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<br />time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied
<br />to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which
<br />Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the
<br />Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted
<br />and applied by Lender shall be applied in the following order of priority:
<br />First, to the Mortgage Insurance premiums to be paid by Lender to the Secretary or the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premiums;
<br />Second, to any taxes, 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 />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 Note,
<br />until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments
<br />and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property;
<br />(b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by
<br />Lender under Section 5; and (d) Mortgage Insurance premiums to be paid by Lender to the Secretary or the monthly
<br />charge by the Secretary instead of the monthly Mortgage Insurance premiums. These items are called "Escrow Items."
<br />At origination or at any time during the term of the Loan, Lender may require that Community Association Dues,
<br />Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow
<br />Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall
<br />pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all
<br />Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any
<br />time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and
<br />where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if
<br />Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may
<br />require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a
<br />covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in
<br />Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the
<br />amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower
<br />shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any
<br />or all Escrow Items at any time by a notice given in accordance with Section 14 and, upon such revocation, Borrower
<br />shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at
<br />the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA.
<br />Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of
<br />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 an institution whose deposits are so insured) or in any Federal Home Loan Bank.
<br />Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not
<br />charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow
<br />Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge.
<br />Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not
<br />be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing,
<br />however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting
<br />of the Funds as required by RESPA.
<br />FHA Nebraska Deed of Trust with MERS 1/2015
<br />Page 4 of 12
<br />IDS, Inc. - 59482
<br />Borrower(s) Initials3-6d 30-45
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