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<br />In the event of foreclosure of this Security Instr�ent or oth� hansfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and inter�st of Borrower ia snd to iati�uanc� policies in force shall pass to the purchaser.
<br />S• Occupancy, Preservatlon, Maintenance and Protectlon of the Property; Borrower's Loan AppllcaHon;
<br />Leaseholds. Bonower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution of Hvs Security Instnmient (or witrrin sixty days of a later sale or transfer of the Property)
<br />and shall continue to occupy the Property as $ortower's principal residence for at least one year after the date of
<br />occupancy, unless Lender determines tl�at requirement will cause undue hardship for Borrower, ar unles.c extenuating
<br />circumstances exist which are beyond Bonower's control. Bottower shall norify Lender of any eactenuaYing
<br />circumstances. Borrower shall not commit waste or deslroy, damage or substantially change the Property or allow
<br />the Properiy to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is
<br />vacant or abaadoned or the losa is in defautt Lender may take teasonable action to protect and presetve such vecant
<br />or abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave
<br />materially faLge or inaccurate information or statements to Lender (or failed to provide Lender witfi any materiat
<br />information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br />concerning Borrower' s occupancy of the Properiy as a principal residence. If this Security Instrument is on a
<br />leacehold, Bonower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee title shall ttot be merged unless Lender agrees to the merger in writing.
<br />6. CondemnaHon. The proceeds of any awazd or claim for damages, direct or consequential, in coanection
<br />with any condemnation or othet taldng of any part of the Ptoperty, or for conveyance in place of condemnation, aze
<br />hereby assigned and shall be paid to Lender to the exteat of the full amount of the indebtednes.s thaY remains uapaid
<br />under the Note and this Security Instrumept. Lender shall apply such proceeds to the reduction of the indebtedness
<br />under the Note and Uvs Security Instrument, first to any delinquent amounts applied in the order provided in
<br />paragraph 3, and then to prepayment of principa�. Any application of tha pcoceeds to ihe principal shall not extend
<br />or postpone the due date of the monthly payments, which aze referred to in pazagaph 2, or change the amount of such
<br />payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Securiry Instrumeat shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rightv in the Property. Borrower shall pay a11
<br />governmental or municipal chazges, Snes and impositions that are not included in paragraph 2. Bortower shall pay
<br />these obligations on time direcUy 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 Borrower shall promptly furnish to Lender receipts
<br />evidettcing these payments.
<br />If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perform any other
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Properiy (such as a proceeding in banlffuptcy, for condemoafion or to enforce laws or
<br />regulations), then Leader may do and gay whatever is necescary to protect the value of the Property and Lender's
<br />rights in the Property, including payment of faxes, hazard insurance and other items mentioned in pazagraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Bonower and be
<br />secured by this Security Instrument. These amounts shall hear interest from the daYe of disbursement at the Note rate,
<br />and at the oprion of Lender shall be immediately due and payable.
<br />Borrower shall prompUy discharge any lien which has priority over tfris Security Instrument unless Bonower:
<br />(a) agre�s in writing to the paymeat of the obligation secured by the lien in amanner acceptable to Lender; (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 ogerate 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 tUis Security Instrument If Lender determines that any part of the
<br />Property is subject to a lien wlrich may attain priority over this Security Tnstrument, Lender may give Bonower a
<br />notice identifying the lien. Boaower sha11 satisfy the lien or take one or more of the acrions set forth above within
<br />10 days of Yhe giving of notice.
<br />& Fe�. Lender may collect fees and chazges authorized by the Secretary.
<br />9. Grounds for Acceleraflon of Debt
<br />(a) Defaalt Lender may, except as limited by regulations issued by the Secretary in the case of payment
<br />defaults, reqirire immediate payment in full of all sums secured by this Security Instrument if:
<br />(i) Borrower defaiilts by failing to pay in full any monthly payment required by this Security
<br />Instrument prior to or on the due date of the next monthly payment, or
<br />(n) Borrower defaults by failing, for a period of thirty days, to perform any other obligations
<br />contained in this Secimty Instrument
<br />(b) Sale Witho� Credit Approval. Lender shall, ifpermitted by applicable law (including secrion 341(cn
<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 Ure Se�r�ary, require itr�ediate paymeat in full of all siuns s�aed by dris Sacurity Instrument iF
<br />(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is
<br />sold or otherwise transferred (other than by devise or descent), and
<br />(ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the
<br />purchaser or grantee dces so occupy the Properiy, but his or her credit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occiu that would permit Lender to require imatediate payment in full,
<br />but I.ender does not require such Paymeots, I.ender does �t waive its rights with respact to subsequ�t events.
<br />(d) Regalatlons of HUD Secretary. In many circamstances regulations issued by the Secretary will limit
<br />Lender's rights, in the case of payment defaults, to require immediate payment in fu11 and fore�lose if not
<br />FHA NEBI7ASKA D� OF TRUST - MEIi,S
<br />NmOTLFHA OS/23/11 Page 3 oi 7 W � eg�
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