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20��015b1
<br />In the event of foreclosute of this Secutity Instrument or other hansfer of 6Ue to the Ptoperhy tl�at exUngtrishcs the
<br />indebtadness, all right, title and interest of Bonower in and to ins�uance policies in force shall � to the piaahaset.
<br />5. Occupancy, Preservadon, Maintenance and Protecdon of the Property; Borrower's Loan Appllcatton;
<br />Leaseholda. Bonower shall occupy, establish, and use the Property as Borrower' s principal residence within sixty
<br />days after the execution af this Security Instrument (or within sixty days of a later sale or iransfer of the Property)
<br />and shall continue to occupy the Property as Bonower's principal tesidence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Bonower, or unless extenuating
<br />circumstances exist wlrich are beyond Bonower' s control. Borrower shall notify Lender of any extenuating
<br />circumstances. Bonower shall not commit waste or desiroy, damage or substantially change the Properiy or a11ow
<br />the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is
<br />vacant or abandoned or the loan is ia default Lender may take reasonable action to protect and preserve such vacant
<br />or abandoned Properry. Bonower shall also be in default if Borrower, during the loan applicetion process, gave
<br />materially false or inaccurate information or statemenfs to Lender (or failed to provide Lender with any material
<br />information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br />concerning Borrower' s occupancy of the Property as a principal residence. If this Security Instrument is on a
<br />leasehold, Bonower shall comply with the provisions of the lease. If Bonower acquirea fee title to the Property, the
<br />leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnalalon The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are
<br />hereby assigned and shall be paid W Lender to the extent of the fiill amount of the indebtedness that remains unpaid
<br />under the Note and this Secutity Instrumenk Lender shall apply such proceeds to the reduction of the indebtedness
<br />under the Note and Uris Security Instrument, first to any delinquent amounts applied in the order provided in
<br />paragraph 3, and then to prepayment of principal. t�ny application of the proceeds to the principal shall not extend
<br />or pastpone the due date of the monthly paymenis, wluch are referred to in paragraph 2, or change the amoimt of such
<br />payments. Any excess proceeds over an amount reqirired to pay all outstanding indebtednes,s under the Note and this
<br />Security Instrument shall be paid to the entity legally entiUed thereto.
<br />7. Chargcc to Borrower and ProtecUton of Lender's Rights in the Property. Borrower shall pay all
<br />governmeatal or municipal charges, Snes and impositions that are not included in paragraph 2. Bonower shall pay
<br />these obligations on time directly to the entity which is owe3 the payment If failure to pay would adversely affecc
<br />Lender's interest in the Property, upon Lender's request Bonower shall promptly furnish to Lender receipt�
<br />evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perform any other
<br />covenants and agreement� contained in this Secnrity Instr�ment, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Ptoperty (such as a proceeding in baalQUptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's
<br />rights in the Property, including payment of taxes, ha�ard insurance and other items menfioned in paragraph 2.
<br />tlny amounts disbwsed by Lender under this paragraph shall become an additional debt of Borrower and be
<br />secuced by this Security Instrument. These amounffi shall bear interest from the date of disbursement at the Note rate,
<br />and at the option of Lender shall be immediately due and payable.
<br />Bonower shall promptly discharge any lien which has priority over this Security Insh�ument unless Borrower:
<br />(a) agrces in writing to the payment of the obligation se,ciued by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings wirich in the Lender's
<br />opinion operate to prevent the enforcement of the lien; or (c) sec�es from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instnunent. ff Lender determines that any part of the
<br />Property is subject to a lien wlrich may attain priority wer this Security Instrument, Lender may give Bonower a
<br />notice identifying the lien. Bonower shall satisfy the lien or take one or more of the actions set forth a}mve wiUrin
<br />10 days of the giving of notice.
<br />& Feea. Lender may collect fees and charges suthorized by the Secretary.
<br />9. Gronnds for Acceleration of Debt
<br />(a) Defanit Lender may, except as limited by regulations issued by the Secretary in the case of payment
<br />defaults, require immediate payment in full of all sums sec�ued by this Security Instn�ent if:
<br />(i) Borrower defaults by failing to pay in full any montlily payment required by Uus Security
<br />Insh�ument prior to or on the due date of the next monthly payment, or
<br />(ri) Borrower defaults by failing, for a period of thirty days, to perform any other obligarions
<br />contained in this Security Inshvmenk
<br />(b) Sale Witho� Credit Approval. Lender shall, if permitted by applicable law (including section 341(�
<br />of the Garn-St Germain Depository Instihrtions Act of 1982, 12 U.S.C. 1701j-3(�) and with the prior
<br />approval of the Secae�y, re�rira �ediate payment in fiill of all sums sec�aed by this Secvrity Ins�t iE
<br />(i) All or part of the Property, or a beneficial intetest in a trust owning all or part of the Property, is
<br />sold or otherwise transferred (other than by devise or descent), and
<br />(ri) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the
<br />purchaser or gtantee dces so occupy the Property, but his or her credit has not been approved in
<br />accordance with the reqirirements af the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in fu11,
<br />but I.ender d�s not require suc3� payments, I,�der does �t waive its righis with respact to �Sequ�t eveafs.
<br />(� Regalations of HUD Secretary. In many circumstanc� regulations iasued by the Secretary will limit
<br />Lender' s rights, in the case of payment defaults, to require immediate payment in full and foreclose if not
<br />FHA N�RASKA D� OF TRUST - MQtS Dar�legfc �
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