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<br />against Lender sha11 relieve Borfower from making payments due under the Note and this Security Instrument or
<br />performing the covenants and agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted
<br />and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due
<br />under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order
<br />in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due
<br />under this Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount
<br />to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one
<br />Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the
<br />Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after
<br />the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late
<br />charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall
<br />not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower sha11 pay to Lender on the day Periodic Payments aze due under the Note,
<br />until the N,ote is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments
<br />and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property;
<br />(b) leasehold payments or ground rents on the Properiy, if any; (c) premiums for any and all insurance required by Lender
<br />under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the
<br />payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. T'hese items are called
<br />"Escrow Items: ' At origination or at any time during the term of the Loan, Lender may require that Community
<br />Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments sha11 be
<br />an Escrow Item. Bonower shall promptly fiunish to Lender all notices of amounts to be paid under tkris Section.
<br />Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for
<br />any or all Escrow Items. Lender may waive Borrower's obligarion to pay to Lender Funds for any or all Escrow Items at
<br />any time. Any such waiver may only be in writing. In the event of such waiver, Borrower sha11 pay directly, when and
<br />where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if
<br />Lender requires, sha11 furnish to Lender receipts evidencing such payment within such time period as Lender may
<br />require. Bonower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a
<br />covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section
<br />9. If Bonower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due
<br />for an Escrow Item, Lender may exercise its rights under Secrion 9 and pay such amount and Borrower shall then be
<br />obligated under Secrion 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow
<br />Items at any rime by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to
<br />Lender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to pemut Lender to apply the Funds at
<br />the rime specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender
<br />shall estimate the amount of Funds due on the basis of current data and reasonable esrimates of expenditures of future
<br />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 an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender
<br />shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender sha11 not chazge
<br />Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items,
<br />unless Lender pays Borrower interest on the Funds and Applicable Law percnits Lender to make such a charge. Unless an
<br />agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender sha11 not be required to
<br />pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest
<br />shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required
<br />by RESPA.
<br />NEBRASKA -Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT with MERSForm 3028 1/01
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