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<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the indebtedness, all
<br />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 Properly; 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 ar transfer of the Property) and shall continue to occupy the Property as
<br />Borrower's principal residence far 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.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation
<br />or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and shall be paid to Lender to
<br />the extent of the full amount of the 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 delinquent amounts applied in the
<br />order provided in paragraph 3, and then to prepayment of principal. 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 amount of such payments. Any excess
<br />proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the
<br />entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or municipal
<br />charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these obligations on time directly to the entity
<br />which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower
<br />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's rights 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 Security
<br />Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of Lender, shall be
<br />immediately due and payable.
<br />Harrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the hen by, or defends
<br />against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or
<br />(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.
<br />8. Fees. Lender may collect fees and charges authorized by the Secretary.
<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 the
<br />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 1982, 12 U.S.C. 1701j-3(d)) and with the prior approval of the Secretary, require
<br />immediate payment in full of all sums secured by this Security Instrument if:
<br />(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or otherwise
<br />transferred (other than by devise or descent), and
<br />(ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser or grantee
<br />does so occupy the Property, but his or her credit has not been approved in accordance with the requirements of the Secretary.
<br />FHA Nebraska bead of Trust wkh MFRS - 4/86 Amended 7/04
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