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20�10554�
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />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 Insurance. Bonower 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 insurance shall be maintained in the amounts and for the periods that Lender requires. Bonower
<br />shall also insure a11 improvements on the Property, whether now in existence or subsequently erected, against loss by
<br />floods to the e�ctent required by the Secretary. All insurance shall be carried with companies approved by Lender. The
<br />insurance policies and any renewals shall be held by Lender a.nd shall include loss payable clauses in favor of, and in a
<br />form acceptable to, Lender.
<br />In the event of loss, Borrower sha11 give Lender immediate notice by mail. Lender may make proof of loss if not made
<br />promptly by Borrower. Ea.ch insurance company concerned 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 this Security Instrument,
<br />first to any delinquent amounts applied in the order in Pazagraph 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 />excess insivance proceeds over an amount required to pay a11 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 tlus Security Instrument or other transfer of title to the Properly that extinguishes the
<br />indebtedness, all right, title and interest of Bortower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Properiy; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, esta.blish, and use the Properly 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 Bonower'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. Borrower shall notify Lender of any extenuating circumstances. Borrower shall
<br />not commit waste or destroy; damage or substa.ntially change the Property or allow the Property to deteriorate, reasonable
<br />wear and tea.r �cepted. Lender may inspect the Properiy if the Property is vacant or abandoned or the loau 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 Borrower, during the loan application process, gave materially false or inaccurate information or statements 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, representations concerning Borrower's occupancy of the Properly as a principal residence.
<br />If this Security Instrument is on a leasehold, Bonower shall comply with the provisions of the lease. If Borrower acquires
<br />fee title to the Properly, 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 cla,im for damages, direct or consequential, in connection with a.ny
<br />condemnation or other ta.king of a.tryy paxt 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 that remains unpaid under the Note and
<br />tlus Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note a.nd this
<br />Security Inshument, first to any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment
<br />of principal. Any application of the proceeds to the principal sha11 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 />a.mount required to pay all outstanding indebtedness under the Note and this Security Insttument shall be paid to the
<br />entity legally entitled thereto.
<br />HCFG-00703
<br />FHA Deed of Truat-NE
<br />VMP�
<br />Wolters Kluwer Flnancial Services
<br />201107204.0.0.0.4002J20110224Y
<br />Reviaed 4/96
<br />11l10
<br />Page 3 oT 8
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