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2oi�oois� Borrower a notice identifying the lien. Borrower shall satisfy thc licn or take one or more of the actions set farth above within ten (10) days of the giving of notice. 13. Relationship to �'irst Security Instrument. (a) Second Security Instrument. In order to secure payments which the Secrctary may make to or on behalf of Borrower pursuant to Scction 255(i)(1)(A) of the National Housing Act and the Loan Agrecmc,•nt, the 5ecretary has required Borrower to execute a Sccond Noce and this 5econd Security Instrument. Borrowcr alsa has cxecuted a First Note and First Security Instrument. (b) Relationship of First and Second Security Instruments. Paymcnts made by the Secretary shall not be included in the debt under the First Notc unless: (i) The First Security Instrument is assi�ncd to thc Sccretary; or (ii) The Secretary accepts rcimbursement by the holder of the First Note for all paymc,�nts rnade by the Secretary. If the circumstances described in (i) or (ii) occur, thcm all payments by the Secretary, including interest on the payrnents but cxcluding late charges paid by the Secretary, shall be included in the debt under the First Note. (c) Effect on Borrower. Where there is no assignment or reirnbursemcnt as described in (b)(i) or (ii) and the Sccretary makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts pwcd undcr the First Note, or pay any rents and revcnucs of the Property under Paragraph 19 to the holder of thc First Note or a receiver of the Froperty, until the Secretary has required payment in f'ull of all outstanding principal and acerued interest under the Second Note; nr (ii) Be obligated tn pay intcrest or shared appreciation under the First Note at any time, whether accrued before or after the paymcnts by the Secretary, and whether or not accrue�l interest has bccn included in the principal balance under the First Note. (d) No Duty of the Secretary. The Secretary has no duty to thc holder of the First Note to enforce covenants of the Second Security Instrument or to take actions to preserve the valuc of the Property, even though the holder of the First Note may be unable to collect amounts owcd under the First Note because of restrictions in this Paragraph 13. (e) Restrictions on Enforcement. Notwithstanding anything else in this Security Instrument, the Borrower shall not be abligated to comply widi the covenants hereof, and Paragraph 19 shall have no force and effect, whenever there is no outstanding balancc undcr the Sccond Note. 14. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercisin� any right or remedy shall not be a waiver of, or preclude the exercisc af, any right or remedy. 15. Successors and Assigns Bound; Joint and Several Liability. Borrowcr may not assign any rights ar obligations under this Security Instrument or under thc Second Notc, except to a trust that meets the requiremcrnts af the Secretary. Barrowcr's covenants and agreements shall be joint and scvcral. 16. Notices. Any naticc tp Borrower provided for in this 5ecurity Instrument shall bc given by delivering it or by mailing it by first class mail unless applicable law rcquires usc; of another method. The notice shall be dirccted to the Property Address or any other address all Borrowers jointly designate. Any notice to the Secretary shall be given by tirst class mail to the HUD Field Office with jurisdiction over the Property or any other address designatcd by the Secretary. Any natice provided for in this Security Instrument shall be deemc.d to have been given to Borrower or Lender when given as prpvided in this Paragraph 16. l7. Governing Law; Severability. This Security Instrument shall be govcrned by Federal law and the law of the Nebraska 2" Deed oF'I'rust (Fixed) Page 5