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200000157
<br /> BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br /> grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower
<br /> warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances
<br /> of record.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with
<br /> 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 and Late Charge. Borrower shall pay when due the principal of, and interest
<br /> on, the debt evidenced by the Note and late charges due under the Note.
<br /> 2. Monthly Payment of Taxes,Insurance, and Other Charges. Borrower shall include in each monthly payment,
<br /> together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special
<br /> assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and
<br /> (c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a mortgage
<br /> insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in which such
<br /> premium would have been required if Lender still held the Security Instrument, each monthly payment shall also
<br /> include either: (i) a sum far the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a
<br /> monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a
<br /> reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br /> are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br /> Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br /> maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures
<br /> Act of 1974, 12 U.S.C.§2601 et seq. and implementing regulations, 24 CFR Part 3500,as they may be amended from
<br /> time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or
<br /> disbursements before the Borrower's payments are available in the account may not be based on amounts due for the
<br /> mortgage insurance premium.
<br /> If the amounts held by Lender far Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br /> account to Bonower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time
<br /> are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br /> up the shortage as pernutted by RESPA.
<br /> The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower
<br /> tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining
<br /> for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become
<br /> obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior
<br /> to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance
<br /> remaining for all installments for items (a), (b), and (c).
<br /> 3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br /> FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br /> Secretary instead of the monthly mortgage insurance premium;
<br /> SECOND, to any t�es, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br /> insurance premiums, as required;
<br /> THIRD, to interest due under the Note;
<br /> FOURTH, to amortization of the principal of the Note; and
<br /> FIFTH, to late charges due under the Note.
<br /> 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether
<br /> now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br /> Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br /> requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently
<br /> erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies
<br /> approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable
<br /> clauses in favor of, and in a form acceptable to, Lender.
<br /> In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br /> made promptly by Borrower. Each insurance company concemed is hereby authorized and directed to make payment
<br /> for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br /> proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br /> this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3,and then to prepayment
<br /> of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br /> principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2,or
<br /> change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br /> indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br /> In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes
<br /> the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pasS to the
<br /> purchaser.
<br /> 5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br /> after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br /> continue to occupy the Property as Borrower's principal residence for at least one yeaz after the date of occupancy,
<br /> unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br /> circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating
<br /> NEBRASKA-FHA DEED OF TRUST 6/96
<br /> Document Systems,lnc.(800)649-t362 Page 2 of 6
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