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<br /> from time to time("RESPA"),except that the cushion or reserve permitted by RESPA for unanticipated disbursements
<br /> or disbursements before the Borrower's payments are 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 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 time
<br /> are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br /> 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 balance
<br /> remaining for all installment items(a), (b), and(c)and any mortgage insurance premium installment that Lender has
<br /> not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower.
<br /> Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br /> credited with any balance remaining for all installments for items(a), (b), and(c).
<br /> 3. Application of Payments. All payments under paragraphs I 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
<br /> 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 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,
<br /> whether now in existence or subsequently erected,against any hazards,casualties, and contingencies, including fire,
<br /> for 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 carried 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 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 payment
<br /> for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br /> proceeds may be applied by Lender, at its option, either(a)to the reduction of the indebtedness under the Note and
<br /> this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br /> of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br /> principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br /> change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br /> indebtedness under the 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 extinguishes the
<br /> indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br /> 5. Occupancy,Preservation, Maintenance and Protection of the Property;Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br /> days after the execution of this Security Instrument(or within sixty days of a later sale or transfer of the Property)
<br /> and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of
<br /> occupancy,unless Lender determines that requirement will cause undue hardship for Borrower,or unless extenuating
<br /> circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating
<br /> circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow
<br /> the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is
<br /> vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant
<br /> or abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave
<br /> FHA NEBRASKA DEED OF TRUST - MERS Dot:Magic�r
<br /> NEDOTZ.FHA 07/03/12 Page 3 of 9 www.docmagic.corn
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