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First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge
<br />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 other
<br />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 for
<br />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 />insurance shall be carried with 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 loss
<br />if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to
<br />make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part
<br />of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the
<br />indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the order
<br />in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged
<br />Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br />monthly payments which are referred to in paragraph 2, or change the amount of such payments. Any excess
<br />insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />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 shall
<br />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 sale
<br />or transfer of the Property) and shall continue to occupy the Property as Borrower's principal residence for at
<br />least one year after the date of occupancy, unless Lender determines this requirement will cause undue
<br />hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste or destroy,
<br />damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and tear
<br />excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default.
<br />Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Borrower shall
<br />also be in default if Borrower, during the loan application process, gave materially false or inaccurate
<br />information or statements to Lender (or failed to provide Lender with any material information) in connection
<br />with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's
<br />occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower
<br />shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and
<br />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 of consequential, in
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in place of
<br />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 payments,
<br />which are referred to in paragraph 2, or change the amount of such payments. Any excess 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 />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in paragraph 2. Borrower
<br />shall pay these obligations on time directly to the entity which is owed the payment. If failure to pay would
<br />adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to
<br />Lender receipts evidencing these payments.
<br />NEBRASKA- Single Family - FHA Security Instrument
<br />Form 94128 1/96
<br />Laser Forms Inc. (800) 446 -3555 A y>� �@
<br />LFI #FHA94128 -MERS 9/11 Page 3 of 7 Initials: /.I �-/ 1 � ..
<br />201508339
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