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200206140
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account it) Burrower Cur the excess funds as required by RESPA. If the amounts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br />up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sinus secured by this Security Instrument. If Borrower
<br />tenders to Lender the full payment of all such sums, Borrower's account shall he credited with the balance remaining
<br />for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become
<br />obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior
<br />to a foreclosure sale of the Property or its acquisition by bender, Borrower's account shall be credited with any balance
<br />remaining for all installments for items (a), (b), and (G.
<br />3. Application of payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />ITR81', to the mortgage insurance premium to be paid by Lender to the Secretary or to Ore oantOdy charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assewsnnents, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIRD. to interest due under the Note;
<br />FOURTH, to amortization of [tic principal of the Note; and
<br />DH ell, to late charges due under the Note
<br />4. Fire, Flood and Other Hazard tnsmmnge- Borrower shall insure all improvements on the Property, whether
<br />now in exisn;ne; or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br />Lender requires insurance. This insurance shall be maintained in the moods and for the periods that Lender
<br />requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently
<br />erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies
<br />approved by Lender. Tlae insurance policies and any renewals shall be held by Lender and shall include loss payable
<br />clauses in levor of, and in a form acceptable to, Lender.
<br />In the event of toss, Borrower shall give Under immedian, 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
<br />I,,, such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to pmpayruent
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indchtcdnuvs under the Note 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
<br />purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of dw Property; Borrower's Loan Application;
<br />Ixaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br />alter the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br />continue to occupy the Property as Borrower's principal residence fur at Icast one year after the date of occupancy,
<br />unless the Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating
<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 ,, 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, Burrower shall comply
<br />with the provisions of the lease. If Borrower acquires tee title to the Property, the leasehold and fee title shall not
<br />he merged mdcss Lender agrees to the merger in writing.
<br />FHA NEBRASKA DEED Or TRUST - MEM 6 /96
<br />Does... 1,— Le .'I'M 619 11. P., 3 of X
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