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<br /> from rimc to timc("RH;SPA"), except that the cushion or reserve permiLtcd by RESPA for unandcipated disburscmcnts
<br /> or disbursements hcforc the Borrower's payments are available in ihe acconnt may not be based on arnounLs due for
<br /> the morlgagc insurancc prcmium.
<br /> If the amount�held by Lender for Escrow Items exceed the amounts permitted to be hcld by RESPA, Lender shall
<br /> account to Yxirrower for the excess�unds as required by RESPA. lf thc amounts of funds held by Lender at any time
<br /> are not sufficient to pay the Escrow Items when due, Leuder may noti fy the Borrower und require Borrow�7 to make
<br /> up the shortage as perniitted by RFSPA.
<br /> The Escrow Funds are pledged xs additional security for all sums secured by this Seciuity Instrumcnt If
<br /> Borrower tenders to Lender the fuI] paymenL of all such sums, Borrowcr's 2ccount shxll be credited witL thc balance
<br /> remaining for all instxllment items(a), (h), and(c)and any mortgage insiu ance premium installment that Lcnder has
<br /> not bceome obligaLcd to pay to the Seceetary, and Lender shall prompfly reYund any excess funds to Borrower.
<br /> Immcdiately prior to a foreclosL�re sale of the Property ar its acquisition Uy Lender, Borrower's accotm[shall be
<br /> credited with any balance remaining for all instalhnents for items (�), (b), a��d(c).
<br /> 3. Application of Payments. All payinents under par�graphs 1 and 2 shall be applied by Lender as follows:
<br /> FIRST, to the mortgage insurauce premium to be p�id by Leuder to the Secretary or ko the mond�ly cl�arge by
<br /> the Secretary iustead of the monthly mortgage insurance premiwn;
<br /> SECOND,to any taxes, special assessnients, Icaschold payments or ground rents, a»d firq flood and oLhcr hazard
<br /> insurance prennums, as required;
<br /> THIRD, to interest due under thu No�c;
<br /> FOURTH, to amorLira�ion of the principal of the Note; and
<br /> FIFTH, to late charges due under the Note.
<br /> 4. P'irc, F7ood and OU�cr Hazard Insurance. Borrowe� shall insure all improvemcnts ou the Pro}�crty,
<br /> whether now in existence or subsequently erccted, against any lk�tzards, casualties, and contingeucies, inchGding 6re,
<br /> for which Lender requires insu�ance. This insurance shall be maintained iu the amounts aud for the periods that
<br /> Lender requires. Borrower shall al;o insLve all improvements on the Property, whether now in existence or
<br /> subseyucntly crected,against loss by floods co the extant�equired hy the Secretary. All insurauce shall 6e carriedwith
<br /> co�npanie5 approved by Lender. 'rhe insurance policies and any renewals shall be held by Lender and sltall include
<br /> loss }�ayahle clauses in favor of, and in 2 form acceptable to, Lendex.
<br /> ln thc cvent of loss, Borrower shall give Lender immediatc notice by mail. Lender may makc proof of loss i f not
<br /> madc F�romptly by Borrowcr. Gach insnrauce company concerned is hereby auLhorized and directcd to tnake paymcnt
<br /> for such loss dircetly to Lcnder, uistead of to Borrower and to Lender jointly. All or any part of the insurance
<br /> procccds may bc applied by Lender, at its opdon, either(a)to the reduction of the indebtedncss under the Note and
<br /> ihia Sccurity instrumcnt, flrst to any deliuqt�ent amounts aF�plied in the order in paragraph 3, and then to prepayment
<br /> of principal, or (b) to the restoration or repair of Che damaged Property. Any application of the procecds to the �
<br /> principal shall not extend or postpone tlte due date of t6e mrn�thly payrnenLs which are referred to in paragraph 2, or
<br /> change the amocu�t of such payments. Any escess insurancc proceeds over an amoun[requircd to pay all outstanding
<br /> indebtedness under die Note and lliis Security Inslrument shall be paid [o the enkity legally entitled tl�creto.
<br /> In the event of forec;losure of this S�urity Iastrument or other trarLSfer of title W the Propzrty that extinguishes thc
<br /> indebt�edness, al] right, title and interesl of Borrower in and to insurance policies in fnrce sha1L pass vi the ptuchaser.
<br /> 5. Occupancy, Preservation, Mainteuance and Protection of t6e Property;Borrower's Loan Appiieation;
<br /> Leaseholds. Borrower shall occuF�y, csta6lish, aud use the Properry as Borrowcr's principal residence within sixty
<br /> days after the execution of this Securiry Instrument(or within sixty days of a later sale or transfer of tlie Pruperty)
<br /> and shall wntinuc to owupy the Property as Borrower's F�rincipal residencc for aY]east one year after the date of
<br /> occupancy,unless L ender determines that requirement wi I I cause undue hardship for Borrower,ur unless cxtenuating
<br /> circumstances exist which are beyond Borrower's control. Borrowcr shall uotify Lender of' any extenuating
<br /> circttmsf��tnces. Bo�rower shall not commil waste or destroy, da.mage or substantially change the Property or allow
<br /> the Prope�ry to deteriorate, reasonable wcar and tear excepted. Lcnder may inspcet the Property if the Property is
<br /> vacuit or abandoned or the loa�i is in cleCauit. Lender may take rcasonable action to protect and preserve such vacant
<br /> or abandoned Properry. Rorrowcr shall also be in def<�ult �f Bortowe�, during the loan app�ication process, g�ve
<br /> FHA NEBR45KA DEFD OF TRUST - MFRS DocMagicQ�r�amr�i
<br /> NEDOTZ.FHA 07103l12 Page 3 of 9 www.docmagic.com
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