|
99 110597
<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 a�plication process, gave materially false or inaccurate information or statements to Lender
<br /> (or failed to provide Lender vv�th 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 �roceeds of any award or claim for damages, direct or consequential, in connection with
<br /> any condemnation or other takuig 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 d'uectly 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 Securit� Instrument, or there is a legal proceeding that ma�significantly affect
<br /> Lender's rights m the Property (such as a proceedmg 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,hazazd 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 &om 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 wluch has priority over this Security Instrument unless Borrower: (a) �
<br /> agrees in writing to the payment of the obligation secured by the hen 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 Pro�erty 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 Secretazy.
<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 Mongage-5/95 Page 3 of 6
<br /> Page 3 Form SoHware by Automated Real Estate Services,Inc. 1-800-370-1285 ESOUITIN/88030788
<br /> `
<br />
|