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<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 shall
<br />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 Lender
<br />under Section 5; and (d) Mortgage Insurance premiums to be paid by Lender to the Secretary or the monthly charge by
<br />the Secretary instead of the monthly Mortgage insurance premiums. These items are called "Escrow Items." At
<br />origination or at any time during the teen of the Loan, Lender may require that Community Association Dues, Fees, and
<br />Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower
<br />shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the
<br />Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow items. Lender
<br />may waive Borrower's obligation to pay to Lender Funds for any or all Escrow items at any time. Any such waiver may
<br />only be in writing. in the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for
<br />any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
<br />receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such
<br />payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this
<br />Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow
<br />Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow item, Lender may exercise
<br />its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender
<br />any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance
<br />with Section 14 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then
<br />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. Lender
<br />shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future
<br />Escrow items or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits arc 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 Honie Loan Bank. Lender
<br />shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge
<br />Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items,
<br />unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an
<br />agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to
<br />pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest
<br />shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required
<br />by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the
<br />excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender
<br />shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the
<br />shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in
<br />FHA Nebraska Deed of Trust with MERS 1/2015
<br />IDS, Inc. - 59482
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