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200104215
<br />1. PAYMENT OF INDEBTEDNESS. Trustors shall pay when due the principal of,
<br />and the interest on, the indebtedness evidenced by the Note, charges, fees and all other sums as
<br />provided in the Loan Instruments.
<br />2. REAL ESTATE TAXES. Trustor shall pay each month, at the time principal and
<br />interest payments are made, l/ 12 of the estimated annual real estate taxes. Beneficiary shall
<br />deposit said amount in a tax and insurance escrow account at Home Federal Savings and
<br />Loan, Grand Island, Nebraska and Trustor shall then pay the real estate taxes each year before
<br />the same become delinquent and shall provide Beneficiary with evidence of payment of the
<br />same. Beneficiary shall release the amount necessary for payment of real estate tax to Trustor
<br />when Trustor requests such release from the escrow account. In the event that the real estate
<br />taxes should increase, the Trustor agrees to make an additional payment sufficient to cover
<br />payment of such taxes.
<br />3. INSURANCE AND REPAIRS. Upon closing, Trustor shall provide Beneficiary
<br />with a policy of fire and extended coverage insurance insuring the house and other building
<br />constituting the trust estate, for an amount no less than the replacement value of the house and
<br />buildings.
<br />In addition to casualty insurance, Trustor shall, at closing, provide Beneficiary with a
<br />policy of comprehensive liability insurance covering the premises and protecting the
<br />Beneficiary and Trustor from all claims, demands, lawsuits, costs, and judgments out of injury
<br />to persons or damage to property occurring on the premises. The coverage shall be in an
<br />amount not less than $300,000.00 single limit for bodily injury and property damage.
<br />Trustor shall pay each month, at the time principal and interest payments are made,
<br />1/ 12 of the estimated annual premiums for casualty insurance and comprehensive general
<br />liability insurance and Beneficiary shall deposit the same in the tax and insurance escrow
<br />account at Home Federal Savings and Loan, Grand Island, Nebraska. Trustor shall then pay
<br />the insurance each year before the same becomes delinquent and shall provide Beneficiary
<br />with evidence of payment of the same. Beneficiary shall release the amount necessary for
<br />payment insurance to Trustor when Trustor requests such release from the escrow account. In
<br />the event that the insurance costs should increase, the Trustor agrees to make an additional
<br />payment sufficient to cover payment of such insurance
<br />4. ACTIONS AFFECTING TRUST ESTATE. Trustors shall appear in and contest
<br />any action or proceeding purporting to affect the security hereof or the rights or powers of
<br />Beneficiary or Trustee, and shall pay all costs and expenses, including cost of evidence of title
<br />and attorney's fees, in any such action or proceeding in which Beneficiary or Trustee may
<br />appear. Should Trustors fail to make any payment or to do any act as and in the manner
<br />provided in any of the Loan Instruments, Beneficiary and /or Trustee, each in its own
<br />discretion, without obligation, may make or do the same in such manner and to such extent as
<br />either may deem necessary to protect the security hereof. Trustors shall, immediately upon
<br />demand therefor by Beneficiary, pay all costs and expenses incurred by Beneficiary in
<br />connection with the exercise by Beneficiary of the foregoing rights, including, without
<br />limitation, costs of evidence of title, court costs, appraisals, surveys and attorney's fees. Any
<br />such costs and expenses not paid within ten (10) days of written demand shall draw interest at
<br />the default rate provided in the Note.
<br />5. EMINENT DOMAIN. Should the Trust Estate, or any part thereof or interest
<br />therein, be taken or damaged by reason of any public improvement or condemnation
<br />proceeding, or in any other manner including deed in lieu of Condemnation
<br />( "Condemnation "), or should Trustors receive any notice or other information regarding such
<br />proceeding, Trustors shall give prompt written notice thereof to Beneficiary. Beneficiary shall
<br />be entitled to all compensation and condemnation awards and other payments or relief
<br />therefor, and shall be entitled to make any compromise or settlement in connection with such
<br />taking or damage. All such compensation and condemnation, awards, damages, rights of
<br />action and proceeds awarded to Trustors (the "Proceeds ") are hereby assigned to Beneficiary;
<br />and Trustors agree to execute such further assignments of the Proceeds as Beneficiary or
<br />Trustee may require.
<br />6. APPOINTMENT OF SUCCESSOR TRUSTEE. Beneficiary may, from time to
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