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<br />200801.351
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<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to
<br />exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate
<br />Settlement Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part
<br />3500, as they may be amended from time to time ("RESP A"), except that the cushion or reserve permitted by
<br />RESP A for unanticipated disbursements or disbursements before the Borrower's payments are available in the
<br />account may not be based on amounts due for the mortgage insurance premium.
<br />I f the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESP A,
<br />Lender shall account to Borrower for the excess funds as required by RESP A. If the amounts of funds held by
<br />Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notifY the Borrower and
<br />require Borrower to make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument.
<br />If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the
<br />balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that
<br />Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's
<br />account shall be credited with any balancc remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs I and 2 shall be applied by Lender as
<br />follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge
<br />by the Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other
<br />hazard insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the
<br />Property, whether now in existence or subsequently erected, against any hazards, casualties, and contingencies,
<br />including fire, for which Lender requires insurance. This insurance shall be maintained in the amounts and for
<br />the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether now in
<br />existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance
<br />shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by
<br />Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of
<br />loss ifnot made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to
<br />make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of
<br />the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness
<br />under the Note and this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3,
<br />and then to prepayment of principal, or (b) to the restoration or repair of the damaged Property. Any application
<br />of the proceeds to the principal shall not extend or postpone the due date of the monthly payments which are
<br />referred to in paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to
<br />the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that
<br />extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall
<br />pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
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<br />FHA Nebraska Deed ufTrust with MF:RS - 4/96
<br />4N(Nt:) (0407)01
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<br />Amended 7/04
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<br />Page 3 01"9
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