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201210286
<br />1111067502
<br />Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a
<br />foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any
<br />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
<br />follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly
<br />charge by 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
<br />other hazard insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization of the principal of the Note;
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the
<br />Property, whether now in existence or subsequently erected, against any hazards, casualties, and
<br />contingencies, including fire, for which Lender requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the
<br />Property, whether now in existence or subsequently erected, against loss by floods to the extent required by
<br />the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and
<br />any renewals shall be held by Lender 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 Lender immediate notice by mail. Lender may make proof
<br />of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and
<br />directed to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All
<br />or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the
<br />indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the order
<br />in paragraph 3, and then to prepayment 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 date of the
<br />monthly payments which are referred to in paragraph 2, or change 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 />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
<br />extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies 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 />residence 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 the
<br />Secretary determines this requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist which are beyond Borrower's control. Borrower shall notify Lenders of any extenuating
<br />circumstances. Borrow shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable wear and tear excepted. Lender 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 the 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 the lease. If
<br />FHA Nebraska Deed of Trust - 06/12
<br />391.14 Page 3 of 8
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