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200407107
<br />Loan Number: 121034039 Servicing Number: 001388198-2 Date: 07/16/04
<br />Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey
<br />the Property, and that the Property is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants
<br />and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced
<br />by the Note and late charges as provided in the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall pay to Lender
<br />on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein
<br />"Funds ") equal to one - twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments,
<br />if any) which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus one - twelfth of yearly
<br />premium installments for hazard insurance, plus one - twelfth of yearly premium installments for mortgage insurance, if any, all as
<br />reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the
<br />holder of a prior mortgage or deed of trust if such holder is an institutional lender.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured
<br />or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay
<br />said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds,
<br />analyzing said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and
<br />applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Deed
<br />of Trust that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such
<br />interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to
<br />Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each
<br />debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due
<br />dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments,
<br />insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower
<br />or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay
<br />taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to
<br />make up the deficiency in one or more payments as Lender may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds held
<br />by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply,
<br />no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Deed of Trust.
<br />3. Application of Payments. Unless applicable law provide otherwise, all payments received by Lender under paragraphs
<br />1 and 2 shall be applied in the following order (i) prepayment charges due under the Note, if any (ii) amounts payable under Section
<br />2; (iii) interest then due under the Note; (iv) principal then due under the Note; (v) any other charges then due under or relating to
<br />the Note or Security Instrument including but not limited to late charges and non sufficient funds; (vi) any payments or premiums
<br />due for optional products that I have authorized; and (vii) the unpaid Principal balance of the Note.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any
<br />mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including Borrower's
<br />covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and
<br />impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents,
<br />if any.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
<br />loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such
<br />amounts and for such periods as Lender may require.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that
<br />such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender
<br />and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right to hold the
<br />policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has
<br />priority over this Deed of Trust.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss
<br />if not made promptly by Borrower.
<br />If Borrower abandons the Property, Lender may file, negotiate, and settle any available insurance claim and related matters.
<br />If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then
<br />Lender may negotiate and settle the claim. The 30 day period will begin when the notice is given. In either event, or if Lender
<br />acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
<br />proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's
<br />rights (other than the right to any refund of the unearned premiums paid by Borrower) under all insurance policies covering the
<br />Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair
<br />or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep
<br />the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with
<br />the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or a planned
<br />unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the
<br />condominium or planned unit development, the by -laws and regulations of the condominium or planned unit development, and
<br />constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Deed of
<br />Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at
<br />Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees,
<br />NEBRASKA - SECOND MORTGAGE Initials:
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