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20121108E
<br />LOAN #: 0295061527
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all
<br />payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest
<br />due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments
<br />shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts
<br />shall be applied first to late charges, second to any other amounts due under this Security Instrument,
<br />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
<br />sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment
<br />and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment
<br />received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each
<br />payment can be paid in full. To the extent that any excess exists after the payment is applied to the full
<br />payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary
<br />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
<br />the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due
<br />under the Note, until the Note is paid in full, a sum (the "Funds ") to provide for payment of amounts due
<br />for: (a) taxes and assessments and other items which can attain priority over this Security Instrument
<br />as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if
<br />any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage
<br />Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of
<br />Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called
<br />"Escrow Items." At origination or at any time during the term of the Loan, Lender may require that
<br />Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such
<br />dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all
<br />notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items
<br />unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may
<br />waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such
<br />waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where
<br />payable, the amounts due for any Escrow Itemsforwhich payment of Funds has been waived by Lender
<br />and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time
<br />period as Lender may require. Borrower's obligation to make such payments and to provide receipts
<br />shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument,
<br />as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow
<br />Items directly, pursuant to awaiver, and Borrower fails to pay the amount due for an Escrow Item, Lender
<br />may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated
<br />under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all
<br />Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation,
<br />Borrower shall pay to 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 permit Lender to apply
<br />the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can
<br />require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and
<br />reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with
<br />Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency,
<br />instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or
<br />in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than
<br />the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds,
<br />annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower
<br />interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement
<br />is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be
<br />required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in
<br />writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge,
<br />an annual accounting of the Funds as required by RESPA.
<br />If there isa surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower
<br />for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined
<br />under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the
<br />amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly
<br />payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify
<br />Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the
<br />deficiency in accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund
<br />to Borrower any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
<br />attributable to the Property which can attain priority over this Security Instrument, leasehold pa nts
<br />Initials:
<br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Form 30281/01
<br />Online Documents, Inc. Page 4 of 11
<br />NEEDEED 1108
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