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<br /> Lender may,at any time,collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br /> maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement
<br /> Procedures Act of 1974, 12 U.S.C.Section 2601 et seq. and implementing regulations, 24 CFR Part 3500,as they
<br /> may be amended from time to time("RESPA"), except that the cushion or reserve permitted by RESPA for
<br /> unanticipated disbursements or disbursements before the Borrower's payments are available in the account may
<br /> 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, Lender shall
<br /> account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any
<br /> time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower
<br /> 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. If
<br /> 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 that
<br /> Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br /> Borrower.Immediately prior to a foreclosure sale of the Property or its acquisition by Lender,Borrower's account
<br /> 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 as follows:
<br /> First,to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br /> 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 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, whether
<br /> now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire,for
<br /> 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
<br /> carried with companies approved by Lender. The insurance policies and any renewals shall be held by Lender
<br /> 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 loss if not
<br /> made promptly by Borrower.Each insurance company concerned is hereby authorized and directed to make
<br /> payment for such loss directly to Lender,instead of to Borrower and to Lender jointly.All or any part of the
<br /> insurance proceeds may be applied by Lender,at its option, either(a)to the reduction of the indebtedness under
<br /> the Note and this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3,and
<br /> then to prepayment of principal,or(b)to the restoration or repair of the damaged Property. Any application of
<br /> the proceeds to the principal shall not extend or postpone the due date of the monthly payments which are
<br /> referred to in paragraph 2,or change the amount of such payments. Any excess insurance proceeds over.an
<br /> amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid
<br /> 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 extinguishes
<br /> the indebtedness, all right,title and interest of Borrower in and to insurance policies in force shall pass to the
<br /> purchaser.
<br /> FHA Deed ofTrust-NE _ ppl�`f
<br /> VMP® "'42(NE) (169).00
<br /> Wolters Kluwer Financial Services .
<br /> CHI e of 10
<br /> II H I1111011011111 ,
<br /> I
<br /> 0000NE4878536
<br />
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