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<br />In the event of foraclosiue of this Security Instrument or other transfer of tifle to the Properry that extinguishes the
<br />indebtedn�, a11 right, tiUe �d 'mterest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />g, Occupancy, Preservation, Maintenance and ProtecHon of the Property; Borrower's Loan Appllca�ton;
<br />Leaseholds. Bonower shall occupy, establish, and use the Property as Borrower' s principal residence within sixty
<br />days after the exec�rtion of this Security Instrument (or within sixty days of a later sale or transfet of the Property)
<br />aad sha11 continue to occupy the Property as Bonower's principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Bonower, or unless e�ctenuating
<br />circum.4iances exist wlrich aze beyond Bonower' s control. Borrower shall notify Lender of any eactenuating
<br />circumstances. Bonower shall not commit waste or destroy, dama�e or substantially change the Property or allow
<br />the Properry ta deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is
<br />vacant or abandoned or the loan is in default Lender may take reasonable action to protect and preserve such vacant
<br />or abandoned Property. Borrower shall also be in default if Bonower, during the loan application process, gave
<br />materially false or inacc�sate information or statements to Lender (or failed to provide Lender with any material
<br />information) in coffiection with the loan evidenced by the Note, including, but not limited to, representations
<br />concetning Bonowet' s occupancy of the Property as a principal residence. If this Security Instrument is on a
<br />leasehold, Borrower sha11 comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee tifle ahall not be merged unless Lender agrees to the merger in writing.
<br />6. CondemnaHoa The proceeds of any award or claim for damages, direct or consequernial, in coanection
<br />with any condeamation or other taldng of aay part of the Propetty, or for conveyance in place of condemnation, are
<br />hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness t6at remains impaid
<br />under the Note and this Security Instrument Lender shall apply such proaeeds to the reduction of the indebtedne�
<br />under the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in
<br />pazagraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend
<br />or pastpone the due date of the monthly payments, wlrich arereferredto in paragraph 2, or change the amount of such
<br />payments. Any excesc proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Insirument shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protecbion of Lender's Rights in the Property. Borrower shall pay all
<br />governmentai or municipal charges, fines and impositions tbat aze not included in paragraph 2. Borrower shall pay
<br />these obligations on time directly to the entity wluch is owed the payment If failure to pay would adversely affect
<br />Lender's inter�t in the Property, u�n Lender's request Bonower shall prompUy furnish to Lender receipts
<br />evidencing these payments.
<br />If Borrower fai]s to make these payments or the payment� required by paragraph 2, or fails to perform any other
<br />covenants and agreements contained in tivs Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender' s rights in the Ptoperty (such as a proceeding in bankruptcy, for condemnation ot 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
<br />rights in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />A� amounts disbursed by Lender under this paragraph shall become an addirional debt of Borrower and be
<br />seciued by this Secutity Instrument These amounts shall bear interest from the date of disbursement at the Note rate,
<br />and at the option af Lender shall be immediately due and payable.
<br />Bortower shall PromPt1Y discharge any lien wluch has priority over this Security Instrument unless Borrower:
<br />(a) agrees in writing to the payment of the obligation sec�ued by the lien in a manner acceptable to Lender; (b) wntests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's
<br />opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to flvs Security Instrument If Lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within
<br />10 days of ihe giving of notice.
<br />& Fees. Leader may collect fees and charges authorized by the Secretary.
<br />9. Grounds for Acceleration of Debt
<br />(a) Defanl� Lender may, except as limited by regulations issued by the Secretary in the case of payment
<br />defaults, require immediate payment in full of all sums sec�ued by this Security Insfimient ifi
<br />(i) Borrower defaults by fa'1'ng to pay in full any monthlY PaYment required by this Security
<br />Instrument prior to or on the due date of the neact monthly payment, or
<br />(ri) Bortower defaults by failing, for a period of thirry days, to perform any other obligations
<br />contained in Uus Security Instrument
<br />(b) Sale Without C�edit ApprovaL I.ender shall, ifpermitted by applicable law (including se,ction 341(cn
<br />of the Garn-St Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />approval of �e Sectetary, reqvire immed�ate Pay�nt in full of all s�s s�aed by this Security In�rument iF
<br />(i) All or part of the Propetty, or a beneficial interest in a lrust owning all or pazt of the Property is
<br />sold or otherwise transferred (other than by devise or descent), and
<br />(ri) The Property is not occupied by the pwchaser or grantee as his or her principal residence, or the
<br />purchaser or grantee does so occupy the Property, but his or her credit has not been approved in
<br />accordaace with the re�rirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full,
<br />but I.ender does �t reyuire such payments, I.ender dces �t waive its rights with respact to subsequent eve�s.
<br />(c� Regalaflons af HUD Secretary. In many circumstanc� regulations issued by the Secretary will limit
<br />Lender' s rights, in the case of payment defaults, to requite immediate payment in full and foreclose if not
<br />FHA N�RASKA D� OF TRUST - MERS Da�fegrc �
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