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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: (a) interest due under the Note; (b) principal
<br />due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the
<br />order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other
<br />amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
<br />amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more
<br />than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment
<br />of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess
<br />exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied
<br />to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described
<br />in 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, if any, or any sums payable by Borrower to Lender in
<br />lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are
<br />called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community
<br />Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall
<br />be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section.
<br />Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds
<br />for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow
<br />Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly,
<br />when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by
<br />Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as
<br />Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be
<br />deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement"
<br />is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to
<br />pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and
<br />Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver
<br />as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation,
<br />Borrower 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 />NEBRASKA -Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Form 3028 1101
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<br />Borrower(s) Initials
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