such
<br /> policy shall include a staudard mortgage clause and shall name Lender as mortgagee and/or as an additionai loss
<br /> 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 F3orrower. �Uniess Lender and Borrower otherwise agree in writing, any
<br /> insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
<br /> or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
<br /> During such repair and restorarion period, Lender shall have the right to hold such insurance proceeds until Lender
<br /> has had an opportunity to inspect such Properry to ensure the work has been completed to Lender's satisfaction,
<br /> provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and
<br /> restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement
<br /> is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be
<br /> required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties,
<br /> retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower.
<br /> If the restoration or repair is not economically feasible or Lender's security would be lessened,the insurance proceeds
<br /> shali be applied to the sums secured by this Security Instrument,whether or not then due,with the excess,if any,paid
<br /> to Borrower. Such insurance proceeds shall be applied in the order provided for in Secrion 2.
<br /> If$orrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and
<br /> related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has
<br /> offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the
<br /> notice is given. In either event, or if Lender acquires the Property under Section 21 or otherwise, Borrower hereby
<br /> assigns to Lender(a)Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid
<br /> under the Note or this Security Instrument, and(b)any other of Borrower's rights(ather than the right to any refund
<br /> of unearned premiums paid by Borrower)under all insurance policies covering the Property, insofar as such rights
<br /> NEBRASKA-5ingie Family-UNIFORM INSTRUMENT ��y� ��
<br /> MODIFIm FOR DEPARTMENT OF VEi'ERANS AFFAIRS-MERS wwav�d�agit.com
<br /> (Rev. 1/01) Page 6 of 14
<br /> �I'I)I(II I II II I I I II"I(I II I I�I I II II I I I I I')I I I(I I)I')II(III
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