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2 O � O v O J o J v2 WBCD LO1�N # 503077623
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Oth�r Hazard Insurance. Borrowershall insure all improvements on the Property, whether now
<br />in existence or subsequently �recCed, against any hazards, casualties, and contingencies, including fire, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires.
<br />Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against
<br />loss byfloods to the extent required bythe Secretary. All insurance shall be carried with companies approved by Lender.
<br />The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and
<br />in a farm acceptable to, L�nder.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not mad�
<br />prorrtptly by Borrawer. Each insurance campanyconcerned is herebyauthorized and directed to make paymentforsuch
<br />(oss directly to Lender, instead af to Borrower and to Lender jointly. All or any part of the insurance proceeds may be
<br />applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Nate and this Security
<br />Instrument, first to any delinquent amounts applied in the arder in paragraph 3, and then to prepayment of principal,
<br />or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not
<br />extend or postpone the due date vf the monthly payments which are referred to in paragraph 2, or change the amount
<br />nf such payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under
<br />the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of fi�reclosure of this Security Instrument or other transfer o� title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Barrower in and to insurance policies in force shall pass to the purchaser.
<br />5. �ccupancy, Preservaticn, Maintenance and Protectivn of the Praperty; Borrower's Loan Appltcatlon;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Barrower's principal residence within sixty days
<br />after the execution of this Security Instrument (ar within sixty days of a later sale or transfer of the Prvperry) and shall
<br />continuc to occupy the Property as Barrawer's principal residence far at least one year after the date of occupancy,
<br />unless Lender d�termines that requirementwill cause undue hardship for Borrower, or unless extenuating circumstances
<br />exist which are beyond Borrower's control. Borrower shall notify Lender of any exCenuating circumstances. Borrower
<br />shall not 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 th� Property if the Property is vacant or abandoned or the loan
<br />is in default. Lender may take reasonable action to prot�ct and preserve such vacant or abandoned Property. Borrower
<br />shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information
<br />or statements to Lender (arfailed to provide Lenderwith any material information) in cannection with the loan evidenced
<br />by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a
<br />principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease.
<br />If �orrower acquires fe� title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the
<br />merger in writing.
<br />6, Candemnatian. The proceeds of any award ar claim for damages, direct or consequential, in connectinn with
<br />any condemnation or other taking of any part of the Praperty, ar for cpnveyance in place of condemnation, are hereby
<br />assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the
<br />Note and this Security Instrument. Lender shall apply such proceeds to the reduction ofthe indebtedness under the Note
<br />and this S�curity Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to
<br />prepayment �f principal. Any application of the praceeds to the principal shall not extend or pastpone the due date of
<br />the monthly payments, which are referred to in paragraph 2, or change the amount of such payments. Any excess
<br />praceeds overan amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall
<br />be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rlghts in the Property. Borrower shall pay all
<br />governmental ar municipal charges, fines and impositions that are not included in paragraph 2. sorrower 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 Barrnwer shall promptlyfurnish to Lender receipts evidencing
<br />these payments.
<br />If Borrawer fails to make these payments or the payments required by paragraph 2, or fails to perform any oth�r
<br />covenants and agreements contained in this Security Instrument, ar there is a legal proceeding that may significantly
<br />affect Lender's rights in the Properky (such as a proceeding in bankruptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Properry and Lender's rights
<br />in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall became an additional debt of Borrower and be
<br />secured by this Security Instrument. These amounts shall bear interest fram the date of disbursement, at the Note rate,
<br />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 unl�ss Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a mann�r acceptable tn Lender; (b) contests
<br />in goad faith the lien by, or defends against enforcement af the lien in, legal proceedings which in the Lender's opinion
<br />aperate to prevent the enforcement of the lien; or (c) secures from the halder of the lien an agreement satisfactory to
<br />Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject
<br />to a lien which may attain priarity over thi� Security Instrument, Lender may give Borrower a notice identifying the lien.
<br />Borrower shall satisfy the lien or take one ar mare af the actions set forth abave within 10 days of the giving of notice.
<br />$. Faes. 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
<br />defaults, require imm�diat� payment in full of all sums secured by this Security Instrument if:
<br />FHA Nebraska Deed of �rust - 4/88
<br />Online Documents, Inc.
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