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<br />encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform covenants
<br />with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower
<br />shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and
<br />late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments
<br />due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other
<br />instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid,
<br />Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in
<br />one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank
<br />check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits
<br />are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
<br />Payments are deemed received by Lender when received at the location designated in the Note or at such other
<br />location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return
<br />any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current.
<br />Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any
<br />rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
<br />obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of
<br />its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied
<br />funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable
<br />period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds
<br />will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or
<br />claim which Borrower might have now or in the future against Lender shall relieve Borrower from making
<br />payments due under the Note and this Security Instrument or performing the covenants and agreements secured by
<br />this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments
<br />accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note;
<br />(b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic
<br />Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second
<br />to any other amounts due 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
<br />amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If
<br />more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the
<br />repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that
<br />any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess
<br />may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges
<br />and then as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note
<br />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 under the
<br />Note, until the Note is paid in full, a sum (the "Funds ") to provide for payment of amounts due for: (a) taxes and
<br />assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the
<br />Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance
<br />required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by
<br />Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of
<br />Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan,
<br />Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower,
<br />and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices
<br />of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender
<br />waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing.
<br />In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow
<br />Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
<br />receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make
<br />such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in
<br />Initials: ,
<br />NEBRASKA -- Single Family -- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01 (page 3 of 13 pages)
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