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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 200213193
<br />1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay
<br />when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due
<br />under the Note. Borrower shall also pay funds for Escrow Items personal to Section 3. Payments due under the Note and
<br />this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender
<br />as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all
<br />subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as
<br />selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided
<br />any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or
<br />(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
<br />as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment
<br />or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any
<br />payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to
<br />its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the
<br />time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not
<br />pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan
<br />current. If Borrower does not do so within a reasonable period of lime, Lender shall either apply such funds or return them
<br />to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note
<br />immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall
<br />relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and
<br />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 Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under
<br />the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which
<br />it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this
<br />Security Instrument, and then in reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to
<br />pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one
<br />Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic
<br />Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment
<br />is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due.
<br />Voluntary prepayments shall be applied first to any prepayment charges and then 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,
<br />until the Note is paid in full, a sum (the "Funds ") to provide for payment of amounts due for: (a) taxes and assessments and
<br />other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold
<br />payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section
<br />5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of
<br />Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At
<br />origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and
<br />Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower
<br />shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds
<br />for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may
<br />waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only
<br />be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any
<br />Escrow Items 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. Borrower's obligation to make such
<br />payments and to provide receipts 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 9. If Borrower is obligated to pay Escrow Items
<br />directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights
<br />under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such
<br />amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with
<br />Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required
<br />under this Section 3.
<br />NCBMASKA - $Ingle Family - Feonk MVe /Pm141e Mx L. \IFO0.N LYSTKUMENi Form M8 1101
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