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<br />200608296
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<br />The Funds shall be held in an institution whose deposits are Insured hy a federal agency, Instrumentality, or
<br />entity (Including Lender, if Lender Is an Institution whose deposits are so Insured) or In any Federal Home Loan
<br />Banle Lender shall apply the Funds to pay the Escrow Items no later than the tIme specified under RESPA. Lender
<br />shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifYing
<br />the Escrow Items, unless Lender pays Borrower Interest on the Funds and Applicable Law permits Lender to make
<br />such a charge. Unless an agreement Is made in writing or Applicable Law requires interest to be paid on the Funds.
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree
<br />In writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an
<br />annual accounting of the Funds as required by RESP A.
<br />If there is a surplus of Funds held In escrow, as dermed under RESP A, Lender shall account to Borrower for
<br />the excess funds In accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA,
<br />Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make
<br />up the shortage In accordance with RESPA, but in no more than 12 monthly payments. If there Is a deficiency of
<br />Funds held In escrow, as dermed under RESPA, Lender shall notifY Borrower as required by RESPA, and Borrower
<br />shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but In no more than
<br />12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shaH promptly refund to Borrower
<br />any Funds held by Lender,
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to
<br />the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the
<br />Property, If any, and Community Association Dues, Fees, and Assessments, If any. To the extent that these items
<br />are Escrow Items, Borrower 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:
<br />(a) agrees in writing to the payment of the obligation secured by the lien In a manner acceptable to Lender, but only
<br />so long as Borrower Is performing such agreement; (b) contests the lien In good faith by, or defends against
<br />enforcement of the lien In, legal proceedings which In Lender's opinion operate to prevent the enforcement of the lien
<br />while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder
<br />of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property Is subject to a lien wblch can attain priority over this Security Instrument,
<br />Lender may give Borrower a notice IdentifYing the lien. Within 10 days of the date on which that notice Is given,
<br />Borrower shall satisfY the lien or take one or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service
<br />used by Lender in connection with this Loan.
<br />S. Property 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 any other hazards
<br />Including, but not limited to, earthquakes and fioods, for which Lender requires Insurance. This Insurance shall be
<br />maintained in the amounts (Including deductible levels) and for the periods that Lender requires. What Lender
<br />requires pursuant to the preceding sentences can change during the term of the Loan. The Insurance carrier providing
<br />the Insurance sball be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, whicb right shall
<br />not be exercised unreasonably. Lender may require Borrower to pay, In connection with this Loan, either: (a) a one-
<br />time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone
<br />determination and certification services and subsequent charges each time remapplngs or similar changes occur which
<br />reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of
<br />any fees Imposed by the Federal Emergency Management Agency In connection with the review of any fiood zone
<br />determination resulting from an objection by Borrower.
<br />If Borrower falls to maintain any of the coverages described above, Lender may obtain Insurance coverage, at
<br />Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount
<br />of coverage. Tberefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's
<br />equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater
<br />or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the Insurance coverage so
<br />obtained might signiflcanlly exceed the cost of Insurance that Borrower could have obtained. Any amounts disbursed
<br />by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These
<br />amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such Interest,
<br />upon notice from Lender to Borrower requesting payment.
<br />All Insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br />disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an
<br />additional loss payee. Lender shall have the right 10 hold the policies and renewal certificates. If Lender requires,
<br />Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any
<br />form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such
<br />policy shall Include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event ofloss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br />proof of loss If not made promptly by Borrower. Unless Lender and Borrower otherwise agree In writing, any
<br />insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
<br />or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
<br />During such repair and restoration period. Lender shall have the right to hold such Insurance proceeds until Lender
<br />has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction,
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<br />Borrower Initials: fA 8. /!J. If, 13
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<br />NEBRASKA..Single Famiiy--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS
<br />Form 302B 1/01 Page 4 of 10
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<br />DocMsf/;c 4~ 800-649-1362
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