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201204115
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<br />Secretary, and Lender shaU promptly refund any excess funds to Borrower. Immediately prior to a
<br />foreclosure sale of the Proparty or its acquisition by Lender, Borrower's account shall be credited with any
<br />balance remaining for all installmants for items (a), (b), and (c).
<br />3� Application of Payments. All payments undar paragraphs 1 and 2 shall be applied by Lender as
<br />follows:
<br />ir , to the mortgage insuranca premium to be paid by Lender to the Secretary or to ths monthly
<br />charge by the Sacretary instead of the monthly mortgage insuranca premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and
<br />ather hazard insurance premiums, as required;
<br />Third to intarest dua under the Note; •
<br />Fourth, to amortization of the principal of the Note;
<br />Fifth, to late charges due under the Note.
<br />4. Ffre, Flood and Other Hazard Insurance. Borrower shall insure all improvemants on the
<br />Property, whetber now in existence or subsequently erected, against any hazards, casualties, and
<br />cantingencies, including fire, for which Lender requires insurance. This insuranoe shaU be maintained in the
<br />amounts and for the pariods that Lender requires, Borrower shall also insure all improvements on the
<br />Property, whether now in existence or subseyuently erected, against loss by floods to the extent raquired by
<br />the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and
<br />any ranewals shall be held by T.ender and shall include loss payable clauses in favor of, and in a form
<br />acceptable to Lender. ,
<br />In the event of loss, Borrower shall give Lander immediate notice by mail. Lender may make proof
<br />of loss if not made promptly by Borrower, Each insurance company concerned is hereby authorizsd and
<br />d'uected to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All
<br />or any part of Wa insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the
<br />indebtednass under tha Note and this Security Instrument, first to any delinquent amounts applied in the order
<br />in paragraph 3, and then to prepaymant of principal, or (b) to the restoration or repair of the damaged
<br />Property. Any application of the proceeds to the principal shall not extend or postpone the due data of the
<br />manthly paymants which ara referred to in paragraph 2, or changa the amount of such payments, Any excess
<br />insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Sacurity Instrument ahall be paid to the entity legally entitled thereto.
<br />In tha event of foreclosure af this Security Instrumant or other lransfer of title to the Property that
<br />extinguishas the indobtedness, all right, title and intarest of Borrower in and to insurance policias in force
<br />shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the property Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residance 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, unless tha
<br />Secretary determines this requirement wip cause undue hardship for Barrower, or unless extenuating
<br />circumstances exist which are beyond Barrower's control. Borrower shall notify Lenders of any axtenuating
<br />circumstances. Borrow shall not commit waste or destroy, damage or substantially change the Property or
<br />allaw the Property to deteriorate, ressonabla wear and tear axcepted. Lend6r 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. Borrower shall also be in default if Borrower, during the loan
<br />application process, gave materially false or inaccurate information or statements to Lender (or failed to
<br />provide Lender with any material information) in connection with the loan evidenced by tha Note, including,
<br />but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence.
<br />If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of tha lease. •If
<br />FHA Nebraska Deed of Trust - 06/11
<br />� 391.11 Page 3 of 8
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