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<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 and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") for:
<br />(a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)
<br />yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums;
<br />and (d) yearly flood insurance premiums, if any. These items are called "Escrow Items ". Lender may, at any time,
<br />collect and hold Funds in an amount rlot to exceed the maximum amount a lender for a federally related mortgage loan
<br />may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as
<br />amended from time to time, 12 U.S.C. § 2601 et seq. ( "RESPA "), unless another law that applies to the Funds sets
<br />a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br />Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures
<br />of future 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 such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds
<br />to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing
<br />the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable
<br />law permits Lender to make such a charge. However, Lender may require Borrower to pay a one -time charge for an
<br />independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law
<br />provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be
<br />required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however,
<br />that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
<br />Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br />Funds are pledged as additional security for all sums secured by this Security Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to
<br />Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held
<br />by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing,
<br />and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make
<br />up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If, under paragraph 23, Lender shall acquire or sell the Property, Lender, prior to the
<br />acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit
<br />against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable
<br />under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower
<br />shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices
<br />of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly
<br />furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory
<br />to Lender subordinating the lien to 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 identifying
<br />the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving
<br />of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br />including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br />and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower
<br />subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage
<br />described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in
<br />accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to
<br />the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened.
<br />NEBRASKA- Single Family - UNIFORM INSTRUMENT
<br />Document Systems, Inc. (800) 649 -1362 Page 2 of 6
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