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201305967
<br /> V2 WBCD LOAN # 503936019
<br /> if Lender still held the Security Instrument,each monthly payment shall also include either: (i)a sum for
<br /> the annual mortgage insurance premium to be paid by Lender to the Secretary,or(ii)a monthly charge
<br /> instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a
<br /> reasonable amount to be determined by the Secretary.Except for the monthly charge by the Secretary,
<br /> these items are called "Escrow Items"and the sums paid to Lender are called "Escrow Funds."
<br /> Lender may,at any time,collect and hold amounts for Escrow Items in an aggregate amount not to
<br /> exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate
<br /> Settlement Procedures Act of 1974,12 U.S.C.Section 2601 et seq.and implementing regulations,24 CFR
<br /> Part 1024, as they may be amended from time to time ("RESPA"), except that the cushion or reserve
<br /> permitted by RESPA for unanticipated disbursements or disbursements before the Borrower's payments
<br /> are available in the account may not be based on amounts due for the mortgage insurance premium.
<br /> If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA,
<br /> Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds
<br /> held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may notify the
<br /> Borrower and require Borrower to make up the shortage as permitted by RESPA.
<br /> The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If Borrower tenders to Lender the full payment of all such sums,Borrower's account shall be credited with the
<br /> balance remaining for all installment items(a),(b),and(c)and any mortgage insurance premium installment
<br /> that Lender has not become obligated to pay to the Secretary,and Lender shall promptly refund any excess
<br /> funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender,
<br /> Borrower's account shall be 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
<br /> as 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; and
<br /> Fifth, 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 subsequently erected,against any hazards, casualties, and contingencies,
<br /> including fire,for which Lender requires insurance.This insurance shall be maintained in the amounts and
<br /> for the periods that Lender requires.Borrower shall also insure all improvements on the Property,whether now
<br /> in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All
<br /> insuranceshall becarriedwith companies approved by Lender.The insurance policies and any renewals shall
<br /> be held by Lender and shall include 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
<br /> 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
<br /> of the indebtedness under the Note and this Security Instrument,first to any delinquent amounts applied
<br /> in the order in paragraph 3,and then to prepayment of principal, or(b)to the restoration or repair of the
<br /> damaged Property.Any application of the proceeds to the principal shall not extend or postpone the due
<br /> date of the monthly payments which are referred to in paragraph 2,or ch ange the amou nt of such payments.
<br /> Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the
<br /> 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
<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
<br /> principal residence within sixty days after the execution of this Security Instrument(or within sixty days
<br /> of a later sale or transfer of the Property) and shall continue to occupy the Property as Borrower's
<br /> principal residence for at least one year after the date of occupancy, unless Lender determines that
<br /> requirement will cause undue hardship for Borrower,or unless extenuating circumstances exist which
<br /> are beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances.
<br /> Borrower shall not commit waste or destroy,damage or substantially change the Property or allow the
<br /> 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
<br /> and preserve such vacant or abandoned Property. Borrower shall also be in default if Borrower,during
<br /> the loan application process,gave materially false or inaccurate information or statements to Lender(or
<br /> failed to provide Lender with any material information) in connection with the loan evidenced by the
<br /> Note, including, but not limited to, representations concerning Borrower's occupancy of the Property
<br /> as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the
<br /> FHA Nebraska Deed of Trust-4/96 Initials: 5r4C._ I
<br /> Online Documents,Inc. Page 3 of 7 NEEFHADE 1212
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