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<br />covered by this Security Instrumenk All of the foregoing is referred to in this Secvrity Instrument as the "Property."
<br />Borrower imderstands and agrees that MERS holds only legal tiUe to the interests granted by Borrower in this Seciuity
<br />Instrument; but, if neceasary to comply with law or custom, MERS (as notninee for Lender and Lendet' s successors
<br />and assigns) has the right: to exetcise any or all of those interests, 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 Sec�aity Instrument
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Properiy and that the Properry is unencumbered, except for encumbrances of record. Borrower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record
<br />'I'�IIS SECURITY INST'RUMENT combines uniform covenants for national use and non-uniform covenants with
<br />limited variations by jurisdic6on to constitute a uniform security instrument covering real property
<br />UNIFORM COVENANTS. Borrower and Lender coveaant and agree as follows:
<br />1. Payment of Principal, Interest and Late C6arge. Borrower shall pay when due the principal of, and
<br />interest on, the debt evidenced by the Note and late charg� due under the Note.
<br />2. Mont6ly Payment of Tases, Insurance, and Other Charg�. Borrower shall include in each monthly
<br />payment, together with the principal and interest as set forth in the Note and any late chazges, a sum for (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or groimd rents on the
<br />Properiy, and (c) premiums for insurance required undec paragraph 4. In any year in wlrich the Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in
<br />w}rich such premium would have been required if Lender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a sum for the annual mortgage insurance premiwn to be paid by Lender to the Secretary,
<br />or (ri) a monttily charge instead of a mortgage insivance 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 Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at atry time, collect and hold amounts for Escrow Items in an aggre�aate amount not to eacceed the
<br />maxim� amount that may be required for Borrower's escrow accoimt under the Real Estate SetNement Procedures
<br />Act of 1974, 12 U.S.C. §2601 et sea. and implementing regulations, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that the cushion or reservepermitted by RESPA for unanricipated disbursements
<br />or disbursements before the Borrower's payments are available in the accoimt may not be based on amounts due for
<br />the mortgage insurance prPmnm+
<br />If the amoimts held by Lender for Escrow Items exceed the amo�mts permitted to be held by RESPA, Lender shall
<br />account to Barrower for the excess funds as required by RESPA. If the amoimts af funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify tf►e Borrower and require Borrower to make
<br />up the 'shortage as permitted by RESPA.
<br />The Escrow Funds ate pledged as additional security for all sums secised by this Sec�sity Instrumen� [f
<br />Borrower tenders to Lender the full payment of all such sums, Borrower' s accotmt shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premiim� installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall prompUy refimd any excess fuads to Borrower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's accoimt shall be
<br />credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments imder paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIRST. to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly chazge by
<br />the Secretary instead of the monthly mortgage iasurance premimn;
<br />SECOND. to any taxes, special assessments, leasehold paymeats or groimd rents, and 5re, flood and other hazard
<br />insurance premiums, as required;
<br />THIItD. to interest due tmder the Note;
<br />FOUR1Ti. to amortization of the principal of the Note; and
<br />FIFTH. to Iate chatges due under the Note.
<br />4. FSm, Flood and Other Ha�ard Inanrance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequeaUy erected, aga�st anY hazards, casua�ties, and contingencies, including fire,
<br />for which Lender requires insivance. This insisance shall be maintained in the amoimts and for the periods that
<br />Lender requses. Borrower shall also insiue all improvements on the Property, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All iasurance shall be carried with
<br />companies approved by Lendet. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable W, 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 ins�uance company concerned is hereby suthorized and directed to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender joindy. All or any part of the �n��*++n�
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness imder the Note and
<br />this Sec�uity Instrumant, 5rst 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 to the
<br />principal shaU not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amoimt of such payments. tlny exce,ss insiaance proceeds over en amount required to pay all outstanding
<br />indebtedn�s imder fhe Note and this Seciuity Instrimment a6a11 be paid to the entity legally entitled thereto.
<br />FHA N�RASKA D� OF TRUST - MERR Durd�eg(o�
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