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�0120�O�G
<br />In the event of foreclosure of �is Security Instr�ent or oth� transfer of ritle to the Property that extinguiahes the
<br />mdebtedness, all right, title �d 'mterest of Bonower in and to insivance policies in force shall � ro the purchas�.
<br />5. Occupancy, Preservalion, Maintenance aad ProtecNon of the Praperty; Borrower's Loan AppllcaHon;
<br />Leaseholds. Boaower shall occupy, establish, and use the Property as Borrower' s principal residence within sixty
<br />days after the execution of this Security Inshvment (or within sixty days of a later sale or transfer of the Property)
<br />and shall continue to occupy the Properiy as Borrower's principal residence for at least one year after the date of
<br />occupancy, ualess Lender determines that requirement will cause undue hardship for Bonower, or unless extenuating
<br />circumstances exist wlrich are beyond Borrower's control. Borrawer shall notify Lender of any extenuating
<br />circum.4tances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow
<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 in defaulk Lender may take reasonable action to protect and preserve such vacant
<br />or abandoned Property. Bonower shall also be in defa�ilt if Bonower, during the loan application process, gave
<br />materially false or iaaccurate information or statements to Lender (or failed to provide Lender with any material
<br />infotmation) in coffiection with the loan evidenced by the Note, including, but not limited to, representations
<br />concerning Bonower's occupancy of the Property as a principal residence. If this Security Iastrument is on a
<br />leasehold, Borrower shall comply with the provisions of the lease. ff Borrower acquires fee title to the Property, the
<br />leasehold and fee title shall not be merged uoless Lender agrees to the merger in writing.
<br />6. Condemoaflon. The proceeds of any award or claim for damages, direct or consequential, in conn�tion
<br />with any condemnation or other taldng of any part of the Properiy, or for conveyance in place of condemnation, aze
<br />hereby aasig►ed and shall be paid to Lender to the extent of the full amount of the indebtedness tbat remains unpaid
<br />under the Note and Uris Sec�aity Instrument. Lender shall apply such proceeds to the reduction of the indebte,dness
<br />under the Note and t6is Security Instrument, Srst to any delinquent amounls applied in the order provided in
<br />paragraph 3, and then to prepayment of principal. Any application of the procezds to the principal shall not extend
<br />or poslpone the due date of the monthly payments, which are referred to in paragraph 2, or change the amount of such
<br />payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Instrument shall be paid to the entity legally entitled therew.
<br />7. Chargea to Borrower and ProtecHon of Lender's Rights �tn the Property. Bonower shall pay all
<br />govemmental or municipal charges, fines and impositions that are not included in paragtaph 2. Borrowet shall pay
<br />these obligations on time directly to the entity which is owed the paymenk If failure to pay would adversely affect
<br />Lender's interest in the Property, upon Lender's request Bonower shall promptly fiimish to Lender receipts
<br />evidencing these payments.
<br />ff Borrower faiLc to make th�e payments or the payment� required by pazagraph 2, or fails to perform any other
<br />covenaats and agreements contained in this Security Inshument, or there is a legal proceeding that may significandy
<br />affect Lender' s rights in the Properiy (such as a proceeding in baolffuptcy, for condemnation or to enforce lawa or
<br />regulations), then Leader may do and pay whatever is necessacy to protect the value of the Property and Lender's
<br />rights in the Properiy, including payment of taxes, ha�ard insurance and other items menfioned in paragraph 2.
<br />Any amoimt� disbursed by Lender under Uvs paragraph sl�all become an additional debt of Borrower and be
<br />sec�ued by this Security Instrument. These amounts shall bear interest from the date of disbursement at the Note rate,
<br />and at the option of Lender shall be imme.diately due and payable.
<br />Bonower shall promptly discharge any lien which has priority over tivs Security Inshvment unless Boarower:
<br />(a) agrees in writing to the payment of the obligation secwed by the lien in a manner acceptable to Lender; (b) cont�ts
<br />in good faith the lien by, or defends Ag�� enforcement of the lien in, legal proceedings wluch in the Lender's
<br />opinion operate to prevent the enforcement of the lien; or (c) aectues from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the
<br />Properiy is subject to a lien wlrich may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice idenrifying the liea Borrower shall satisfy the lien or take one or more of the actions aet forth above within
<br />10 days of the giving of notice.
<br />& Fees. Lender may collect fees and charges authorized 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 secured by tUis Secisity Inshvment if:
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security
<br />Instrument prior to or on the due date of the next monthly payment, or
<br />(ri) Borrowet defaults by failing, far a period of Uurty days, to perform any other obligations
<br />contained in this Security Instrament
<br />(b) Sale Witho� Credit Approval. Lender shall, if permitted by applicable law (including section 341(c�
<br />of the Garn-St� Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3(�) and with the prior
<br />approval of the Secr�y, require immadiate payment in full of all sums secured by this Secauity Ins�n�ment iF
<br />(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is
<br />sold or othervvise transferred (other than by devise or descent), and
<br />(ii) The Property is not occupied by the purcheser or grantee as his or her principal residence, or the
<br />piucbaser or grantee dces so occupy the Properiy, but his or her ciedit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit L.ender to reqirire immediate payment in full,
<br />but I.end�r does not rec�rire such payments, I.ender does not waive its right� with respect to subsequent events.
<br />(d) Regalatlons of HUD S�retary. In many circumstances regulations issued by the Secretary will limit
<br />Lender's rights, in the case of paymet►t defaults, to require immediate payment in fiill and foreclose if not
<br />FHA NEBRASKA D� OF TRUST - MER.S p�e� �
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