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200002212 LOAN #: 9960490
<br />be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security Instrument.
<br />Lender shall apply such 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 application of the proceeds
<br />to the principal shall not extend or postpone the due date of the monthly payments, which are referred to in paragraph 2, or change
<br />the amount of such payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and
<br />this Security Instrument 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 pay all governmental or municipal
<br />charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these obligations on time directly to the entity
<br />which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower
<br />shall 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 any other covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br />Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay
<br />whatever is necessary to 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 Borrower and be secured by this
<br />Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of Lender,
<br />shall be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing
<br />to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br />against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien;
<br />or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If
<br />Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender
<br />may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within
<br />10 days of the giving of notice.
<br />8. Fees. Lender may collect fees and charges authorized by the Secretary.
<br />9. Grounds for Acceleration of Debt.
<br />(a) Default. Lender may, except as limited by regulations issued by the Secretary, in the case of payment defaults, require
<br />immediate payment in full of all sums secured by this Security Instrument if
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior to or on the
<br />due date of the next monthly payment, or
<br />(ii)Borrowerdefaultsbyfading, foraperiodofthirty days, toperformany otherobligations containedin this Security Instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including Section 341(d) of the Garrn -St.
<br />Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j -3(d)) and with the prior approval of the Secretary, require
<br />immediate payment in full of all sums secured by this Security Instrument if
<br />(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or otherwise
<br />transferred (other than by devise or descent), and
<br />(ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser or grantee
<br />does so occupy the Propertybut his or her credit has notbeen approved in accordance with the requirements ofthe Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full, but Lender does not
<br />require such payments, Lender does not waive its rights with respect to subsequent events.
<br />(d) Regulations of HUD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's rights, in
<br />the case of payment defaults, to require immediate payment in full and foreclose if not paid. This Security Instrument does
<br />not authorize acceleration or foreclosure if not permitted by regulations of the Secretary.
<br />(e) Mortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not determined to be eligible
<br />for insurance under the National Housing Act within 60 days from the date hereof, Lender may, at its option, require immediate
<br />payment in full of all sums secured by this Security Instrument. A written statement of any authorized agent of the Secretary
<br />dated subsequent to 60 days from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed
<br />conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the
<br />unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the Secretary.
<br />10. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full because ofBorrower's
<br />failure to pay an amount due under the Note or this Security Instrument. This right applies even after foreclosure proceedings are
<br />instituted. To reinstate the Security Instrument, Borrower shall tender in a lump sum all amounts required to bringBorrower's account
<br />current including, to the extent they are obligations of Borrower under this Security Instrument, foreclosure costs and reasonable and
<br />customary attorneys' fees and expenses properly associated with the foreclosure proceeding. Upon reinstatement by Borrower, this
<br />Security Instrument and the obligations that it secures shall remain in effect as if Lender had not required immediate payment in full.
<br />However, Lender is not required to permit reinstatement if (i) Lender has accepted reinstatement after the commencement of
<br />foreclosure proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii)
<br />reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the priority of
<br />the lien created by this Security Instrument.
<br />11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time of payment or modification of
<br />amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not
<br />operate to release the liability of the original Borrower or Borrower's successor in interest. Lender shall not be required to commence
<br />proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured
<br />by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any
<br />forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br />12. Successors and Assigns Bound; Joint and Several Liability; Co- Signers. The covenants and agreements of this Security
<br />Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 9(b).
<br />Borrower's covenants and agreements shall be joint and several. Any Borrower who co -signs this Security Instrument but does not
<br />execute the Note: (a) is co- signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property
<br />under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and
<br />(c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to
<br />the terms of this Security Instrument or the Note without that Borrower's consent. i
<br />FHA Nebraska Deed of Trust - 4/96 Initial
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