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<br />from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disb�sements
<br />or disbursements before the Banower' s payments aze 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 permuitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess fu�nds as rec�uired by RESPA. If The amounts of fimds held by Lender at any time
<br />are not sufficien,t to pay the Escrow Items when due, Lender may notify the Bonower and require Borrower to make
<br />up the shoriage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for aIl sums secured by this Security 7nstrument If
<br />Borrower tendezs to Lender the full paymettt of all such sums, Borrower' s account sha11 be credited with the balance
<br />remaining for a11 installment items (a), (b), and (c) and any mortgage insu�ance premium insta.11ment that Lender has
<br />not became obligated to pay to the Secretary, and Lender shall prompfly refund any excess funds to Borrower.
<br />Immediately prior to a foreclosuxe sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />credited with any balance rema.ining for all installments for itexns (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs 1 and 2 sha11 be applied by Lender as follows:
<br />FIILST, 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 mor��age insurance premium;
<br />SECOND, to any taxes, special assessments, leasehold payx�aents or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIltD, 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 Hazard Insurance. Bonower shall insure all improvenaen�tss on the Property,
<br />whether now in existence or subsequenfly erected, against any hazards, casualties, and contingeacies, including fue,
<br />for wbuch Lender requires insurance. This insura�qce shall be maintained in the amounts and for the peziods that
<br />I.ender requires. Bonower shall also insure all unprovements on the Property, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. A11 insurance shall be ca.rried 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 fa.vor of, and in a form acceptable to, Lender_
<br />In the event of Ioss, Bonower shall give Lender i.mmediate notice by mail. Lander may make proof of loss if not
<br />made promptly by Borrower. Each insurance company concernecl is hereby authorized. and directed to make payment
<br />for such loss directly to Lend.er, instead of to Bonower aud to Lender joinfly. AlI or any part of the insurance
<br />proceeds ma.q be applied by T�ender, at its option, either (a) to the reduction of rhe iundebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts a�lied in the order in paragraph 3, and then to prepayment
<br />of pzi.ncipal, ar(b) to the restoration or repair of the da�maged Properiy. Any application of the graceeds to the
<br />principal shall not extend or postpone tha due date of the monthly payments which are referred to in pazagraph 2, or
<br />change the amount of such p�.yments. Any excess insurance proceeds over an amount requized to pay ali outstan.ding
<br />indebtedness under the Note and this Security Instrument shall be paid Yo the entity legally entifled fliereto.
<br />In the event of for�losine of tUis Sec�uity Instrument or other iransfer of title to the Property tbat e�inguishes the
<br />indebtedn�ss, all zight, tifle �d "mterest of Borrower in and to insurance policies m force sYiall pass to t3�e purchaser.
<br />5. Occapancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower sha11 occupy, establish, and use the Property as Borrower's pzincipal residence within sixty
<br />days after the executi.on of this Security Tnstrument (oz within siacty days of a later sale or transfer of the Property)
<br />and shall contmue to occupy the Property as Bozzower's pri.ncipal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue bardship for Bonower, or unless eartenuaxing
<br />circumstances exist which aze beyond Borrowez's control. Borrower sha11 notify Lender of any extenuaring
<br />circumstances. Borrower shall not Commit waste or destroy, damage or substantialty change the Property or a11ow
<br />the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property Xs
<br />vacant or abandoned or the loan is in default. I.ender may take reasonable action to protect and preserve such vacant
<br />or abandoned Property. Borrower shall also be in default if Bonowez, during the loan application process, gave
<br />FHA NEBR0.SKA DFFD OF TRUST - MERS
<br />NEDO"2.FHA 07/03/12 Page 3 of 9
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