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<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited
<br /> variations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> UNIFORM COVENANTS. Bonower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall prompdy pay when due the
<br /> principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to
<br /> Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly
<br /> taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold
<br /> payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood
<br /> insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (fj any sums payable by Borrower to
<br /> Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These
<br /> items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum
<br /> amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real
<br /> Estate Setdement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless
<br /> another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an
<br /> amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and
<br /> 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 (including
<br /> Lender,if Lender is such an institution)or in any Federai Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br /> Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br /> verifying the Escrow Items, unless Lender pays Borrower interest on the,Funds and applicable law permits Lender to make
<br /> such a charge. However, Lender may require Bonower to pay a one-time charge for an independent real estate tax reporting
<br /> service used by Lender in connection with this loan,unless applicable law provides otherwise. Unless an agreement is made or
<br /> appiicable law requires interest to be paid,Lender shall not be required to pay Bonower any interest or earnings on the Funds.
<br /> Borrower and Lender may agree in writing,however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br /> without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
<br /> debit to the Funds was made.The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for
<br /> the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any
<br /> time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and,in such case Borrower
<br /> shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than
<br /> twelve monthly payments,at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall prompdy refund to Borrower any Funds
<br /> heid by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of
<br /> the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by
<br /> this Security Instrument.
<br /> 3.Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1
<br /> and 2 shall be applied: first,to any prepayment charges due under the Note; second,to amounts payable under paragraph 2;
<br /> 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 Property
<br /> which may attain priority over this Security Instrument, and leasehoid payments or ground rents, if any. Borrower shall pay
<br /> these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time
<br /> direcfly to the person owed payment. Borrower shall prompfly furnish to Lender all notices of amounts to be paid under this
<br /> paragraph. If Borrower makes these payments direcdy, 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 Borrower: (a) agrees in
<br /> writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)contests in good faith the lien
<br /> 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, Lender 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 Property
<br /> insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. 'This insurance shall be maintained in the amounts and for the periods that
<br /> Lender requires. The insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval
<br /> Single Family FNMA/FHLMC UNIFORM INSTRUMENT FORM 3028 09l90(Page 2 of 6 Pages)
<br /> NEBRASKA ECes9L Rev.o9/O9/9i
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