|
200400346
<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 for
<br />such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of, the insurance proceeds may
<br />be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security
<br />Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment of principal, or
<br />(b) to the restoration 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 amount of such
<br />payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note
<br />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
<br />the 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 days after
<br />the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue
<br />to occupy the Property as Borrower's principal; residence for at least one year after the date of occupancy, unless Lender
<br />determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist which are
<br />beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit
<br />waste or destroy, damage or substanially change the Property or allow the Property to deteriorate, reasonable wear and
<br />tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default. Lender
<br />may take reasonable action to protect and preserve such vacant or abandoned property. Borrower shall also be in default
<br />if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender
<br />(or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including,
<br />but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br />Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the 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 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 the
<br />Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note
<br />and this Security Instrument, first to any delinquent amounts applied in the order provided in paragraph 9, and then to
<br />prepayment of principal. 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 proceeds over
<br />an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the
<br />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 on
<br />time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the
<br />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 affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations),
<br />then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property,
<br />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 ayment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender
<br />subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien
<br />which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower
<br />shall satisfy the lien or take one or more of the actions set forth above within 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,
<br />require immediate payment in full of all sums secured by this Security Instrument if:
<br />FHA Nebraska Mortgage - 5195 Page 3 of 6 03 -3456
<br />J� � ��H
<br />
|