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200906245
<br />LOAN N0.479656
<br />amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration
<br />or repair of the damaged Property. Any application of the proceeds to the principal shall not extend or
<br />postpone the due date of the monthly payments which are referred to in Paragraph 2, or change the
<br />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
<br />entitled thereto.
<br />In the event of foreclosure of this Security Instrument ar 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 farce shall pass
<br />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 residence
<br />within sixty days after the execution of this Security Interest (or within sixty days of a later sale or transfer of the
<br />Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the
<br />date of occupancy, unless Lender determines this requirement will cause undue hardship for Borrower, or unless
<br />extenuating circumstances exist which are beyond Borrower's control, Borrower shall notify Lender of any
<br />extenuating circumstances, Borrower shall not commit waste or destroy, damage, or substantially change the
<br />Property, ar allow the Property to deteriorate, reasonable wear and tear expected. Lender may inspect the Property if
<br />the Property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and
<br />preserve such vacant or abandoned Property. Borrower shall alsn be in default if Borrower, during the loan
<br />application process, gave materially false or inaccurate information or statements to Lender (ar failed to provide
<br />Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited tn,
<br />representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument
<br />is nn a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the
<br />Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing,
<br />5. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental ar municipal charges, fines, and impositions that are not Included in Paragraph 2. Borrower shall pay
<br />these obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect
<br />Lender"s interest in the Property, upon Lender's request, Borrower shall promptly furnish W Lender receipts
<br />evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perforrn any
<br />other covenants and agreements contained in this Security Instrument, ar there is a legal proceeding that may
<br />significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to
<br />enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property
<br />and Lender's rights in the Property, including payment of taxes, hazard insurance, and other items mentioned in
<br />Paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be
<br />secured by this Security Instrument. These amounts shall bear interest Pram the date of disbursement, at the Note
<br />rate, and at the option of Lender, shall be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Bon-ower;
<br />(a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)
<br />contests in good faith the lien by, or defends against enforcement of the lien in, legal prnceedings which in the
<br />Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br />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
<br />above within 10 days of the giving of notice,
<br />7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in place of
<br />condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness
<br />that remains unpaid under the Note and this Security Instrument. Lender shall apply such proceeds to the reduction
<br />of the indebtedness under the Nate and this Security Instrument, first to any delinquent amounts applied in the order
<br />provided in Paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall
<br />not extend or postpone the due date of the monthly payments, which are referred to in Paragraph 2, or change the
<br />NEBRASKA FHA DOT 01/98 (page 3 of 7f
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