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Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />�0��0524�
<br />4. Fire, Flood and Other Hazard Insurance. 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 Lender
<br />requires insurance. This insura.nce shall be maintained in the axnounts and for the periods that Lender requires. Borrower
<br />shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by
<br />floods to the extent required by the 5ecretary. All insurance shall be cartied with companies approved by Lender. The
<br />insurance policies and any renewals sha.11 be held by Lender and shall include loss payable clauses in favor of, and in a
<br />form acceptable to, Lender.
<br />In the event of loss, Bonower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
<br />promptly by Borrower. Each insurance company concemed is hereby authorized and directed to make payment for such
<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 reduction of the indebtedness under the Note and tlus Security Instrument,
<br />first to any delinquent amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the
<br />restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not extend or postpone
<br />the due date of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any
<br />�cess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security
<br />Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other tra,nsfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Bonower in and to insurance policies in force sha.11 pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, esta.blish, and use the Property as Borrower's principal residence within sixty days
<br />after the execution of this Security Inshument (or within sixty days of a later sale or transfer of the Property) a,nd shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless
<br />Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist
<br />which are beyond Borrower's control. Bonower shall notify Lender of any extenuating circumstances. Bonower shall
<br />not commit waste or destroy, damage or substantially cha.nge the Property or allow the Property to deteriorate, reasonable
<br />wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default.
<br />Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Borrower sha11 also be in
<br />default if Bonower, during the loan application process, gave materially false or inaccurate information or statemenLs to
<br />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, representa,tions concerning Borrower's occupancy of the Property as a principal residence.
<br />If this Security Instrument is on a leasehold, Borrower sha11 comply with the provisions of the lease. If Bonower acquires
<br />fee title to the Property, the 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 consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned
<br />and shall be paid to Lender to the extent of the full amount of the indebtedness tha.t remains unpaid under the Note and
<br />this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this
<br />Security Instrument, first to any delinquent amoun�ts applied in the order provided in Paragraph 3, and then to prepayment
<br />of principal. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br />payments, which are referred to in Paragraph 2, or change the amount of such payments. Any excess proceeds over an
<br />amount required to pay all outsta,nding indebtedness under the Note and this Security Insttument sha11 be paid to the
<br />entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower sha.11pay all governmental
<br />or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations
<br />HCFG-00703
<br />FHA Deed of Trust NE
<br />VMP�
<br />Wolteis Kluarer Financfal Servicea
<br />201107114.0.0.0.4002-J20110224Y
<br />Revised 4(96
<br />11/70
<br />Page 3 of 8
<br />6 1 1
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