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' � � RE-RECQRpEp
<br /> � � � 99 �08134 s9 � 07334
<br /> COVENANTS. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when
<br /> due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under
<br /> the Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower
<br /> shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum
<br /> ("Funds") for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on
<br /> the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property
<br /> insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any;
<br /> and (fl any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the
<br /> payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect
<br /> and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may
<br /> require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended
<br /> from time to time, 12 U.S.C. § 2601 et sea. ("RESPA"), unless another law that applies to the Funds sets a lesser
<br /> amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br /> Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures
<br /> of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution
<br /> whose deposits are insured by a federal agency, instrumentality or entity (including Lender, if Lender is such an
<br /> institution)or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may
<br /> not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the
<br /> Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such
<br /> a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax
<br /> reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an
<br /> agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any
<br /> interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid
<br /> on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits
<br /> and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as
<br /> additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts
<br /> permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with
<br /> the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay
<br /> the Escrow Items when due, Lender may so notify Borrower in writing, and in such case Borrower shall pay to
<br /> Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than
<br /> twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security
<br /> Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Lender
<br /> shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held
<br /> by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender
<br /> under paragraphs 1 and 2 shall be applied in the following order: first, to interest due; second, to principal due; third,
<br /> to amounts payable under paragraph 2; fourth, to prepayment charges due under the Note; and fifth, 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
<br /> or other security agreement with a lien which has priority over this Security Instrument, including Borrower's
<br /> covenants to make payments when due. Any default by Borrower under any such mortgage, deed of trust or other
<br /> security agreement shall be a default under this Security Instrument and the Note. Borrower shall pay or cause to
<br /> be paid all taxes, assessments and other charges, �nes and impositions attributable to the Property which may attain
<br /> a priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these
<br /> obligations in the manner provided in paragraph 2, or, if not paid in that manner, Borrower shall pay them on time
<br /> directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid
<br /> under this paragraph 4. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br /> receipts evidencing the payments.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected
<br /> on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other
<br /> hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in
<br /> the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen
<br /> by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br /> coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property
<br /> in accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include
<br /> a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires,
<br /> Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss,
<br /> Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made
<br /> promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds shall be
<br /> applied first to reimburse Lender for costs and expenses incurred in connection with obtaining any such insurance
<br /> proceeds, and then, at Lender's option, in such order and proportion as it may determine in its sole and absolute
<br /> discretion, and regardless of any impairment of security or lack thereof: (i) to the sums secured by this Security
<br /> Instrument, whether or not then due, and to such components thereof as Lender may determine in its sole and absolute
<br /> discretion; and/or (ii) to Borrower to pay the costs and expenses of necessary repairs or restoration of the Property
<br /> to a condition satisfactory to Lender. If Borrower abandons the Property, or does not answer within 30 days a notice
<br /> NEBR�►SKA Page 2 of 8 NEXX0820 (Rev. 04/22/97)
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