|
<br />200702443
<br />
<br />excess insurance 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 />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.
<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 substantially change the Property or allow the Property to deteriorate, reasonable wear and tear
<br />excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default. Lender may take
<br />reasonable action to protect and preserve such vacant or abandoned Property. Borrower shall also be in default if Borrower,
<br />during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to
<br />provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited
<br />to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument
<br />is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />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 ofthe indebtedness that remains unpaid under the Note
<br />and this Security Instrument. Lender shall apply such proceeds to the reduction ofthe indebtedness under the Note and this
<br />Security Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to prepayment
<br />of principal. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br />payments, which are referred to in paragraph 2, or change the amount of such payments. Any excess proceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity
<br />legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these
<br />obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's
<br />interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these
<br />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 secured
<br />by 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.
<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 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 />(I) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior
<br />to or on the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period ofthirty days, to perform any other obligations contained in this
<br />Security Instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including section 34I(d) of
<br />the Garn- St. Germain Depository Institutions Act of 1982, 12 V.S.C. 1701j - 3(d)) and with the prior approval
<br />ofthe Secretary, require immediate payment in full ofall 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 or
<br />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 purchaser
<br />or grantee does so occupy the Property, but his or her credit has not been approved in accordance with the
<br />requirements of the Secretary.
<br />
<br />FHA NEBRASKA DEED OF TRUST
<br />(R&A) RA0170789 - fmers.ne - rev. 11114/05
<br />
<br />6/96
<br />(Page 3 of 6 pages)
<br />
<br />pJ'
<br />
|