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� r� �g., i�3935
<br /> COVENANTS. Bonower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Iate Chazges. Borrower sha11 prompdy pay when due the
<br /> principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br /> 2. Fvnds for Ta�s and Insurance. Subject to applicable law or to a written waiver by Lender, Bonower shall
<br /> pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("F�nds")
<br /> for: (a) yearly taxes and assessments which may attain priority over this Secu�ity Instrument as a lien on the Property;
<br /> (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance
<br /> premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (� any
<br /> sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of
<br /> mortgage insurance premiums. These items aze called "Escrow Items." Lender may,at any time, collect and hold Funds
<br /> in an amount not to exceed the maiimum amount a lender for a federally related mortgage loan may require for
<br /> Bonower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time
<br /> to time, 12 U.S.C.§2601 se . ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If
<br /> so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may
<br /> 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 Punds shall be held in an institution whose deposits are insured by a federal agency,instrumentality, or endty
<br /> (including Lender, if Lender is such an insdtution) or in any Federal Home Loan Bank. Lender sha11 apply the F�nds
<br /> to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing
<br /> the escrow account, or verifying the Escrow Items, unless Lender pays Bonower interest on the Funds and applicable
<br /> law permits Lender to malce such a charge. However, Lender may require Borrower to pay a one-time charge for an
<br /> independent real estate ta�c reporting service used by Lender in connection with this loan, unless applicable law
<br /> provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, I.ender shall not be
<br /> required to pay Bonower any interest or earnings on the Funds. Borrower and Lender may agree in writing,however,
<br /> that interest shall be paid on the Funds. Lender shall give to Bonower, without chazge, an annual accounting of the
<br /> Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br /> Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law,Lender shall account to
<br /> Bonower for the excess Funds in accordance with the requirements of applicable law.If the amount of the Punds held
<br /> by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing,
<br /> and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make
<br /> up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br /> any Funds held by Lender. If,under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the
<br /> acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit
<br /> against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 shall be applied in the following order: first, to any prepayment charges due under the Note;
<br /> second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late
<br /> charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or
<br /> other security agreement with a lien which has priority over this Security Instrument, including Bonower's covenants
<br /> to make payments when due. Any default by Borrower under any such mortgage, deed of trust or other security
<br /> agreement shall be a default under this Security Instrument and the Note. Borrower shall pay or cause to be paid all
<br /> taxes,assessments and other charges, fines and impositions attributable to the Property which may attain a priority over
<br /> this Security Instrument, and leasehold payments or ground rents, if any. Bonower shall pay these obligations in the
<br /> manner provided in Pazagraph 2,or,if not paid in that manner, Bonower shall pay them on time direcfly to the person
<br /> owed payment. Bonower shall prompdy furnish to Lender all notices of amounts to be paid under this paragraph.
<br /> If Borrower malces these payments directly, Borrower shall promptly fuxnish to Lender receipts evidencing the
<br /> payments.
<br /> 5. Harard or Property Insuranc.e. Borrower shall keep the improvements now exisdng or hereafter erected on
<br /> the Property insured against loss by fire,hazards included within the term "extended coverage" and any other hazards,
<br /> including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br /> and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Bonower
<br /> subject to Lender's approval which shall not be unreasonably withheld. If Bonower fails to maintain coverage described
<br /> above, Lender may,at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with
<br /> paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to
<br /> Lender all receipts of paid premiums and renewal notices. In the event of loss,Borrower shall give prompt notice to
<br /> the insurance carrier and Lender. Lender may make proof of loss if not made prompdy by Bonower.
<br /> Unless Lender and Bonower otherwise agree in writing,any insurance proceeds shall be applied first to reimburse
<br /> Lender for costs and expenses incurred in connection with obtaining any such insurance proceeds, and then, at Lender's
<br /> option, in such order and proportion as it may determine in its sole and absolute discretion, and regazdless of any
<br /> impairment of security or lack thereof: (i) to the sums secured by this Security Instrument, whether or not then due,
<br /> and to such components thereof as Lender may determine in its sole and absolute discretion; and/or (ii) to Borrower
<br /> to pay the costs and expenses of necessary repairs or restoration of the Property to a condition satisfactory to Lender.
<br /> If Bonower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier
<br /> has offered to setfle a claim, Lender may collect the insurance proceeds. Lender may, in its sole and absolute
<br /> discretion, and regazdless of any impairment of security or lack thereof, use khe proceeds to repair or restore the
<br /> Property or to pay the sums secured by khis Security Instrument, whether or not then due. The 30-day period will
<br /> begin when the notice is given.
<br /> NEBRASSA ARM rxoGRAMS (BEV. 03/9�
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