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<br />200902032
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<br />proceeds to the 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 indebtedness under
<br />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 indebtedness,
<br />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; 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 (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirement will cause
<br />undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify
<br />Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant or
<br />abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Property.
<br />Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or
<br />statements to 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 this Security
<br />Instrument 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.
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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 assigned and shall be
<br />paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security Instrument.
<br />Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent
<br />amounts applied in the order provided in paragraph 3, and then to prepayment of principal. 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 change the amount
<br />of such payments. Any excess 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.
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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 time directly to the
<br />entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request
<br />Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perform any other covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br />Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever
<br />is necessary to protect the value of the Property and Lender'srights in the Property, including payment of taxes, hazard insurance and
<br />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 by this
<br />Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of Lender, shall
<br />be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or
<br />defends against enforcement ofthe lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien;
<br />or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of
<br />the giving of notice.
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<br />8. Fees. Lender may collect fees and charges authorized by the Secretary.
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<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, require
<br />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 to or on
<br />the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this Security
<br />Instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including Section 341(d) of the
<br />Garn-St. Germain Depository Institutions Act of] 982, 12 V.S.C. ] 701}3(d)) and with the prior approval of the Secretary,
<br />require immediate payment in full of all sums secured by this Security Instrument if:
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<br />FHA Nebraska Deed of Trust with MERS - 4/96
<br />IDS, Inc.
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<br />Page 3 of 6
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<br />Amended 7/04
<br />Initials G"c- 1:6
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