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<br />In �e eve�t of foreclos�ue of this Security Inslnuneat or otha transfer of title to tr�e Properiy that extinguishes the
<br />indebtadn�ss, all right, title and 'mt�est of Borrower in and to insurance policies in force shall pa� to the purchaser.
<br />5. Occnpancy, PreservaHon, Maintenance and ProtecHon of U►e Property; Borrower's Loan Appllcation;
<br />Leaseholda Bonower shall occupy, establish, and use the Property as Borrower' s principal residence within sixty
<br />days after the execukion of this Secvrity Instrument (or within sixty days of a later sale or transfet of the Property)
<br />and shall continue to occupy the Properiy as Bonower's principal residence for at least one year after the date of
<br />occupancy, unless Lender detsrmines tUat requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist wlrich are beyond Bonower's controL Bonower shall notify Leader of any extenuating
<br />circumstances. Borrower sha11 not commit waste or desbroy, damage or substantially change the Propetty or allow
<br />the Property ta deteriorate, reasonable wear and teaz 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 Borrower, during the loan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />information) in connection with the loan evidenced by the Note, including, but not limited ta, representations
<br />concerning Borrower' s occupancy of the Property as a principal residence. If Uus Security Instrument is on a
<br />leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Properry, the
<br />leasehold and fee 6fle shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnaflon. The proceeds of any award or claim far damages, direct or consequen6al, in connection
<br />with airy condemnation or other talang of any part of the Properry, or for conveyance in place of condemnation, are
<br />hereby assigned and shall be paid to Lender to the extent of the full amoimt of the indebtedneas that remains impaid
<br />under the Note and this Seasity Instrument Lender shall apply such proceeds to the reduction of the indebtedness
<br />under the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in
<br />paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend
<br />or postpone tt►e due date of the monthly payments, wlrich are refened to in paragraph 2, or change the amount of such
<br />payments. tlny excess proceeds over an amount recprired to pay all outstanding indebtedt►ess under the Note and this
<br />Security Instrument shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and ProtecHon of Lender's Rights in the Property. Borrower sl�all pay all
<br />govemmental or municipal charges, fines and imnositions that are not included in paragraph 2. Bonower shall pay
<br />these obligations on time direcfly to the entity wlrich is owed the payment. If failure to pay would adversely affect
<br />Lender's interest in the Property, upon Lender's request Bonower shall promptly furnish to Lender receipts
<br />evidencing these payments.
<br />If Bonower fails to make these payments or the payments required by paragraph 2, or fails to petform any other
<br />covenants and agreements contained in Uvs S�ttity i„cm,,,,�t, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Properiy (such as a proceeding in banla�uptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value af the Property and Lender's
<br />rights in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amoimts disbursed by Lender undet this paragraph shall become an additional debt of Borrawer and be
<br />secured by Uvs Security Instruwen� These amounts st�all bear interest &om the date of disbursement at the Note rate,
<br />and at the option of Lender shall be immediately due and payable.
<br />Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower:
<br />(a) agrees in writing to the payment of the obligation sec�ned by the lien in a manner acceptable to T.ender; (b) contests
<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 liea to this Security Instrument If Lender determines that any part of the
<br />Properiy is subject to a lien wlrich may attain priority over this Security Instrument, Lender may give Bonower a
<br />notice identifying the lien. Bonower shall satisfy the lien or take one or more of the actions set forth above within
<br />10 days of the giving of nolice.
<br />8. Feea Lender may collect fezs and charges authorized by the Secretary.
<br />9. Gmands for Acceleraflon of Debt
<br />(a) Defanit 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 secured by tUis Security Instrument if:
<br />(i) Bonower defaults by failing 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) Bonower defaults by failing, for a peciod of thirty days, to perform any other obligations
<br />contained in this Security Instrument
<br />(b) 5ale Wfthout Credit Approval. Lender shall, ifpermitted by applicable law (including section 341(c�
<br />of the Garn-St Germain Depository Instihrtions Act of 1982; 12 U.S.C. 1701j-3(d)) and with the prior
<br />approval of the Secrela�y, re�rire immadiate payment in full of all s�s seaued by this Se�uity Insirument if.�
<br />(i) All or part of the Property, or a beneficial interest in a irust owning all or part of the Property, is
<br />sold or otherwise transfeaed (other than by devise or descent), and
<br />(ii) The Propetty is not occupied by the ptuchacer or grante,e as his or her principal residence, or the
<br />purchaser or grantes dces so occupy the Property, but his or her credit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiven If circumstances occw that would permit Lender to req�ure immediate payment in full,
<br />but I.ender does not require auch paymenL�, I.ender dces �t waive its rights with respact to subsaquent events.
<br />(tn Regulatlons of HUD Secretary. In many circumstances regulations issued by the Sectetary will limit
<br />Lender' s rights, in the case of payment defaults, to require immediatc payment in full and foreclose if not
<br />FHA NEBRASKA D� OF TRUST - MHtB
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