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201202181
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Last modified
4/3/2012 2:49:57 PM
Creation date
3/22/2012 9:11:09 AM
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201202181
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201202181 <br /> •retain the same lien priority initially granted to loan advances has expired) and state law permits the original <br /> lien status to be maintained for future loan advances through the execution and recordation of one or more <br /> documents,then Lender shall obtain title evidence at Borrower's expense. lithe title evidence indicates that the <br /> Property is not encumbered by any liens(except the First Security Instrument described in Paragraph 13(a), this <br /> Second Security Instrument and any subordinate liens that the Lender determines will also be subordinate to <br /> any future loan advances),Lender shall request the Borrower to execute any documents necessary to protect the <br /> priority of the lien status of future loan advances. Borrower agrees to execute such documents. If state law <br /> does not permit the original lien status to be extended to future loan advances,Borrower will be deemed to have <br /> failed to have performed an obligation under this Security Instrument. <br /> (b) Tax Deferral Programs. Borrower shall not participate in a real estate tax deferral program, if any liens <br /> created by the tax deferral are not subordinate to this Security Instrument. <br /> (c) Prior Liens. Borrower shall promptly discharge any lien which has priority over this Security instrument <br /> unless Borrower: (a)agrees in writing to the payment of the obligation secured by the lien in a manner <br /> acceptable to Lender; (b)contests in good faith the lien by,or defends against enforcement of the lien in, legal <br /> proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forfeiture of any <br /> part of the Property;or(c)secures from the holder of the lien an agreement satisfactory to Lender subordinating <br /> the lien to all amounts secured by 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 <br /> identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within len <br /> (10)days of the giving of notice. <br /> 13. Relationship to First Security Instrument. <br /> (a) Second Security Instrument. In order to secure payments which the Secretary may make to or on behalf <br /> of Borrower pursuant to Section255(i)(1)(A) of the National Housing Act and the Loan Agreement, the <br /> Secretary has required Borrower to execute a Second Note and this Second Security Instrument. Borrower also <br /> has executed a First Note and First Security Instrument. <br /> (h) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not be <br /> included in the debt under the First Note unless: <br /> (i) The First Security Instrument is assigned to the Secretary;or <br /> (ii) The Secretary accepts reimbursement by the holder of the First Note for all payments made by the <br /> Secretary. <br /> If the circumstances described in (i) or(ii)occur, then all payments by the Secretary, including interest on <br /> the payments but excluding late charges paid by the Secretary, shall be included in the debt under the First <br /> Note. <br /> (c) Effect on Borrower. Where there is no assignment or reimbursement as described in (b)(i)or(ii)and the <br /> Secretary makes payments to Borrower,then Borrower shall not: <br /> (i) Be required to pay amounts owed under the First Note, or pay any rents and revenues of the Property <br /> under Paragraph 19 to the holder of the First Note or a receiver of the Property, until the Secretary has <br /> required payment in full of all outstanding principal and accrued interest under the Second Note;or <br /> (ii) Be obligated to pay interest or shared appreciation under the First Note at any time, whether accrued <br /> before or after the payments by the Secretary, and whether or not accrued interest has been included in the <br /> principal balance under the First Note. <br /> (d) No Duty of the Secretary. the Secretary has no duty to the holder of the First Note to enforce covenants <br /> Nebraska la Security Ins/, omen ©Bay lions.Inc.06/10 <br /> Page 5 <br />
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