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99 110234
<br /> Borrower and Lender covenant agree as follows:
<br /> UNIFORM COVENANTS.
<br /> 1. Payment of Principal, Interest, and Late Charge. Borrower shall pay when due the principal of, and interest on,
<br /> the debt evidenced by the Note and late charges due under the Note.
<br /> 'L. Monthly Payments of Taxes, Insurance and Other Charges. Borrower shall include in each monthly payment,
<br /> together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special
<br /> assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c)
<br /> premiums for insurance required by paragraph 4. In any year in which the Lender must pay a mortgage insurance premium to
<br /> the Secretary of Housing and Urban Development ("Secretary"), or in any year in which such premium would have been
<br /> required if Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum for the
<br /> annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br /> insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to be determined by the
<br /> Secretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid to
<br /> Lender are called "Escrow Funds."
<br /> Lender may, at any time,collect and hold amounts for Escrow Items in an aggregate amount not to exceed the m�imum
<br /> amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12
<br /> U.S.C. § 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time
<br /> ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements
<br /> before the Borrower's payments aze available in the account may not be based on amounts due for the mortgage insurance
<br /> premium.
<br /> If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br /> account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are
<br /> not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the
<br /> shortage as permitted by RESPA.
<br /> The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower
<br /> tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for
<br /> all installment items(a),(b),and(c)and any mortgage insurance premium installment that Lender has not become obligated to
<br /> pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure
<br /> sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all
<br /> installments for items (a), (b), and(c).
<br /> 3. Application of Payments. All payments under Paragraphs 1 and 2 shall be applied by Lender as follows:
<br /> FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br /> Secretary instead of the monthly mortgage insurance premium;
<br /> SECOND, to any t�es, 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;
<br /> FIFTH, to late charges due under the Note.
<br /> 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in
<br /> existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender
<br /> requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower
<br /> shall also insure all improvements on the Property, whether now in existence or subsequently erected,against loss by floods to
<br /> the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance
<br /> policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form
<br /> acceptable to, Lender.
<br /> In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
<br /> promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such
<br /> loss direccly to Lender, instead of to Borrower aqd to I,e�nder jointly. All or any part of the insurance proceeds may be
<br /> applied by Lender, at its option, either(a)to the reduction o�the indel�tedness under the Note and this Security Instrument,
<br /> first to any delinquent amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the
<br /> restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not extend or postpone
<br /> the due date of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any
<br /> excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security
<br /> Inserument shall be paid to the entity legally er{titled thereto.
<br /> In the event of fereclosure of this Security Instrument or other trarisfer of title to the Property that extinguishes the
<br /> indebtedness, all right, title and interest oi Borrower in and to insurance policies in force shall pass to the purchaser.
<br /> 5. Occupancy, Preservation, Maintenance and Protection af the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish', and use the Property as Borrower's principal residence within sixty days
<br /> after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br /> � continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless
<br /> the Lender determines this requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist
<br /> which are beyond Bonower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not
<br /> commit waste or destroy, damage or substantially change'the Property or allow the Property to deteriorate, reasonable
<br /> 9128 2/94(YNEO) (page 2 of 6 pages) FHA Nebraska Deed of Trust-10/95
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