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200211282
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and
<br />convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will
<br />defend generally the title to the Property against all claims and demands, subject to,any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform covenants with limited
<br />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, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when
<br />due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the
<br />Note. Borrower, shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security
<br />Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the
<br />Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under
<br />the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money
<br />order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution
<br />whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
<br />Payments are deemed received by Lender when received at the location designated in the Note or at such other location as
<br />nay be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial
<br />payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial
<br />payment insufficient to bring the Lan current, without waiver of any rights hereunder or prejudice to its rights to refuse such
<br />payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are
<br />accepted. If each Periodic Payment is applied as of its scheduled due dale, Then Lender need not pay interest on unapplied funds.
<br />Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within
<br />a reasonable period of time, Lender shall either apply such funds or return diem to Borrower. If not applied earlier, such funds will
<br />be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which
<br />Borrower might have now or in die future against Lender shall relieve Borrower from making payments due under the Note and this
<br />Security Instrument or performing the covenants and agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and
<br />applied by Lcrafer shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the
<br />Note; (e) amounts due under Section 3. Such payments shall he applied to each Periodic Payment in the order in which it became
<br />due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument,
<br />and then to reduce [lie principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay
<br />any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment
<br />is outstanding, Leader nay apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the
<br />extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the frill payment
<br />of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied
<br />first to any prepayment charges and their as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not
<br />extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until
<br />the Note is paid in full, a sum (Thu "Funds ") to provide for payment of amounts due for: (a) taxes and assessments and other items
<br />which can attain priority over this Security Instrument as a lien or crieumbrance on the Property; (b) leasehold payments or ground
<br />rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage
<br />Insurance laminates, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in
<br />accordance with the provisions of Section 10. These items are called "Escrow Iterel At origination or at any time during the
<br />tens of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower,
<br />and such dues, few and assessments shall be an Escrow Item. Borrower shall promptly famish to Lender all notices of amounts To
<br />be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to
<br />pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow
<br />Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and
<br />where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender
<br />requires, shall famish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's
<br />NEBRASKA - Single Family - Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Form 302��8,,bb1101
<br />C3028 12/06/2000 I002000397754I Page 3 of 11 Initials'. /nom'
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