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<br /> BORROWER COVENANTS that Bonower is lawfully seised of the estate hereby conveyed and has the right to
<br /> gr�mt and convey the Property and that the Property 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 encumbrances
<br /> of record.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with
<br /> limited vaziations 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 Ptincipal and Interest; prepayment and Late Charges. Bonower shall promptly pay when due the
<br /> principal of and interest on the debt evidenced by the Note and any prepayment and late chazges due under the Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by I.ender, Bonower shall pay
<br /> to Lender on the day monthly payments aze due under the Note, until the Note is paid in full, a sum ("Funds") for:
<br /> (a) yeazly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)
<br /> yeazly leasehold payments or ground rents on the Property, if any; (c) yeazly hazard or property insurance premiums;
<br /> and (d) yearly flood insurance premiums, if any. These items are called "Escrow Items". Lender may, at any time,
<br /> collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan
<br /> may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as
<br /> amended from time to time, 12 U.S.C.§ 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets
<br /> a lesser amount. If so,Lender may,at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br /> Lender may estimate the amount of Funds due on the basis of cunent 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 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
<br /> to pay the Escrow Items. L,ender may not charge Borrower for holding and applying the Funds, annually analyzing
<br /> the escrow account, or verifying the Escrow Items, unless Lender pays Bonower interest on the Funds and applicable
<br /> law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time chazge for an
<br /> independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law
<br /> provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be
<br /> required to pay Bonower any interest or earnings on the Funds. Bonower and Lender may agree in writing,however,
<br /> that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
<br /> Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br /> Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed ihe amounts permitted to be held by applicable law, Lender shall account to
<br /> Bonower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held
<br /> by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing,
<br /> and, in such case Bonower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make
<br /> up the 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
<br /> any Funds held by L,ender. If, under paragraph 23, Lender shall acquire or sell the Property, Lender, prior to the
<br /> acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit
<br /> against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> pazagraphs 1 and 2 shall be applied: first,to any prepayment chazges due under the Note; second, to amounts payable
<br /> under pazagraph 2; third, to interest due; fourth, to principal due; and last, to any late chazges due under the Note.
<br /> 4• Charges; Liens. Bonower 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.
<br /> Bonower shall pay these obligations in the manner provided in paragraph 2,or if not paid in that manner, Bonower
<br /> shall pay them on time directly to the person owed payment. Bonower shall promptly furnish to Lender all notices
<br /> of amounts to be paid under this paragraph. If Bonower makes these payments directly, Borrower shall promptly
<br /> furnish to Lender receipts evidencing the payments.
<br /> Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br /> agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests
<br /> in good faith the lien by,or defends against enforcement of the lien in,legal proceedings which in the Lender's opinion
<br /> operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory
<br /> to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is
<br /> subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying
<br /> the lien. Bonower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving
<br /> of notice. �
<br /> 5. Ha7ard or Property Insurance, Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazazds included within the term "extended coverage" and any other hazards,
<br /> including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br /> and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower
<br /> subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage
<br /> described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in
<br /> accordance with pazagraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires, Bonower shall promptly give to
<br /> Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to
<br /> the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing,insurance proceeds shall be applied to restoration or repair
<br /> of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened.
<br /> NEBRASICA-Single Family-UNIPpRM INS1'RUMENT
<br /> Document Systemt,Irc.(800)649-1362 Page 2 of 6
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