|
<br />;r
<br />
<br />~"~
<br />
<br />450806351
<br />
<br />200803932
<br />
<br />annual amount for each item shall be accumulated by Lender within a period ending one month before an item would become
<br />delinquent. Lender shall hold the amounts collected in trust to pay items (a), (b), and (c) before they become delinquent.
<br />If at any time the total of the payments held by Lender for items (a), (b), and (c), together with the future monthly payments
<br />for such items payable to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount of
<br />payments required to pay such items when due, and if payments on the Note are current, then Lender shall either refund the excess
<br />over one-sixth of the estimated payments or credit the excess over one-sixth of the estimated payments to subsequent payments by
<br />Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a), (b), or (c) is insufficient to pay the
<br />item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on or before the date the item
<br />becomes dUe.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her
<br />designee. In any year in which the Lender must pay a mortgage insurance premium to the Secretary, each monthly payment shall also
<br />include either: (i) an installment of the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly
<br />charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary. Each monthly installment of the
<br />mortgage insurance premium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender
<br />one month prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held
<br />by the Secretary, each monthly charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal
<br />balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall be
<br />credited with the balance remaining for all installments for 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 Borrower. Immediately
<br />prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance
<br />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 follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization of the principal of the Note;
<br />Fifth, to late charges due under the Note.
<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 requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all
<br />improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the
<br />Secretary. All insurance 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 loss if not made
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly
<br />to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied by Lender, at its
<br />option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts
<br />applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged Property.
<br />Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly payments which are referred
<br />to in paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an amount required to pay all
<br />outstanding indebtedness 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 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 roperty; Borrower's Loan Application; Leaseholds.
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this
<br />Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of
<br />occupancy, unless the Secretary determines this requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist which are beyond Borrower's control. Borrower shall notify Lenders of any extenuating circumstances. Borrow
<br />shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear
<br />and tear 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, during the
<br />loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any
<br />
<br />FHA NebraSka Deed Of Trust. 2/91
<br />@3l 391.19
<br />
<br />Page 2 of6
<br />
<br />Lii/)
<br />
<br />~(}J
<br />
|