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<br />200511898
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<br />fails to pay the amount due for an Escrow Itcm, Lcndcr may cxcrcise its rights under Section 9 and pay such amount and
<br />Borrower shall then he obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waivcr as to any
<br />or all Eserow Items 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 />Lcnder may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the
<br />time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall
<br />estimate the amount of Funds due on the hasis of current data and reasonable estimates of expenditures of future Escrow Items
<br />or otherwise in accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a fedcral agency, instrumentality, or entity
<br />(including Lendcr, 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 time specified under RESPA. Lender shall not charge Borrower for
<br />holding and applying the Funds, annually analyzing the escrow account, or verifying the Eserow Items, unless Lender pays
<br />Borrower interest on thc 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 he required to pay Borrower any interest
<br />or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Punds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESP A, Lender shall account to Borrower for the excess
<br />funds in accordance with RESPA. If there is a shortage of Punds held in escrow, as defined under RESPA, Lender shall notify
<br />Borrower as required by RESP A, and Borrower shall pay to Lender the amount necessary to make up the shortage in
<br />accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as
<br />defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount
<br />necessary to make up the deficiency in accordance with RESPA, but in no morc than 12 monthly payments.
<br />Upon payment in full of all sums secured hy this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the
<br />Properly which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any,
<br />and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower
<br />shall pay them in the manner provided in Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower
<br />is perfonning such agreement; (b) contests the lien in good faith hy, or defends against enforcement of the lien in, legal
<br />proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but
<br />only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender
<br />suhordinating the lien to this Security Instrument. If Lender detenllines that any part of the Property is subject to a lien which
<br />can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within to days of
<br />the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this
<br />Section 4.
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used hy
<br />Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss hy fire, hazards included within the tenn "extended coverage," and any other hazards including, but not
<br />limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts
<br />(including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding
<br />sentences can change during the tenn of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower
<br />subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may
<br />require Borrower to pay, in connection with this Loan, either: (a) a (JOe-time charge for flood zone detennination, certification
<br />and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges
<br />each time remappings or similar changes occur which reasonably might affect such detenllination or certification. Borrower
<br />shall also be responsible for the payment of any fees imposed hy the Federal Emergency Management Agency in connection
<br />with the review of any flood zone detenllination resulting from an objection hy Borrower.
<br />If Borrower fails to maintain any of the coverages described ahove, Lender may obtain insurance coverage, at Lender's
<br />option and Borrower's expense. Lender is under no ohligation to purchase any particular type or amount of coverage.
<br />Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or
<br />the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was
<br />previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the
<br />cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall hecome
<br />additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the
<br />date of dishursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required hy Lender and renewals of such policies shall be subject to Lender's right to disapprove
<br />such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee.
<br />Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. If Borrower obtains any fonn of insurance coverage, not otherwise
<br />required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
<br />shall name Lender as mortgagee and/or as an additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />loss if not made promptly hy Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, shall he applied to restoration or repair of the Property, if the
<br />restoration or repair is economically feasihle and Lender's security is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to
<br />ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly.
<br />Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the
<br />work is completed. Unless an agreement is made in writing or Applicahle Law requires interest to be paid on such insurance
<br />proceeds, Lender shall not he required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or
<br />other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of
<br />Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance
<br />proceeds shall he applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any,
<br />paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
<br />matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a
<br />claim, then Lender may negotiate and seule the claim. The 30-day period will hegin when the notice is given. In either event,
<br />or if Lender acquires the Property under Section 22 or otherwise, Borrower herehy assigns to Lender (a) Borrower's rights to
<br />any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any
<br />other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance
<br />policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the
<br />insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,
<br />whether or not then dUe.
<br />6. Occupancy. Borrower shall occupy, estahlish, and use the Property as Borrower's principal residence within 60 days
<br />after the execution of this Security Instrwnent and shall continue to occupy the Property as Borrower's principal residence for
<br />at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br />unreasonably withheld, or unless extenuating circumstances exist which are heyond Borrower's control.
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<br />Bankors Systom., Inc.. St. Cloud, MN Form MD-l-NE 8/1712000
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<br />(pafle 3 oj 7 pages)
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<br />t;!fm 30~y~
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<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
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