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200203399
<br />BORROWER COVENANTS that Borrower is iawfuil_r' seised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Property~ is unt.rcurnbered, except for encumbrances of record. Borrower
<br />w•arrarrt ;; 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 ",7- -"o ^al use and non - uniform covenants with
<br />limited variations by jurisdiction to constitute a uniform security instrument covering real 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 cf. and interest
<br />on, the debt evidenced by the Note and late charges duP under the Note.
<br />2. Monthly Payment of'iaxes, Insurance, and Other Charges. Borrower shall include in each monthly payment,
<br />togetilc7 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
<br />(c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a mortgage
<br />insurance premium to the Secretary of Housing and Urban Development ( "Secretary "), or in any year in which such
<br />premium would have been required if Lender still held the Security Instrument, each monthly payment shall also
<br />include either: (i) a sum for the t'suiunl mortgage insurance premium to be paid by Lender to the Secretary. or (ii) a
<br />monthly charge 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. these items
<br />arc cali;d "Escrow' items" and the sutras paid to Lender are called "Escrow Funds."
<br />Lender mav, at anv time, collect and hole', amounts for Escrow Items in an aggregate amount not to exceed the
<br />;naximlm arnount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. § 2601 et_seq. and implementing regulations, 24 CFR Pan 3500, as they may be amended from
<br />timo to time ( "RESPA "). except that the cushion or reserve pennitted by RESPA for unanticipated disbursements or
<br />disbursen;cnts before the Borrower's payments are available in the account may not be bases] on amounts due for the
<br />mortgagc insurance prer~ium.
<br />If the amounts held I)v Lender for Escrow' Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />nccount to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time
<br />are not sufticicnt to pay the Escrow Items when due, Lcgdcr may notify the Borrower and require Borrower to make
<br />up the shorta�c as permitted by RESPA.
<br />Thw Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower
<br />tender; to Lender the full payment of all such Burns. Bor'rower's account shall be credited with the balance remaining
<br />for 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. Immediately prior
<br />to a foreclosure sale of the Property or its acquisition by Lender, Borrrnver'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 i and 2 shall be applied by Lender as follows:
<br />F'iRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly chargt by the
<br />Secretary instead of the monthly mortgage insurance premium:
<br />S; COND, to any taxes, special assessments, ]casehold payments or ground rents, and foe, flood and other bazars
<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 />hiFTHH, to late charges due under the Note.
<br />4, Fire, Flood and Other Ilazard Insurance. Borrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br />Lendcr requires insurance, This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently
<br />crectrd, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies
<br />appro•,cd by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable
<br />clauses in favor of, and in a form 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
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to male payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />proceeds cony be applicd by [_ender, at its option, either (a) to the reduction of the indebtedness grader the Note and
<br />this Secr.rrity Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of princrp;,l, or (b) to the restoration or repair of the damaged. Property. Any' application of the proceeds to the
<br />1rincipal sh;rll not extend or postpone the due date of the monthly payments which are referrrd to in paragraph 2, or
<br />chan;;c the :amount of such payments. Any excess insurance proceeds ever art amount required to pay till outstanding
<br />+ndehtcdncss under the Note in(! this Security instrument shall be paid to the entity legally entitled thereto,
<br />in the evrrtt of foreclosure of this Security Insirurnent or other transfer of title to the Property that cxtingoishes
<br />the indebtedness, all right, tilt,: and interest of Borrower in and to insurance policies in force shall pass to the
<br />purcll*t.r,
<br />.`i. ovx,-upattcy, Preservation, Maintenance and Protection of the Property; Ilorrower's loan Applictttiont
<br />l,c-aseholds. Borrower shill occupy, establish, and use the Property :is llorrowcr'a principal residence within sixtydays
<br />aftcr the cxecutinn of this Security fnAtrllnit'nl (or within sixty days of a I:aer ,alc or , tansfer of the Property) and shall
<br />r,01 ;t:nue to occupy the Prvperty as Borrower's principal residence for rat least tine year niter the Mate of occupancy,
<br />Ill It: ;s Lender determines that requirement wiil + :ame t.tnduc hardship for Borrower, or unless extenuating
<br />,Jrcumst;utces exist which are beyond florrower's (x,ntrol, Borrower shall notify Lender of any extenuating
<br />NEBWASKATHA DR11.1) MI TRUVI'
<br />'r. I,, fN1A rA.) 1+.,.2 I',ry 1 of 6
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