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OX119 Elm, 011
<br />LOAN #: 05110831796
<br />if Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum for
<br />the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge
<br />instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a
<br />reasonable amountto be determined by the Secretary. Exceptfor the monthly charge by the Secretary,
<br />these items are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to
<br />exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate
<br />Settlement Procedures Act of 1974,12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR
<br />Part 3500, as they may be amended from time to time ( "RESPA "), except that the cushion or reserve
<br />permitted by RESPAfor unanticipated disbursements or disbursements before the Borrower's payments
<br />are available in the account may not be based on amounts due for the mortgage insurance premium.
<br />Ifthe amounts held by Lenderfor Escrow Items exceed the amounts permitted to be held by RESPA,
<br />Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may notify the
<br />Borrower and require Borrower to make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional securityforall sums secured by this Security Instrument.
<br />If Borrower tenders to Lenderthefull payment of all such sums, Borrower's accountshall be credited with the
<br />balance remaining for all installment items (a), (b), and (c) and anymortgage insurance premium installment
<br />that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess
<br />funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender,
<br />Borrower's accountshall becreditedwith any balance remaining for all installmentsfor items (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender
<br />as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly
<br />charge by the Secretary instead of the monthly mortgage insurance premium;
<br />Second, to anytaxes, special assessments, leasehold payments orground rents, andfire, flood and
<br />other hazard insurance 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. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies,
<br />including fire, forwhich Lender requires insurance. This insurance shall be maintained in the amounts and
<br />forthe periods that Lender requires. Borrowershall also insure all improvements on the Property, whether now
<br />in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All
<br />ins u ran ceshall be carried with companies approved by Lender. The insurance policies and any renewals shall
<br />be held by Lender and shall include 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
<br />loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and
<br />directed to make paymentfor such loss directly to Lender, instead of to Borrower and to Lender jointly. All
<br />or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction
<br />of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied
<br />in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the
<br />damaged Property. Any application of the proceeds to the principal shall not extend or postpone the due
<br />date ofthe monthly paymentswhich are referred to in paragraph 2, or changethe amountofsuch payments.
<br />Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the
<br />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
<br />extinguishes the indebtedness, all right, title and interestof Borrowerin and to insurance policies inforce
<br />shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's
<br />principal residence within sixty days after the execution of this Security Instrument (or within sixty days
<br />of a later sale or transfer of the Property) and shall continue to occupy the Property as Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender determines that
<br />requirementwill cause undue hardship for Borrower, or unless extenuating circumstances existwhich
<br />are beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances.
<br />Borrower shall not commitwaste or destroy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the
<br />Property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect
<br />and preserve such vacant or abandoned Property. Borrower shall also be in default if Borrower, during
<br />the loan application process, gave materially false or inaccurate information or statements to Lender (or
<br />failed to provide Lender with any material information) in connection with the loan evidenced by the
<br />Note, including, but not limited to, representations concerning Borrower's occupancy of the Property
<br />as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the
<br />FHA Nebraska Deed of Trust -4 /s6 Initials: Zg--19-
<br />Online Documents, Inc. Page 3 of 7 NEEFHADE 1108
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