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200409989
<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements,
<br />appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall
<br />also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument
<br />as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests
<br />granted by Borrower in this Security Instrument; but, if necessary to comply with law or custom, MERS,
<br />(as nominee for Lender and Lender's successors and assigns), has the right: to exercise any or all of those
<br />interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action
<br />required of Lender including, but not limited to, releasing or canceling this Security Instrument.
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the
<br />right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of
<br />record. Borrower warrants and will defend generally the title to the Property against all claims and
<br />demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform
<br />covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
<br />property.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of,
<br />and interest on, 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
<br />monthly payment, together with the principal and interest as set forth in the Note and any late charges, a
<br />sum for (a) taxes and special assessments levied or to be levied against the Property, (b) leasehold
<br />payments or ground rents on the Property, and (c) premiums for insurance required under Paragraph 4. In
<br />any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and
<br />Urban Development ( "Secretary"), or in any year in which such premium would have been required if
<br />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
<br />instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a
<br />reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary,
<br />these items are called "Escrow Items" and the sums paid 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
<br />exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate
<br />Settlement Procedures Act of 1974, 12 U.S.C. § 2601 et sue. and implementing regulations, 24 CFR Part
<br />3500, as they may be amended from time to time ( "RESPA "), except that the cushion or reserve permitted
<br />by RESPA for unanticipated disbursements or disbursements before the Borrower's payments are available
<br />in the account may not be based on amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA,
<br />Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds
<br />held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the
<br />Borrower and require Borrower to make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument.
<br />If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited
<br />with the balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium
<br />installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly
<br />refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Property or its
<br />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
<br />follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly
<br />charge by the Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and
<br />other hazard 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 />GMD 0173 (499) Page 2 of 7
<br />Borrower Initials �
<br />FHA Nebraska Deed of Trust
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