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201200039
<br />one or more of the following f'orms, as selected by Lender: (a) cash; (b) money order; (c) certitied check, bunk check,
<br />treasurer' s check or cashier' s check, provided any such check is drawn upon an institution whose dcposits arc insured
<br />by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
<br />Payn►ents are deemed reccived by Lender when received at the location designated in thc Note or at such other
<br />location as may be designated by Lender in accordance with the notice provisions in Section I5. Lender may return
<br />any payment or partial payment if the payment or partial payments are insufficient to bring the Loan currcnt. Lender
<br />may accept any payment or partial �ayment insufficient to bring the Loan current, �vithout waiver oi' any rights
<br />hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
<br />obligated to apply such payments at the tinte such payments are accepted. If each Periodic Payment is applied as of
<br />its scheduled due date, then Lender ne�d not pay interest on unappiied funds. Lender may hold such �mapplied funds
<br />until Borrower makes payment co bring the Loan current. !f I3�rrower does not do so within a reasonable period of
<br />time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be
<br />applied to the outstanding principal balance under the Note inunediate(y prior to forec;losure. No offset or claim
<br />which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due
<br />under the Note and this Security Instrument or perlorming the covenants and agreements secured by this Security
<br />Instrument.
<br />2. Applicafion of Payments or Proeeeds. Except as otherwise describcd 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 sha(1 be applied first to tate charges, second
<br />to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
<br />Il' Lender receives a payment from f3on•ower ior a delinyuent Periadic Payment which includes a sufficient
<br />amount to pay any late charge due, the payment may be applied to the dclinquent payment and the late charge. If
<br />more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrawer to Yhe
<br />repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that
<br />any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may
<br />be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment chargcs and then
<br />as described in the Notc.
<br />Any application of payments, insurancc proceeds, or Miscellaneous Proceeds to E�rincipal due under the Note
<br />shall not extend or postpone the due datc, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on thc day Periodic Payments are due imder the
<br />Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due 1or: (a) tases and
<br />assessmtnts and other items which can attain priority over this Security Instrument as a lien or encumbrance on t(le
<br />Property; (b) leasehold payments or ground rents on the Property, i9' any; (c) premiums l'ar any and all insurance
<br />required by Lender under Section 5; and (d) Mortgagz Insurance premiums, iF any, or any sums payable by Borrower
<br />to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the 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, Fecs, and Assessments, if any, bc escrowcd by E3orrower, and such dues, fees and
<br />assessments shall be ao Escrow Item. Bon•ower shall promptly Furnish to Lender all notices ol' amounts to be paid
<br />under this Section. 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 Items. Lender may waive E3orrower's obligation to pay to Lender
<br />Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver,
<br />Borrower shall pay directly, �vhen and where payable, the amounts due ior any Escrow Items for which payment of
<br />Funds has been waived by Lender and, if Lender reyuires, shall furnish to Lender receipts evidcncing such payment
<br />within such time period as Lender may requirc. Borrower's obligation to make such payments and to provide rcceipts
<br />shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase
<br />"covenant and agreemenY' is used in Section 9. [f Borrower is obligated to pay Escrow [tems directly, pursuant to
<br />a waiver, and &�rrower fails to pay the amo�mt due for an Escrow Item, Lender may exercise its rights undcr Section
<br />9 and pay sucl� amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount.
<br />Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section
<br />15 and, upan such revocation, E3orrower 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, collcct and hold Funds in an amount (a) sutlicicnt to pcnnit Lendee to apply the Funds
<br />at the tinie specified under RESPA, and (b) not to exceed the maximum an�ount a lender can require under RESPA.
<br />Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures
<br />of future Escrow [tems or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumcntality, or
<br />entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federa( Home Loan
<br />Bank. Lender shall apply the Funds to pay the Lscrow Items no later than the time speciCed under RESPA. Lender
<br />shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying
<br />the Escrow Items, unless Lendcr pays F3orrower interest on the Funds and Applicable Law pennits Lender to make
<br />such a charge. Unless an agreement is made in wriling or Applicable Law requires interest to be. paid on the F�mds,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree
<br />in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an
<br />annual accounting of the Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as detined under RESPA, Lcnder shall account to Borrower far
<br />the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined tmder RESPA,
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac UPIIFORM INSTRUMENT DocMagic�
<br />Form 3028 1/01 Page 3 of 11 www.docmagic.com
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