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<br /> Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance
<br /> premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to
<br /> exceed the maximum amount a Lender for a federally related mortgage loan may require for Borrower's escrow account under
<br /> the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et seq.
<br /> ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold
<br /> Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current
<br /> data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay
<br /> the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br /> account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender
<br /> to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax
<br /> reporting service used by I.ender in connection with this loan, unless applicable law provides otherwise. Unless an agreement CS�
<br /> is made or applicable law requires interest to be paid, Lender shall not be required to pay Bonower any interest or earnings on O�
<br /> the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to �
<br /> Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for �
<br /> which each debit to the Funds was made. The Funds are pledged as additional security for a11 sums secured by tlus Secunty �
<br /> Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to �
<br /> Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Q
<br /> Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in N
<br /> such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the
<br /> deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br /> Funds held by Lender. If, under paragraph 21, Lender sha11 acquire or sell the Property, Lender, prior to the acquisition or
<br /> sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums
<br /> secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 sha11 be applied: first, to any prepayment charges due under the Note; second, to amounts payable under
<br /> paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br /> Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower
<br /> shall pay these obligations in the mauner provided in paragraph 2, or if not paid in that mauner, Borrower shall pay them on
<br /> time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br /> this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br /> payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a) agrees
<br /> in writing to the payment of the obligation secured by the lien in a mamier acceptable to Lender; (b) contests in good faith the
<br /> lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or(c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br /> this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over
<br /> this Security Instrument, L.ender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or
<br /> more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br /> floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br /> which shall not be unreasonably withheld. If Bonower fails to maintain coverage described above, Lender may, at Lender's
<br /> option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br /> of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br /> I.ender. Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds sha11 be applied to restoration or repair of
<br /> the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br /> restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br /> applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br /> Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has
<br /> offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the
<br /> Property or to pay sums secured by this Security Instruxnent, whether or not then due. The 30-day period will begin when the
<br /> notice is given.
<br /> Unless L.ender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisition shall pass to L.ender to the extent of the sums secured by this Security
<br /> Instrument immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after
<br /> the execution of this Security Instrument and shall continue to occupy the Property as Bonower's principal residence for at
<br /> least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br /> withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage
<br /> or impair the Property, a11ow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any
<br /> forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in
<br /> forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security
<br /> interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to
<br /> be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the
<br /> Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Bonower
<br /> shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or
<br /> statements to Lender(or 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 as a principal residence.
<br /> If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires
<br /> fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br /> NEBRASKA-Single Family Page 2 of 5 Fotm 3028 9-90
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