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<br />covered by this Security Instrument. All of the foregaing is referred to in this Security Instrument as the "Property."
<br />Borrower understands and agrees that MERS holds only legal title to the interess� granted by Boaower in this Seciuity
<br />Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender' s successors
<br />and essigos) has the right: to exercise any or all of those inter�, including, but not limited to, the right to foreclose
<br />and sell the Properiy; and to take any action required of Lender including, but not limited to, relessing or canceling
<br />this Sec�aity Ins�ent
<br />BORROWER COVENANTS tUat Bonower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Bonower
<br />wanants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record
<br />THIS SECIJRTTY INSTRUMENT combines uoiform covenants for national use and non-imiform covenants with
<br />limited variations by jurisdiction to con.�titute a tmiform security instrument covering real properry.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal o� and
<br />interest on, the debt evidenced by the Note and late charges due imdet the Note.
<br />2. MontLly Payment of Taz�, Insmance, and Other G7targes. 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 grotmd rents on the
<br />Ptoperty, and (c) premiums for insurance reqirired under paragraph 4. In any yeaz in which the Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urban Development ("Secremry"), or in azry year in
<br />wYrich such premium would have been reqirired if Lender still held the Security Instnmment, each monthly payment
<br />shall also include either: (i) a s� for the annual mortgage insivance premium to be paid by Lender to the Secretary,
<br />or (ri) a monthly chatge instead of a mortgage insurance premium if this Security Instrua►ent is held by the Secretary,
<br />in areasonable amount to be detetminedby the Secretary. Except for the monHily charge by the Secretary, these items
<br />aze called "Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at azry time, collect and hold amount� for Escrow Items in an aggregate amoimt not to exceed the
<br />maximum amount that may be required for Bonower' s escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. §2601 et sea, and implementing regt►lations, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that the cushion or resetve permitted by RESPA fot unanticipated disbutsements
<br />or disbursements before the Borrower' s payments ate available in the account may not be based on amotmts due for
<br />the mortgage insurance premiiun.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted w be held by RESPA, Lender shall
<br />accoimt to Borrower for the excess funds as required by RESPA. If the amoimts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may norify the Borrower and require Borrower to make
<br />up the shortage as permitted by RESPA.
<br />The Escrow Funds aze pledged as additional sec�aity for all sums sec�ned by this Security Instrument. If
<br />Bonower tenders to Lender the full payment of a11 such sums, Bonower' s account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refimd any excess funds to Bonower.
<br />Immediately prior to a foreclosiue sale of the Property or its acquisition by Lender, Borrower's accoimt sha11 be
<br />credited with any balance re ;n;ng for all installments for items (a), (b), and (c).
<br />3. Applica8on of Paymenta All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIItST to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the monthly mortgage insurance premi�;
<br />SECOND. to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premi�s, as required;
<br />THIItD, to interest due imdet the Note;
<br />FOURTH, to amortization of the principal of the Note; and
<br />FIFTH, to late charges due imder the Note.
<br />4. I3re, Flood and Other Hazard Insarance. Borrower shall insure a11 improvements on the Property,
<br />whether now in existence or subsequently erected, against any ha�ards, casualties, and contingencies, including fire,
<br />for wlrich Lender requires insurance. This insurance shall be maintained in the amounfs and for the periods that
<br />Lender requires. Borrower shall also insure all improvements on the Properiy, whether now in existence or
<br />subsequentlY erected, against loss by flaods to the extent required by the Secretary. All insurance shall be cazried with
<br />companies approved by Lender. The insivance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acc:eptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediete notice by mail. Lender may make proof of loss if not
<br />made PromPt1Y by Borrower. Each insivance company concetned is hereby suthorized and directed to make payment
<br />for such loss direcUy to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />procxeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />tUis Security Instrument, first to any delinquent amounts applied in the order in PazagraPh 3, and then to Pi'epaYmeat
<br />of principal, or (b) to the restoration or repair of the damaged Ptoperry. Any application of the proceeds to the
<br />principal shall not extet►d or postpone the due date of the monthly payment� wlrich are referred to ih paragraph 2, or
<br />change the amount of such payment�. t�ny excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedne� under the Note and this S�sity In.�trument shall be paid to the en6ty legally entitled thereto.
<br />FHA NEBRASKA D� OF TRUST - MERS Dodlag/e �
<br />NmOTZ.FHA 10/27/11 Page 2 of 7 www.darnagtc.aom
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