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9 � 110a96
<br /> COVENANTS. Borrower and I..ender covenant and agree as follows:
<br /> 1. Payment of Principal and In�tcrest; PrepAynnent and Late Charges. Borrower sha11 promptly 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. Funds for Txxe� and Insurancc. Subject to applicable law or to a written waiver by Lender, Bonower shall
<br /> pay to Lencler on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds")
<br /> for: (a) yearly tazes and assessments which may attain priority over this Security Instniment as a lien on the Property;
<br /> (b) yearly lcasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance
<br /> premiums; (d) ycarly flood insurance premiums, if any; (e) ycarly mortgage insurance premiums, if any; and (� any
<br /> sums payable by Borrowex to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of
<br /> mortgage insurance premiums. These items are called "Bscrow Items." Lender may,at any time, collect and hold Funds
<br /> in an amount not to exceed the mazimum amount a lender for a federally related mortgage loan may require for
<br /> Borrower'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 et sea. ("RESPA"), unless anothcr 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. I.ender 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 Funds shall be held in an insdtution whose deposits are insured by a federal agency,instrumentality, or entity
<br /> (including Lender, if Lender is such an institutiott) or in any Federal Home Loan Bank. Lender shall apply the Funds
<br /> to pay the Escrow Items. Lender may not charge Bonower 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 petmits I..ender to make such a charge. Howcvcr, Lender may require Borrower to pay a one-time charge for an
<br /> indcpendent xeal estatc tax reporting service used by Lender in connecdon with this loan, unless applicable law
<br /> provides othcrwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be
<br /> rcquired to pay Bonowcr 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 charge, an annual accounting of the
<br /> Funcis, showing credits and debits to the Funds and the purpose for which each debit to the Punds was made. The
<br /> Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the �nds held by Lender exceed the amounts permitted to be held by applicable law,Lender shall account to
<br /> Bonower far the excess Funds in accorciancc with the requirements of applicable law.If the amount of the Funds held
<br /> by Lender at any dme is not sufficient to pay the Bscrow Items when due, Lender may so notify Borrower in writing,
<br /> and, in such case Bonower shall pay to Lender khe amount necessary to make up the deficiency. Borrower sha11 make
<br /> up thc 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 prompfly refund to Borrower
<br /> any Funds held by L,crnler. If, under paragraph 21, Ixnder shall acquire or sell the Property, Lender, prior to the
<br /> acquisidon or salc of thc Property, shall apply any Funds held by I.ender at the time of acquisition or sale as a credit
<br /> against thc sums securcd by this Security Instrument.
<br /> 3. Applicstdnn af PAy�. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 shall be applied in the followiug order: first, to any prepayment charges due under the Note;
<br /> second, to atnounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late
<br /> charges due uncler the Note.
<br /> 4. Charges; Iiens. Bonower 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 Bonower 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 a11
<br /> tazes,assessments and other charges, fines and imposidons attributable to the Property wluch 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 provlded in Paragraph 2,or,1f not paid iu that manncr, Borrower shall pay them on time directly to the person
<br /> owed payment. Borrower shall prompdy furnish to Lender all notices of amounts to be paid under this paragraph.
<br /> If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br /> payments.
<br /> S. Hazard or Praperty Insurance. Borrower shall keep the improvements now existing or hereafter erected on
<br /> the Property insured against loss by fire,hazards included within the term "extended coverage" and any other hazazds,
<br /> including floods or flooding, for which I.euder requires insurance. This insurance shall be maintained in the amounts
<br /> and for the periods tbat I.ender requires. The insurance carrier providing the insurance shall be chosen by Bonower
<br /> subject to I.ender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described
<br /> above, Lender may,at Lender's opdon, obtain coverage to protect Lender's rights in the Property in accorda.nce with
<br /> paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. i
<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 I.ender. Lender inay make proof of loss if not made prompdy by Bonower.
<br /> Unless Lender and Borrower otherwise agree in wridng,any insurance proceeds shall be applied first to reimburse
<br /> L.ender for costs and expenses incuned 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 regardless 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 ezpenses of necessary repairs or restoration of the Property to a condition satisfactory to Lender.
<br /> If Bonower abandons the Property, or does nnt atLCwer within 30 days a nodce from Lender that the insurance carrier
<br /> has offered to settle a claim, Lender may collect the insurance proceeds. Lender may, in its sole a.nd absolute
<br /> discredon, and regardless of any impairment of security or lack thereof, use the proceeds to repair or restore the
<br /> Property or to pay the sums secured by this Security Instnunent, whether or not then due. The 30-day period will �
<br /> begin when the notice is given.
<br /> NEBItA3KA AR)�[ PACX3RAltB (REV. 03/97)
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