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20120663�
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time
<br />are not suff'icient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br />up the shortage as permitted by RESPA.
<br />The Fscrow Funds are pledged as additional security for all sums secured by this Security Instrument. If
<br />Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall prompdy refund any excess funds to Borrower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a) ,(b) , and (c) .
<br />3. Applical3on of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIRD, to interest due under the Note; -
<br />FOURTH, to amortization of the principal of the Note; and
<br />FIFT'H, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequendy erected, against any hazards, casualties, and contingencies, including fire,
<br />for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. Borrower shall also insure all improvements on the Property, whether now in existence or
<br />subsequendy erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with
<br />companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made prompdy by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss direcfly to Lender, instead of to Borrower and to Lender joinfly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally entifled thereto.
<br />In the event of foreclosure of this Security Instrument or other t�ansfer of tide to the Property that extinguishes the
<br />indebtedness, all right, tide and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservatton, Maintenance and ProtecHon of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property)
<br />and shall continue to occupy the Property as Borrower's principal residence 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 which are beyond Borrower's control. Borrower shall notify Lender of any extenuating
<br />circumstances. 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 default. Lender may take reasonable action to protect and preserve such vacant
<br />or abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave
<br />materially false or inaccurate information or statements 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 />FHA NEBRASKA D� OF TRUST - MERS por�yBg/e �
<br />NmOTZ.FHA 03/21/12 Page 3 of 9 www.docmaglc.com
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