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200108098
<br />circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or
<br />abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave materially
<br />false or 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 Borrower's
<br />occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply
<br />with the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not
<br />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 connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby
<br />assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under
<br />the Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under
<br />the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in paragraph 3,
<br />and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone
<br />the due date of the monthly payments, which are referred to in paragraph 2, or change the amount of such payments.
<br />Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security
<br />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
<br />or municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these obligations
<br />on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in
<br />the Property, upon Lender's request Borrower 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
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property, including payment of taxes, hazard 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
<br />secured by this Security Instrument. These amounts shall bear interest from the date of disbursement at the Note rate,
<br />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 Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory
<br />to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is
<br />subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying
<br />the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving
<br />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
<br />defaults, require 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
<br />prior to or on the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained
<br />in this Security Instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including section 341(d) of
<br />the Garn-St. Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j - 3(d)) and with the prior approval
<br />of the Secretary, require 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
<br />or otherwise 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
<br />purchaser or grantee does so occupy the Property, but his or her credit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full, but
<br />Lender does not 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
<br />Lender's rights, in the case of payment defaults, to require immediate payment in full and foreclose if not paid.
<br />This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulations of the
<br />Secretary.
<br />(e) Mortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not determined
<br />to be eligible for insurance under the National Housing Act within 60 DAYS from the
<br />date hereof, Lender may, at its option require immediate payment in full of all sums secured by this Security
<br />Instrument. A written statement of any authorized agent of the Secretary dated subsequent to
<br />60 DAYS from the date hereof, declining to insure this Security Instrument and the Note, shall be
<br />deemed conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised
<br />by Lender when the unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance
<br />premium to the Secretary.
<br />NEBRASKA -FHA DEED OF TRUST 6/96
<br />Document Systems, Inc. (800) 649 -1362 Page 3 of 6
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