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<br />4. Flre, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />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
<br />far the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against loss by floods to the extent required by the Secretary.
<br />All insurance shall be carried with companies approved by Lender. The insurance policies and any
<br />renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form
<br />acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of
<br />loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and
<br />directed to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly.
<br />All ar any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the
<br />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
<br />of the damaged Property. Any application of the proceeds to the principal shall not extend or postpone the
<br />due date of the monthly payments which are referred to in Paragraph 2, or change the amount of such
<br />payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness
<br />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
<br />extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force
<br />shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Harrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within sixty days after the execution of this Security Instrument (or within sixty days of a later
<br />sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender determines that requirement will
<br />cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond
<br />Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not
<br />commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate,
<br />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
<br />or abandoned Property. Borrower shall also be in default if Borrower, during the loan application process,
<br />gave materially false or inaccurate information or statements to Lender (ar failed to provide Lender with
<br />any material information) in connection with the loan evidenced by the Note, including, but not limited to,
<br />representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br />Instrument is vn a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires
<br />fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger
<br />in writing.
<br />6. Condemnation. The proceeds of any award or claim far damages, direct ar consequential, in
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in place
<br />of condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the
<br />indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such
<br />proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any
<br />delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal.
<br />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
<br />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 />7. Charges to Borrower and Protection of Lender's Rights in the Property. Barrawer shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Barrawer
<br />shall pay these obligations on time directly to the entity which is owed the payment. If failure to pay
<br />would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly
<br />furnish to Lender receipts evidencing these payments. `~~/f ~ ~ \
<br />Borrower initials v'' `~ ~C/1`' ,'~J
<br />GMD 01'73 (499) Page 3 of 7 FHA Nebraska Deed of Trust
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