|
200412251
<br />partial payments in the future, but Lender is not obligated to apply such payments at the time such
<br />payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need
<br />not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment
<br />to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall
<br />either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to
<br />the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim
<br />which Borrower might have now or in the future against Lender shall relieve Borrower from making
<br />payments due under the Note and this Security Instrument or performing the covenants and agreements
<br />secured by this Security Instrument.
<br />2. Application of Payments. Unless Applicable Law provides otherwise, all payments received by
<br />Lender under the Note and Section 1 will be applied by Lender as permitted under the Note.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due
<br />under the Note, until the Note is paid in full, a sum (the "Funds ") to provide for payment of amounts due
<br />for "Escrow Items." "Escrow Items" can include taxes and assessments and other items which can attain
<br />priority over this Security Instrument as a lien or encumbrance on the Property, leasehold payments or
<br />ground rents on the Property, if any, premiums for any and all insurance required by Lender under
<br />Section 5, and Mortgage Insurance premiums, if any. At origination or at any time during the term of the
<br />Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed
<br />by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
<br />furnish to Lender all notices of amounts to be paid under this Section.
<br />Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation
<br />to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender
<br />Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of
<br />such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items
<br />for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
<br />receipts evidencing such payment within such time period as Lender may require. Lender may revoke the
<br />waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 13 and,
<br />upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then
<br />required under this Section 3. However, Borrower shall not be obligated to make these payments to
<br />Lender to the extent that Borrower makes these payments to the holder of a prior mortgage or deed of
<br />trust on the Property if such holder is an institutional lender.
<br />Borrower's obligation to pay the amounts due for Escrow Items and to provide receipts for Escrow
<br />Items shall for all purposes be deemed to be a covenant and agreement contained in this Security
<br />Instrument, as the phrase "covenant and agreement" is used in Section 7. If Borrower is obligated to pay
<br />Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow
<br />Item, Lender may exercise its rights under Section 7 and pay such amount and Borrower shall then be
<br />obligated under Section 7 to repay to Lender any such amount.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to
<br />apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender
<br />can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and
<br />reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable
<br />Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency,
<br />instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in
<br />any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the
<br />time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds,
<br />annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower
<br />interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is
<br />made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required
<br />to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing,
<br />however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an
<br />annual accounting of the Funds as required by RESPA. l
<br />Borrower Initials l
<br />GMD Nebraska Junior Lien DOT - HC Form 33703.3 05/17/02 (page 4 of 13 pages)
<br />
|