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<br />V2 WBCD LOAN # 503153439
<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 Other Hazard lnsurance. Borrower shall insure all improvements on the Property, whether now
<br />in existence or subsequently erected, 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 by the 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 inctude loss payable clauses in favor of, and
<br />in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make paymentforsuch
<br />loss directly to Lender, instead of 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 reductian of the indebtedness under the Note and this Security
<br />Instrument, first to any delinquent amounts applied in the order 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 of the monthly payments which are referred to in paragraph 2, or change the amount
<br />of such payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under
<br />the Note and this Security lnstrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Pratection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br />after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy,
<br />unless Lenderdetermines that requirementwill cause undue hardshipfor Borrower, or unless extenuating circumstances
<br />exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating 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 the Property if the Property is vacant or abandoned or the loan
<br />is in default. Lender may take reasonable action to protect 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 (or failed to provide Lenderwith any material information) in connection 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 tease.
<br />If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the
<br />merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequentiat, in connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance 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 shalf apply such proceeds to the reduction of the indebtedness under the Note
<br />and this Security Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to
<br />prepayment of principal. Any application of the proceeds to the principal shall not exfend or postpone 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 />proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shal(
<br />be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in paragraph 2. Borrower 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 Borrower shall promptlyfurnish to Lender receipts evidencing
<br />these payments.
<br />If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perform any other
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />afFect Lender's rights in the Property (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 Property and Lender's rights
<br />in the Property, incfuding payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be
<br />secured by this Security Instrument. These amounts shall bear interest from 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 unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of the lien; or (c) secures from the holder 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 priority over this Security Instrument, Lender may give Borrower a notice identifying the lien.
<br />Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br />8. Fees. 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 ot payment
<br />defaults, require immediate payment in full of all sums secured by this Security Instrument if:
<br />FHA Nebraska Deed of Trust - 4/96 Initials :
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