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201409435
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amount that may be requir�d for Borrower's escrow account under the Real Estate Settleznent Procedures
<br />Act of 1974, 12 U. S. C. Section 2601 et ,ceq. and implementing re�ulations, 24 CFR Part 3500, as they may be
<br />amended from time to tizne ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursernents or disbursernents before the Borrower' s payments are available in the account may not be based on
<br />amounts due for the mortga�e insurance premium.
<br />If Che amounts held by Lender for Escraw Items exceed the amounts permitted Co be held by RESPA, Lender
<br />shal] account to Sorrower for the excess funds as required by REBFA. If the amounts of funds held by I.ender at any
<br />time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to
<br />make up the shortage as permitted by RESPA.
<br />The �scrow Funds are pledged as additional security for all suxns secured by this 5ecurity Instrument. If
<br />Borrower tenders to Lender the full payment of all such sunas, Borrower's account shall be credited with the balance
<br />rernaining for all installment items (a), (b), and (c) and any martgage insurance premium installrnent that Lender hae
<br />not become obligated to pay to the Secretary, and Lender shall pramptly refund any excess funds to Borrower.
<br />Immediately prior t� a foreclosure sale af the Property ar its acquisitian by Lender, Borrower' s accnunt shall be
<br />credited with any balance remainin� for all installments for items (a), (b), and (c).
<br />3. Applieation of Payments. All payments under paragraphs 1 and 2 sha11 be applied by Lender as follows:
<br />First, to the mort�age insurance premium to be paid by Lender to the Secretary or to the rnonthly charge by thc;
<br />Secretary instead of the monthly mort�age insurance premium;
<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 />�ourth ta amartization of the principal of the Note: and
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all izxiprovements on the Property, whether
<br />now in existence or subsequently erected, a�ainst. any hazards, casualties, and contingencies, including i"ire, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. Borrower shall also insure all improvements on the Property, whether now in existence or suhsequently
<br />erected, against loss by floods to the extent required by the Secretary. All 'vnsurance shall be carried with companies
<br />approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include los� payable
<br />clauses in favor of, and in a fornl acceptable to, Lender.
<br />In the event of 1oss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />rnade promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender jaintly. All or any part of the insurance
<br />proceed� may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayrraent
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application o£ the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this 5ecurity Instzument or other transfer aF title to the Praperty that extinguishes
<br />the indebtedness, all right, title and interest of Bonrower in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occapancy, Preservation, M�intenance and Protection of the kroperty; Sorrower' s Loan Application;
<br />Leaseholds. Sorrawer shall occupy, establish, and use the Property as Bozrower's principal r�sidence within sixty
<br />days after the execution of tk�is Security Instrument (or within sixty days of a later sale or transfer of the Froperty)
<br />and sha11 continue to occupy the Property as Borrower' s principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Eorrower, or unless extenuating
<br />circu�nstances exist which are be ond Borrower's control. Borrower shall noti Lender of an extenuatin
<br />A^ 0451018787
<br />FHA Deed of Trust-NE /�- 4l96
<br />VMP � " x VMP4R(NE'� (0809)
<br />Wolters Kluwer Financial Services Paga 3 of 9
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