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24�206�79
<br />from time to time ("RESPA" ), except that the cushion or reserve permitted by RESPA for unanticipated disbursements
<br />or disbursements before the Bonower' s payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Bonower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time
<br />are not suff�cient 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 Escrow Funds ate 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, Bonower'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 paq to the 5ecretary, and Lender shall promptly refund any excess funds to Bonower.
<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. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIItST, 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 rec�uired;
<br />T'HIItD. to interest due under the Note;
<br />FOURTH, to amortization of the principal of the Note; and
<br />FIFTH, to late charges due under the Note.
<br />4. Fire, Flood and Other Aazard Iasurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently arected, 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 />subsequently 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, Bonower shall give Lender immediate norice by mail. Lender may make proof of Ioss if not
<br />made promptly bq Bonower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to Lender, instead of to Bonower and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reducrion of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in pazagraph 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 pazagraph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amouut required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguish� the
<br />indebtedness, all right, title and inte�rest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Bonower shall occupy, establish, and use the Property as Bonower' s principal residence within sixty
<br />days after the execution of ttus Security Instrument (or within sixty days of a later sale or transfer of the Properiy)
<br />and shall continue to occupy the Property as Borrower's principal residence for at least one yeaz after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardstup for Borrower, or unless extenuating
<br />circumstances e�st which are beyond Borrower's control. Bonower shall notify Lender of any extenuating
<br />circumstances. Borrower shall not commit waste or destroy, damage or substanrially change the Property or allow
<br />the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Properiy is
<br />vacant or abandoned or the loan is in default Lender may take reasonable acrion to protect and preserve such vacant
<br />or abandoned Property. Borrower shall also be in default if Bortower, during the loan application process, gave
<br />FHA NFBRASKA D� OF TRUST - MERS �sgle�
<br />NmOTL.FHA 07/03/12 Page 3 of 9 www.docmagfc.com
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