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201102554
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in existence or
<br />subsequently erected, against any hazazds, casualties, and contingencies, including fire, for which Lender requires insurance. This
<br />insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the
<br />Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance
<br />shall be carried with companies approved by Lender. The insurance policies and any renewals shal( be held by Lender and shall include
<br />loss payable clauses in favor of, and 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 promptly by
<br />Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender, instead
<br />of to Bonower and to Lender jointly. All or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the
<br />reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the order in
<br />paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged Property. Any application of the
<br />proceeds to the 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 indebtedness under
<br />the Note and this Security Instrument 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 indebtedness, all
<br />right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall occupy, establish, and use the Property as Bonower's principal residence within sixty days after the execution of this
<br />Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirement will cause
<br />undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify
<br />Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant or
<br />abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Property.
<br />Borrower shall also be in default if Borrower, during the loan application process, gave nnaterially false or inaccurate information or
<br />statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note,
<br />including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br />Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or conseyuential, in connection with any condemnation
<br />or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and shall be paid to Lender to
<br />the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such
<br />proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the
<br />order provided in paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or
<br />postpone the due date of the monthly payments, which are refened 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 shall be paid to the
<br />entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Bonower shall pay all governmental or municipal
<br />charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these obligations on time directly to the entiry
<br />which is owed the payment. If failure to pay would adversely affect Lender's interest in the Properiy, upon Lender's request Borrower
<br />shall promptly fumish to Lender receipts evidencing these payments.
<br />If Bonower fails to make these payments or the payments required by paragraph 2, or fails to perform any other covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the
<br />Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever
<br />is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taaces, hazard insurance and
<br />other items mentioned in paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be secured by this Security
<br />Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of Lender, shall be
<br />immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Inshument unless Borrower: (a) agrees in writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br />against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or
<br />FHA Nebraska Deed of Trust with MERS — 4/96 Amended 7/04
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