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<br />200700543
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<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in
<br />existence or subsequently erected, against any hazards, casualties, and contingencies, including fIre, for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower
<br />shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by
<br />floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The
<br />insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a
<br />form acceptable to, Lender.
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<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such
<br />loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be
<br />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 and
<br />this Security Instrument shall be paid to the entity legally entitled thereto.
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<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
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<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
<br />after 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 for at least one year after the date of occupancy, unless
<br />Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist
<br />which are beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not
<br />commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable
<br />wear and tear 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 also be in
<br />default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to
<br />Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note,
<br />including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If
<br />this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires
<br />fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
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<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />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 3, 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
<br />over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to
<br />the entity legally entitled thereto.
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<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or
<br />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.
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<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
<br />Property, including payment oftaxes, hazard insurance and other items mentioned in Paragraph 2.
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<br />Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured by
<br />this Security Instrument. These amounts shall bear interest from the date of disbursement at the Note rate, and at the
<br />option of Lender shall be immediately due and payable.
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<br />GV2171-3 (696) Page 3 of7
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<br />FHA Nebraska Deed of Trust
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