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201109122
<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires,
<br />Borrower sha11 promptly give to Lender all receipts of paid premiums and renewal notices. If Bonower obtains any
<br />form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such
<br />policy sha11 include a standazd mortgage clause and shall name Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event of loss, Bonower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br />proof of loss if not made promptly by Borrower. Unless L.ender and Borrower otherwise agree in writing, any
<br />insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applie� to restoration
<br />or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessenerl.
<br />During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender
<br />l�as had an opportunity to inspect such Property 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 Bonower 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 sha11 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 proc.eeds
<br />shall be applied to the sums s�ured by this Security Instrument, whether or not then due, with the excess, if any, paid
<br />to Bonower. Such 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
<br />related matters. If Bonower 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 22 or otherwise, Bonower hereby
<br />assigns to Lender (a) Bonower's rights to any insurance proceeds in an amount not to excced the amounts unpaid
<br />under the Note or this 5ecurity Instrument, and (b) any other of Borrower's rights (other than the right to any refund
<br />of unearned premiums paid by Bonower) under all insurance policies covering the Property, insofar as such rights
<br />are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the
<br />Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Occupancy. Bonower shall occupy, establish, and use the Properly as Borrower's principal residence
<br />within 60 days after the ex�ution of this Se,curity Instrument and shall continue to occupy the Property as Bonower's
<br />principal residence for at least one year after the date of occupancy, unless Lender otherwise agre,es in writing, which
<br />consent shall not be unreasonably withheld, or unless extenuating circumstances exist which aze beyond Bonower's
<br />control.
<br />7. Preservation, Maintenance and Protection of the Property; Inspections. Bonower shall not destroy,
<br />damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not
<br />Bonower is residing in the Property, Bonower shall maintain the Property in order to prevent the Properiy from
<br />deteriorating or decreasing in value due to its condition. Unless it is deternuned pursuant to Section 5 that repair or
<br />restoration is not economically feasible, Borrower sha11 promptly repair the Property if damaged to avoid further
<br />deterioration or damage. If insurance or condemnation proceeds are paid in conne.ction with damage to, or the taking
<br />of, the Properly, Bonower shall be responsible for repairing or restoring the Property only if Lender has released
<br />proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in
<br />a series of progress payments as the work is completed. If the insurance or condemnation proceeds aze not sufficient
<br />to repair or restore the Property, Bonower is not relieved of Borrower's obligation for the completion of such repair
<br />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 Properly. Lender sha11 give Borrower notice at the time
<br />of or prior to such an interior inspection specifying such reasonable cause.
<br />8. Borrower's Loan Application. Bonower sha11 be in default if, during the Loan application process,
<br />Bonower or any persons or entities acting at the dire.ction of Bonower or with Bonower's lrnowledge or consent gave
<br />materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with
<br />material information) in connection with the I.oan. Material representations include, but are not limited to,
<br />representations concerning Borrower's occupancy of the Properiy as Bonower's principal residence.
<br />9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
<br />Bortower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal
<br />proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument
<br />(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may
<br />attain priority over this S�urity Instrument or to enforce laws or regulations), or (c) Bonower has abandoned the
<br />Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the
<br />Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property,
<br />and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums
<br />secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
<br />attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured
<br />position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to
<br />make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or
<br />other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action
<br />under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that
<br />Lender incurs no liability for not taki�g any or a11 actions authorized under this Section 9.
<br />NEBRASKA--Single Family--Fannie MaelFreddi c UNIFORM INSTRUMENT - MERS DocMag/c�
<br />Form 3028 1/01 Page 5 of 11 www.dormagic.com
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<br />Ne3028.mzd.�l
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