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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
<br />and for the periods that Lender requires. Borrower shall also insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against loss by floods to the extent required by the
<br />Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies
<br />and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a
<br />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.
<br />All or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the
<br />reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent
<br />amounts applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration
<br />or repair of the damaged Property. Any application of the proceeds to the principal shall not extend
<br />or postpone the due date of the monthly payments which are referred to in paragraph 2, or change the
<br />amount of such payments. Any excess insurance proceeds over an amount required to pay all outstand-
<br />ing indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled
<br />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
<br />force 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 (or within sixty days of a later
<br />sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal resi-
<br />dence for at least one year after the date of occupancy, unless Lender determines that requirement will
<br />cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's
<br />control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste or
<br />destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable
<br />wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan
<br />is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Property.
<br />Borrower shall also be in default if Borrower; during the loan application process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material information)
<br />in connection with the loan evidenced by the Note, including, but not limited to, representations concerning
<br />Borrower's occupancy of the Property as a principal residence. if this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in place
<br />of condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the
<br />indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such
<br />proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any
<br />delinquent amounts applied in the order provided in paragraph 3, and then to prepayment of principal. Any
<br />application of the proceeds to the principal shall not extend or postpone the due date of the monthly pay-
<br />ments, which are referred to in paragraph 2, or change the amount of such payments. Any excess proceeds
<br />over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument
<br />shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall
<br />pay all governmental or municipal charges, fines and impositions that are not included in paragraph 2.
<br />Borrower shall pay these obligations on time directly to the entity which is owed the payment. If failure
<br />to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall
<br />promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perform
<br />any other covenants and agreements contained in this Security Instrument, or there is a legal proceeding
<br />that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for
<br />condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to
<br />protect the value of the Property and Lender's rights in the Property, including payment of taxes, hazard
<br />insurance and other items mentioned in paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Bor-
<br />rower and be secured by this Security Instrument. These amounts shall bear interest from the date of
<br />disbursement, at the Note rate, and at the option of Lender, shall be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
<br />Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner accept-
<br />able to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in,
<br />legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c)
<br />secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this
<br />Security Instrument. if Lender determines that any part of the Property is subject to a lien which may
<br />FHA Nebraska Deed of Trust - 4196
<br />Ellie Mae, Inc. Page 3 of 6
<br />201502082
<br />LOAN #: 122782
<br />NEVFHADE 0814
<br />NEVFHADE
<br />03/31/2015 02:50 PM PST
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