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<br />2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall
<br />pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note
<br />is paid in full, a sum (herein "Funds ") equal to one - twelfth of the yearly taxes and assessments (including
<br />condominium and planned unit development assessments, if any) which may attain priority over this Deed of
<br />Trust, and ground rents on the Property, if any, plus one - twelfth of yearly premium installments for hazard
<br />insurance, plus one - twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably
<br />estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable
<br />estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that
<br />Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an
<br />institutional lender.
<br />If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which
<br />are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution).
<br />Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender
<br />may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said
<br />assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to
<br />make such a charge. Borrower and Lender may agree in writing at the time of execution of this Deed of Trust
<br />that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the
<br />Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and
<br />debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as
<br />additional security for the sums secured by this Deed of Trust.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable
<br />prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount
<br />required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess
<br />shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly
<br />installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes,
<br />assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount
<br />necessary to make up the deficiency in one or more payments as Lender may require.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise
<br />acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its
<br />acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
<br />by this Deed of Trust.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender
<br />under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable
<br />to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal
<br />of the Note.
<br />4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's
<br />obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over
<br />this Deed of Trust, including Borrower's covenants to make payments when due. Borrower shall pay or cause
<br />to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which
<br />may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage ", and such other
<br />hazards as Lender may require and in such amounts and for such periods as Lender may require.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
<br />provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof
<br />shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form
<br />acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the
<br />terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of
<br />Trust.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
<br />make proof of loss if not made promptly by Borrower.
<br />If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance
<br />benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property or to the sums secured by this Deed of Trust.
<br />5. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
<br />Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or
<br />deterioration of the Property and shall comply with the provisions of any lease if this Deed of Trust is on a
<br />leasehold. If this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower shall
<br />perform all of Borrower's obligations under the declaration or covenants creating or governing the
<br />condominium or planned unit development, the by -laws and regulations of the condominium or planned unit
<br />development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in
<br />this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the
<br />Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse
<br />such sums, including reasonable attorney's fees, and take such action as is necessary to protect Lender's
<br />interest. If Lender required mortgage insurance as a condition of making the loan secured by this Deed of
<br />Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the
<br />requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or
<br />applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate, shall
<br />become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree
<br />to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting
<br />payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or/taly
<br />action hereunder. /J , Z
<br />Nebraska - Second Mortgage Page 2 of 5 Initial
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