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�01202422
<br />1111062991
<br />and any mortgage insurance premium installment that Lender has nat become obligated to p�y to the
<br />Secretary, and Lender shall promptly refund any excass funds to Borrower, Immediately prior to a
<br />foreclosure sale of the Property or its acquisition by Lender, Borrowar's account shall be credited with any
<br />balance �remaining for all installments for items (a), (b), and (c).
<br />3. Application of Paymenta. All payments undar paregraphs 1 and 2 shall be applied by Lender as
<br />follows:
<br />First, to the mortgaga insuranca premium to ba paid by Lendar to tha Secretary ar to the monthly
<br />charga by tha Secretary instead o£ the monthly mortgage insurance premium;
<br />Second, to any taxes, special asaessments, leasehold payments or ground rents, and fire, flood and
<br />other hazard insurance premiums, as reguired;
<br />Third, to interest dua under tha Note;
<br />Fourth. to amortizaEion of the principal of the Note;
<br />Fifth, to late charges due under the Note,
<br />4. Fire, Flood and Other FIazard Insurance. Borrower shall insure all improvements on the
<br />Property, whether now in existence or subsequently erectad, against any hazards, casualties, and
<br />contingencies, including fire, for which Lender requires insuranca, This insuranoa shall ba maintained in the
<br />amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the
<br />Property, whether now in existence or subsequently erected, against loss by floods to the extent required by
<br />the Secretary, All insurance shall be canied with companies approved by Lander. The insurance policies and
<br />any renewals shall be held by Lender and shall includa loss payabla clauses in fa�or of, and in a f�rm
<br />acceptable to Lander,
<br />In the event of loss, Borrower shall give Lendar immediata notice by mail. Lender may make proof
<br />of loss if not made promptly by Borrower. Each insurance company concerned is hareby authorized and
<br />directed to make paymant for such loss directly to Lender, instead of to Borrower and to Lender jointly. All
<br />or any part of tha insurance proceads may be applied by Lender, at its option, eithar (a) to the reduction of the
<br />indebtedness undar the Note and this Security Instrument, first to any delinquent amounts applied in the order
<br />in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged
<br />Property. Any application of the proceeds to the pri�cipal shall not extend or postpone the due date of the
<br />monthly payments which ara referred to in paragraph 2, or change the amount of such payments. Any excess
<br />insurance proceeds ovar an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Instrument shall ba paid to the entity lagally entitled thcrato,
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that
<br />axtinguishes the indebtedness, all right, title and interest of Borrower in and to insuranca policies in force
<br />shall pass to the purchaser.
<br />5. Occupancy, Preservatfon, Maintenance aad Protection of the property Borrower's Loan
<br />Application; Leaseholda. Borrower shall occupy, establish, and use the Property as Bonowar's principal
<br />residence within sixty days after the execution of this Security Instrument and shall continue to occupy the
<br />Property as Borrower's principal residence for at least one year after the date of occupancy, unlass the
<br />Secretary determines this requirement will cause undue hardship for Borrower, or unless extanuating
<br />circumstances exist which are beyond Borrower's control, Borrower shall nolify Lenders of any extanuating
<br />circumstances. Borrow shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable wear and tear axcepted. Lender may inspect the Property if the
<br />Property is vacant or abandoned or the loan is in default, Lender may take reasonable action to protect and
<br />preserve such vacant or abandoned Property, Borrowar shall also ba in default if Borrower, during the loan
<br />application process, gave materially false or inaccurate information or statements to I.ander (or failed to
<br />provide Lender with any material information) in connection with tha loan evidenced by the Note, including,
<br />but not limited to, representations concerning Borrower's occupancy of tha Property as a principal rasidence,
<br />FHA Nebraska Deed of Trast - 06/li
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