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202300790 <br />and covenants and agrees to defend the title to the Property against all claims and demands, subject to <br />any encumbrances and ownership interests of record as of Loan closing. <br />THIS SECURITY INSTRUMENT combines uniform covenants for national use with limited variations <br />and non-uniform covenants that reflect specific Nebraska state requirements to constitute a uniform <br />security instrument covering real property. <br />Uniform Covenants. Borrower and Lender covenant and agree as follows: <br />1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late <br />Charges. Borrower will pay each Periodic Payment when due. Borrower will also pay any <br />prepayment charges and late charges due under the Note, and any other amounts due under this <br />Security Instrument. Payments due under the Note and this Security Instrument must be made in <br />U.S. currency. If any check or other instrument received by Lender as payment under the Note or <br />this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent <br />payments due under the Note and this Security Instrument be made in one or more of the following <br />forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's <br />check, or cashier's check, provided any such check is drawn upon an institution whose deposits are <br />insured by a U.S. federal agency, instrumentality, or entity; or (d) Electronic Fund Transfer. <br />Payments are deemed received by Lender when received at the location designated in the Note or <br />at such other location as may be designated by Lender in accordance with the notice provisions in <br />Section 16. Lender may accept or return any Partial Payments in its sole discretion pursuant to Section <br />2. <br />Any offset or claim that Borrower may have now or in the future against Lender will not relieve <br />Borrower from making the full amount of all payments due under the Note and this Security <br />Instrument or performing the covenants and agreements secured by this Security Instrument. <br />2. Acceptance and Application of Payments or Proceeds. <br />(a) Acceptance and Application of Partial Payments. Lender may accept and either apply or hold <br />in suspense Partial Payments in its sole discretion in accordance with this Section 2. Lender is not <br />obligated to accept any Partial Payments or to apply any Partial Payments at the time such payments <br />are accepted, and also is not obligated to pay interest on such unapplied funds. Lender may hold <br />such unapplied funds until Borrower makes payment sufficient to cover a full Periodic Payment, at <br />which time the amount of the full Periodic Payment will be applied to the Loan. If Borrower does <br />not make such a payment within a reasonable period of time, Lender will either apply such funds in <br />accordance with this Section 2 or return them to Borrower. If not applied earlier, Partial Payments will <br />be credited against the total amount due under the Loan in calculating the amount due in connection <br />with any foreclosure proceeding, payoff request, loan modification, or reinstatement. Lender may <br />accept any payment insufficient to bring the Loan current without waiver of any rights under this <br />Security Instrument or prejudice to its rights to refuse such payments in the future. <br />(b) Order of Application of Partial Payments and Periodic Payments. Except as otherwise <br />described in this Section 2, if Lender applies a payment, such payment will be applied to each Periodic <br />Payment in the order in which it became due, beginning with the oldest outstanding Periodic Payment, <br />2201554695 <br />NEBRASKA -Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT <br />Wolters Kluwer Financial Services, Inc. <br />2023021323.1.0.4809-J20221024Y <br />1 <br />Form 3028 07/2021 <br />10/2022 <br />Page 5 of 22 <br />l. <br />: <br />'IL <br />1 <br />