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2oiooss44 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 legally 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 Borrower in and to insurance policies in force shall pass to the purchaser. 4. Qccupancy, Preservation, Maintenanc:o and Protection of the Property; Borrower's Loan Application; L®aseholds. Borrower shall occupy, establish, and use the Property as Borrower's pnncipal residence after the execution of this Security Instrument, and Borrower (or at least one Borrower, if initially mare than one person are Borrowers) shall continue to occupy the Property as 13orrowei's principal residence for the term of the Security Instrument. "Principe( residence" shall have the same meaning as in the Loan Agreement. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and ter excepted. Borrower shall also be in default if Borrower, during the ban a plication process, gave materially false or inaccurate information or statements to Lender (or farted to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but oat limited to, representations concerning Borrower's occupancy of the Property as a principal resklence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. tf Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing. 5. Charges to Borrower and Protection of Lenders Rights in the Property. Borrower shall pay all govemmerital or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to the enti~ which is owed the payment. If failure to pay would adversely affect Lender's interest in the roperty, upon Lender's request Borrower shall promptly famish to Lender receipts evidencing these payments. Borrower shalt promptly discha a any Iran. which has priority over this Security Instrument rn the manner provided in Paragraph 12~c). if Borrower fails to make these payments or the propert~l charges required by Paragraph 2, or fails to perform 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 Borrower all amounts due to the Secretary. for the Mortgage Insurance Premium as defined in the Laan Agreement as well as all earns due to the ban servicer for servicing activities as defined in the Loan AAg~reement. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower as provided for in the Loan Agreement and shall be secured by this Security Instrument. B. Inspection. Lender or 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 Borrower notice pprior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must be related to Lenders interest in the Property. If the Property is vacant or abandoned or the ban 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 ar 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 aver an amount regwired to pay all outstanding indebtedness under the Second Note and this Security Instrument shall be paid to the entity legally entitled thereto. 8. Fees. Lender may collect fees and charges authorized by the Secretary for the Home Bquity Conversion Mortgage Insurance Program. First American Loan Production Services Nebraska HECM ARM Second Security Instrument © 2008 Fist American Real Estate Solutions LLC FALPS # 89YQ : 02!08 Page 3 NMFL #8914NE (QLNE)