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<br />covered by this Security Instrument All of the foregoing is referred to in Uris Security Instrument as the "Property."
<br />Borrower understands and agr�s that MERS holds only legal tiUe to the interests grantedby Bonower in this Security
<br />Inscrumeat; but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender' s successors
<br />and assigns) has the right: to exercise any or all of those interesis, including, but not limited to, the right to foreclose
<br />and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling
<br />this Security Insbrument
<br />BORROWER COVENANTS that Borrowet is lawfully aeised of the estate hereby comeyed and hes the right to
<br />grant and convey the Properiy and that the Property is unencumbered, except for encumbrances of record Bonower
<br />warrants and will defend generally the litle to the ProPeriy against all claims and demands. subject to any
<br />encvmbrances of re�cord
<br />THIS SECURTI'Y INSTRUMIIVT combines uniform covenants for national use and non-uniform covenants with
<br />limited variations by jurisdicrion to constitute a imiform security inahvment covering real property•
<br />UNIFORM COVENANTS. Boaower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal, Interest and I.atc Charge. Borrower shall pay when due the principal o� aad
<br />interest on, the debt evidenced by the Note aad late charges due under the Note.
<br />2. Monthly Payment of Tages, Insmartce, and Other Charges. Bortower shall include in each monUily
<br />payment,"together with the principal and interest as set forth in the Note and any late charges, a simm for (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br />�oP�Y, ���) Premiums for insurance required under paragraph 4. In any year in which the Lender must pay a
<br />mortgage insivance premium to the Secretary of Housing and Urban Development ("Secretary"), or in any yeat' in
<br />wlrich such premium would have been requited if Lender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary,
<br />or (ri) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "Escrow Itema" and the sums paid to Lender are called "Esctow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amouat that may be required for Borrower' s esctow account imder the Real Estate Setftement Pr�a�
<br />Act of 1974, 12 U.S.C. §2601 et sea. and implementing regulations, 24 CFR Part 3500, as they may be amended
<br />&om time to time ("RESPA"), except that the cushion or reservepermitted by RESPA for unan6cipated disbursemeats
<br />or disbursements before the Bonower' s payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />If the amoimts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Bonower for che excess fimds as required by RESPA. If the amoimts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br />up the shorhege as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums seciued by this Security Instrumen� If
<br />Bonower tenders to Lender the full payment of all such sim�s, Bonower' s account shall be credited with the balance
<br />rP,,,a;n;ng for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refimd any excess funds to Borrower.
<br />Immediately prior to a foreclosure sale of the Praperty or its acquisition by Lender, Borrower's account shall be
<br />credited with aay balance remaining for all installmentt for items (a), (b). and (c)•
<br />3. Applieatlon of Paymenta All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIltST. to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />ins�ance premiums, as required;
<br />THIItD. to interest due under the Nate;
<br />FOURTH, to amorti�tion of the principal of the Note; and
<br />FIFTH. to late chazges due imder the Note.
<br />4. N�Sre, Flood and Other Hazard Insnrance. Bonower shall iasure all improvements on the Property,
<br />whethet now in existence or subsequently erected, against any ha�ards, casualties, and contingencies, including fue,
<br />for wlrich Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. Bonower shall also insure all improvements on the Property, whether now in eacistence or
<br />subsequentiy erected, against loss by floods to the extent required by the Secretary. All insivance shall be carriedwith
<br />companies approved by I.ender. The insia�ance policies and any renewals shall be held by Lender and shall include
<br />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 loss if not
<br />made promptly by Borrower. Each insurance company concerned is hereby suthorized and directed to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender joinUy. All or any part of the insurance
<br />pr� may be applied by Lender, at its option, either (a) W the reduction of the indebtedness imder the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds w the
<br />principal shall not extend or postpone the due date of the monthly payments wirich are referred W in paragraph 2, or
<br />change the amount of such payments. Any excess 'v�aurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Inslrumeat ehall be paid to the entity legally entitled thereto.
<br />FHA N�RASKA D� OF TRUST - MERS
<br />NmOTZ.FHA 05/23H 1 Page 2 of 7 w�d�n agJc.mm
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