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• 20�201865
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amouni not ta
<br />exceed the naaxim;um amount that rnay be required for Borrower's escrow account under the Real Estate
<br />SettIement Procedures Act of 1974, 12 U.S.C. § 2601 e# seq. and implementing regulations, 24 CFR Part
<br />35U0, as they may be amended from time to time ('"RBSPA"), except that the cushion or reserve permitted by
<br />RESPA for unanticzpated disbursements or disbursernents before the Borrower's payments are available in tlie
<br />account may not be based on amounts due for the mortgage insurance premium.
<br />if the a�nounts held by Lender for Escrow Items exceed the amounts pertnitted to be held by RESPA,
<br />Lender shall account to Borrawer for the excess fcuids as required by RESPA. If the amounes of fimds held by
<br />Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Barrower and
<br />require Borrower to make up the shortage as permitted by RESFA.
<br />The Escrow Funds are pledged as additional securiry for a[1 sums secured by this Security �strument. If
<br />Borrower tenders to Lender the fuil payment of all suc�i sums, Borrower's account shall be ez�edited with the
<br />balance remaining for all ins#allment iten�s {a}, (b), And (c) and any mortgage insw•ance premium installment
<br />that Lender has nat become obligated to pay to the Secretary, and Lender shall promptly refund any excess
<br />funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender,
<br />Borrower's account shall be credited with any balance re�aining for all installz�aents for items (a}, (b), and (c}.
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as
<br />follows:
<br />FIRST, to the mortgage insurance preinium to be paid by Lender to the Secretary or to the manthly
<br />charge by the Secretary instead of fihe monfihly martgage insurance prernium;
<br />SECOND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood
<br />and other hazard insurance premiums, as required;
<br />THIRD, to interest due under tl�e Note;
<br />FOURTH, to amortization of the principal of the Note; and
<br />F1F"I'H, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrawer shall insure all iuiproveinents on the
<br />Property, whethernow i� exis#ence or subsequentiy erected, against any hazards, casualties, and contingencies,
<br />including fire, for which Lender requires insurance. This insurance shall be maintained in the atnounts and for
<br />the periods that Lender requires. Bozxower sha� also inswre all improveme�its on the Property, whether now in
<br />existence or subsec�uently erected, against loss by floods to the extent required by the Secretary, Ali insurance
<br />shail be carried with companies approved by Lender. The insurance policies and any renewals shall be held by
<br />Lender and shatl include loss payable clauses in favor of, aud in a form acceptable to, Lender.
<br />In the event of Ioss, Borrower shall give l.ender immediate notice by nnail. Lender may �nake proaf of
<br />loss if not made promptly by Borrower. Each insurance company concemad is hereby authorized and d'vrected
<br />to make payment for such loss directly to Lender, instead of to Bonrower and to Lender jointly. All or any
<br />part of the insurance praceeds may be applied by Lender, at its option, either (a) to the reduction of the
<br />indebtedness under the Note and this Securily Instrument, first to any delinquent amourits applied in the order
<br />in para.grapkt 3, and then to prepayznent ofprincipal, or {b) to the restoration or repair of the da.maged Proper[y.
<br />Any application of the proceeds to the principal shall not extend ar postpone the due date of the montJaly
<br />payments which are refened to in parag�raph 2, pr change tl�e amount of such payments. Any excess insurauce
<br />proceeds over an amount required ta pay all outstanding indebtedness uuder the Note and this Security
<br />Instruinent shall be paid to the entity legally entxtled thereto.
<br />In the event of foreclasure of this Security Instrument or other transfer of title to the Property that
<br />extinguishes the indebtedness, alI right, title and interest of Borrower in and to insurance policies in force shall
<br />pass to the purchaser.
<br />5. Occupaney, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower slaall occupy, establish, and use the Property as Bonower's principal
<br />residence within sixty days after the execution af this Security Instxuax�ent {or within sixty days of a later sale
<br />or transfer o£ the Praperty} and shaIl continue to occupy the Praperty as Bozrower's principal residence far
<br />at least one year after the date of accupancy, unless Lender determines that requirement will cause undue
<br />NEBltA,SI{A. k�?3. AEEA OT TRUST
<br />NEBRA8KA-MERS
<br />ITEM 2696L3 (091911 }
<br />BAYN�,C0000441 S87
<br />6/9b
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