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99 110597
<br /> appurtanances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered
<br /> by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
<br /> BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to
<br /> grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower
<br /> warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances
<br /> of record.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with
<br /> limited vaziations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> Borrower and Lender covenant and 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 /> 2. Monthly Payment 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 under paragraph 4. In any year in which the Lender must pay a mortgage insurance
<br /> premium to the Secretary of Housing and Urban Development ("Secretazy"), or in any year in which such premium would
<br /> have been required if Lender still held the Security Instrument, each monthly payment shall also include either; (i) a sum
<br /> for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (u) a monthly charge instead of a
<br /> mortgage insurance premium if this Security Instrument is held by the Secretazy, in a reasonable amount to be determined
<br /> by the Secretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid
<br /> to 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
<br /> maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act
<br /> of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time
<br /> to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or
<br /> disbursements before the Borrower's payments are available in the account may not be based on amounts due for the
<br /> mortgage insurance 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 is not
<br /> 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
<br /> obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Im�ediately prior to
<br /> a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance
<br /> remaining for all 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 taxes, 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;and
<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
<br /> now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fue, 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
<br /> to the eactent 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 acceptable
<br /> to,Lender.
<br /> FHA Nebraska Mongage-S/95 Page 2 of 6
<br /> Page 2 Form Sottwara by Automated Real Estats Ssrvices,Inc. 1-800-330-1295 ES�UITIN/99030766
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