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2oioo4~ss security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under the Second Note and this Security Instrument. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Second Note and this Security Instrument shall be paid to the entity legalty entitled thereto. In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the indebtedness, all right, title and interest of Harrower in and to insurance policies in force shall pass to the purchaser. 4. Uccupaney,Preservation,Maintenanceand Protectionof the Property;Borrower'sl_oan Application;Leaseholds.Borrower shall occupy, establish, and use the Property as Borrower's principal residence after the execution of this Security Instrument, and Borrower (or at least one Borrower, if initialty mare than one person are Borrowers) shall continue to occupy the Property as Borrower's principal residence for the term of the Security Instrument. "rrincipal residence" shall have the same meaning as in the Loan Agreement. Borrower shall not commit waste or destroy, damage or substantialty change the Property or allow the Property to detetrnrate, reasonable wear and #ear excepted. Horrower shall also be in default if Bamawer, during the kyan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the ban evidenced by the Note, including, but not limited to, representat~ns concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Bomawer shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the leasehaki aril fee title shall not be merged unless Lender agrees to the merger in writing. 5. Chargesto Borwowerand Protectionof Lendor'sRightsin the Property. Borrower shall pay all governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Harrower shall pay these obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptty furnish to Lender receipts evidencing these payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument in the manner provided in Paragraph 12(c). If Borrower fails to make these payments or the property charges required by Paragraph 2, or fails to pertorm any other covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2. To protect Lender's security in the Property, Lender shall advance and charge to Horrower all amounts due to the Secretary for the Mortgage Insurance Premium as defined in the Loan Agreement as well as all sums due to the loan servicer far servicing activities as defined in the Loan Agreement. Any amounts disbursed 6y Lender under this Paragraph shall become an additional debt of Harrower as provided far in the Loan Agreement and shall be secured by this Security Instrument. B. Inspection. Lander ar its agent may enter on, inspect or make appraisals of the Property in a reasonable manner and at reasonable times provided that Lender shall give the Horrower notice prior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must be related to Lender's interest in the Property. If the Property is vacant or abandoned or the loan is in default, Lender may take reasonable action to protect and preserve such vacant or abandoned Property without notice to the Borrower. 7. Condemnation.The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation shall be paid to Lender. The proceeds shall be applied first to the reduction of any indebtedness under a Second Note and this Security Instrument. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Second Note and this Security Instrument shall be paid to the entity legalty entitled thereto. 8. Fees. Lender may collect fees and charges authorized by the Secretary far the Home Bquity Conversion Mortgage Insurance Program. First American Loan Production Services Nebraska HECM Secontl Security Instrument ~ 20p8 First Amedcan Real Estate Solutions LLC FALPS>x US10~ 04/06 NMFL #8608ANE pac Id: L1GNE Page 9