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<br />one ar more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) cerkified check, bank check,
<br />treasurer' s check or cashier' s check, provided any such check is drawn upon an institution whose deposits are insured
<br />by a federal agency, inshumentality, or entity; or (d) Electronic Funds Transfer,
<br />Payments are deemed received by Lender when received at tha location designated in the Note or at such other
<br />location as may be designated by Lender in accordance with the notica provisions in Section I5. Lender may return
<br />any payment or partial payment if the payment or partial payments aze insufficient to bring the Loan current. Lender
<br />may accept any payment or partial payment insufficient to bring the Laan current, without waiver of any rights
<br />hereunder or prejudice ta its rights to refuse such payment or partial payments in the future, but Lender is not
<br />obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of
<br />ita scheduled due date, then Lender need not pay interest on unapplied funds. Lender roay hold such unapplied funds
<br />until Bonower makes payment to bring the Loan current. If Bonower dces not do so within a reasonable period of
<br />time, Lender shall either apply such funds or return them to Barrower. If not applied earlier, such funds will be
<br />applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim
<br />which Bonower tnight have now or in the future against Lender shall relieve Borrower from cnaking paymenis due
<br />under the Note and this Security Inshvment or performing the covenants and agreements secuted by this Security
<br />InstrumenG
<br />2. AppUcaBon of Payments or Proceeds. Except as otherwise described in this Section 2, all payments
<br />accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note;
<br />(b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic
<br />Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second
<br />to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a suf6cient
<br />amount to pay any latc charge due, the payment may be applied to the delinquent payment and tha late charge, If
<br />more than ona Periodic Payment is outstanding, Lender may apply any payment received from Bonower to the
<br />repayment of the Periodic Payments if, and to the extent that, each payment caa be paid in full. To the e�ctent tliat
<br />any excess exists after the payment is applied to the fiill paytaent of one or more Periodic Payments, such excess may
<br />be applied to any late charges due. Voluntary prepayments shall ba applied first to any prepayment charges and then
<br />as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note
<br />shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funda for Escrow Items. Bonower shall pay to Lender on the day Periodic Payments are due under the
<br />Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for; (a) taxes and
<br />assessments and other items which can attain priority over this Secwity Instrument as a lien or encumbrance on the
<br />Property; (b) leasehold payments or ground rentc on the Property, if any, (c) pramiums for any and all insurance
<br />required by Lender under Section 5; and (d) Mortgage Insurance premituns, if any, or any sums payable by Borrower
<br />to Lender in lieu of the payment of Mortgage Insurance premiums in acwrdance with khe provisions of Section 10.
<br />These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require
<br />that Community Association Dues, Fees, and Asse.ssments, if any, be escrowed by Bonower, and such dues, fees and
<br />essessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all nodces of amounts to be paid
<br />under Utis Secdoa Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's
<br />obligation to pay the Funds for any or all Escrow Itema. Lender may waive Borrower' s obligation to pay to Lender
<br />Funda for any or all Escrow Items at any tima. Any such waiver may only be in wridng. In the event of such waiver,
<br />Honower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of
<br />Funds has been waived by Lender and, if Lender requires, shall fur►ush to Lender receipts evidencing such payment
<br />within such time period as Lender may require. Bonower' s obligation to make such payments and to provide receipts
<br />shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />"covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to
<br />a waiver, and Bonower fails to pay the amount due for an Escrow Item, Lender roay exercise its rights under Section
<br />9 and pay such amount and Bottower shall then be obligated uader Section 9 to repay to L.endec any such amount
<br />Lender may revoke the waiver ae to any or all Escrow Items at any time by a notice given in accordance with Section
<br />15 and, upon such revocation, Bonower shall pay to Lender all Funds, and in such amounts, that are then required
<br />under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pernrit Lender to apply the Funds
<br />at the dme specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA.
<br />Lender shall esdmate the amount of Funds due on the basis of current data and reasonable estimates of expenditures
<br />of future Escrow Items or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institudon whose deposits are insured by a federal agency, insuvmentality, or
<br />entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan
<br />Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender
<br />shall not charge Borrower for holding and applying the Funda, annually analyzing the escrow account, or verifying
<br />the Escrow Items, unless Lender pays Borcower interest on the Funds and Applicable Law permits Lender to make
<br />such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,
<br />Lender shall not be required to pay Bonower any interest or earnings on the Funds. Borrower and Lender can agree
<br />in writing, however, that interest shall be paid on khe Funds. Lender shall give to Borrower, withouL charge, an
<br />annual accounting of the Funds es required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Honowar for
<br />the exces,s funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA,
<br />NEBRASKA-3ingle Femlly—Fennle Mae/Freddie Mec UNIFORM INSTRUMFNT p�e$/�� � i
<br />Form 3028 1/01 Page 3 of 11 www.d�nagk.aom
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