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which has the address of 703 WEST 8TH STREET, GRAND ISLAND
<br />[Street] [City]
<br />Nebraska 68801- ( "Property Address ");
<br />[Zip Code]
<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements,
<br />appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also
<br />be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the
<br />"Property ".
<br />BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the
<br />right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of
<br />record. Borrower warrants and will defend generally the title to the Property against all claims and demands,
<br />subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform
<br />covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
<br />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
<br />when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges
<br />due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender,
<br />Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in
<br />full, a sum ( "Funds ") for: (a) yearly taxes and assessments which may attain priority over this Security
<br />Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any;
<br />(c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly
<br />mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with
<br />the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called
<br />"Escrow Items ". Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum
<br />amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the
<br />federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et
<br />lea. ( "RESPA "), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any
<br />time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount
<br />of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or
<br />otherwise in accordance with applicable law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality,
<br />or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall
<br />apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the
<br />Funds, 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. However, Lender may
<br />require Borrower to pay a one -time charge for an independent real estate tax reporting service used by Lender
<br />in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or
<br />applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or
<br />earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits
<br />and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged
<br />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
<br />account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the
<br />amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender
<br />may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to
<br />make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at
<br />Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to
<br />Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property,
<br />Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of
<br />acquisition or sale as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender
<br />NEBRASKA- Single Family -Fannie Mae /Freddie Mac Uniform Instrument
<br />Form 3028 9/90
<br />Laser Forms Inc. (800) 446 -3555
<br />LFI #FNMA3028 1/99 Page of 7 Initials:
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