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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 Loan 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 date, then Lender need not pay interest on unapplied funds.
<br />Lender niay hold such unapplied funds until Borrower makes payment to bring the Loan current, If Borrower does not do so
<br />within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such
<br />funds will be applied to 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 payments due under the
<br />Note and this 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 Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the
<br />Note, (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it
<br />became due. Any remaining amounts shall be applied first to late charges, second to any other amounts clue under this Security
<br />Instrument, and then to 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 pay
<br />any late charge clue, the Payment may be applied to the delinquent payment and the late charge. If more than one Periodic
<br />Paynicnt is Outstanding, lender may apply any payment received from Borrower to the repayment of the Periodic Payments if,
<br />and to the extent that, each payment can be paid in full, To the extent that any excess exists after the payinent is applied to the
<br />I',,][ payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments
<br />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 l-"tpone 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 undek the Note, until
<br />the Note is paid in full, a suns (the "Funds ") to provide for payment of amounts due for: (a) taxes and assessments and other
<br />items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments
<br />or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and
<br />(d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
<br />insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items," At origination or
<br />at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any,
<br />be escrowed by Borrower, and such clues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to
<br />Lender all notices of amounts to be paid tinder this Section. Borrower shall pay Lender the Funds for Escrow Items unless
<br />Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items, lender may waive Borrower's obligation to
<br />pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such
<br />waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of
<br />`uncls has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within
<br />such time period as Lender niay require. Borrower's obligation to make such payments and to provide receipts shall for all
<br />purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and
<br />agreenient" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower
<br />fails to pay the aniount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and
<br />Borrower shall then be obligated under Section 9 to repay to Lender any such aniount. Lender may revoke the waiver as to any
<br />or all Escrow Itenis at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay
<br />to Lender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender ii-lay, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the
<br />titre specified under RESPA, and (b) not to exceed the maximum arnount a lender can require under RESPA. Leader shall
<br />estiniate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Itenis
<br />or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall
<br />apply the Funds to pay the Escrow Items no later than the titre specified under RESPA. Lender shall not charge Borrower for
<br />holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Itenis, unless Lender pays
<br />Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in
<br />writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest
<br />or carvings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds, lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.
<br />NFBRASKA— Single Family— Fannie Mae/Fretlrlle Mac UNIFORM INSTRUMENT Form 3028 1 /01
<br />GREATLANO 0
<br />ITEM T26981-4 (0308 —MFRS (Page 4 nj 12 pages) To Order Call: 1.800. 530 -9393 O Fax: 616.791.1131
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