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<br />200610925
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<br />, fails to pay the amount 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 amount. Lender may revoke the waiver as to any
<br />or all Escrow 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 />Lender 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 tbe basis of current data and reasonable estimates of expenditures of future Escrow Items
<br />or otberwise in accordance with Applicable Law.
<br />The Funds shall be held in an instirution whose deposits are insured by a federal agency, instrwnentality, or entity
<br />(including Lender, if Lender is an institution wbose deposits arc so insured) or in any Pederal Home Loan Bank. Lender sball
<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 tbe escrow account, or verifying tbe Escrow Items, unless Lender pays
<br />Borrower interest on the Funds and Applicable Law permits Lender to make sucb a charge. Unless an agreement is made in
<br />writing or Applicable Law requires interest to be paid on the Funds, Lender sball not be 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 Funds. Lender
<br />sball 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 wltb RESPA. If tbere is a sbortage of Funds beld in escrow, as defined under RESPA, Lender sball notify
<br />Borrower as required by RESP A, and Borrower shall p~W to Lender the amouut ne0cssary to)llak~ up thesbortage in
<br />accordance \'lith RESP A, but in no more than 12 monthly payments, If there l~ a deficiency of Funds held in escrow, as
<br />defined under RESPA, Lender shall notify Borrower as required by RESPA, and !3orrnwer shall pay to Lender the amount
<br />necessary to make up the deficiency in accordance with RESPA, but in no more than I.}: monthly payments.
<br />Upon payment in full of all swns secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds beld by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, cbarges, fines, and impositions attributable to the
<br />Property which can attain priority over this Security Instrwnent, leasebold payments or ground rents on the Property, if any,
<br />and Community Association Dues, Fees, and Assessments, if any. To tbe extent that tbese 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 Instrwnent unless Borrower: (a) agrees
<br />in writing to the payment of tbe obligation secured by the lien in a manner acceptahi(" to Lender, but only so long as Borrower
<br />is perfoffiling such agreement; (b) contests the lien in good faith by, 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 arc pending, but
<br />only until sucb proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender
<br />subordinating the lien to this Security Instrument. If Lender detennines 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 10 days of
<br />tbe 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 cbarge for a real estate tax verification and/or reporting service used by
<br />Lender in connection with this Loan.
<br />5. Property Insurance. Borrower sball keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the ternl "extended coverage," and any other hazards including, but not
<br />limited to, earthquakes and floods, for wbicb 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 term of the Loan. The insurance carrier providing tbe insurance shall be chosen by Borrower
<br />subject to Lender's rigbt to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may
<br />require Borrower to pay, in connection with ihis Loan, either: (a) a one-time cha~ for flood zone determination. ce 'le,atirm.. ..
<br />.' ,- ,. ' " ,. ". --, ~ ' , , ~._' :-'_.. . ., ""-.,- -.., ",,;:- ' , ,.''':''''''''.;).;''':~'''''.''. :",,<-::,-<:~;,
<br />.........--~.u5 -'~' .~~~",- .n:. J '" "c rges .
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<br />each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower
<br />shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection
<br />with the review of any flood zone determination resulting from an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's
<br />option and Borrower's expense. Lender is under no obligation 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 tbat Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become
<br />additional debt of Borrower secured by this Security Instrument. Tbese amounts ~:~all bear interest at the Note rate from the
<br />dale of disbursement and shall be payable, with such interest, upon notice from Lend,,:- 10 Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies sb.ll.T he subject to Lender's right to disapprove
<br />such policies, shall include a standard mortgage clause, and shall name Lender as m(~!tgagee and/or as an additional loss payee.
<br />Lender shall have the rigbt to bold tbe policies and renewal certificates. If Lenderl\~quires, Borrower shall promptly giye to
<br />Lender all receipts of paid premiums and renewal notices. If Borrower obtains af\ylonn of insurance coverage, not otherwise
<br />required by Lender, for damage to, or destruction of, the Property, such policy ~!lall include a standard mortgage clause and
<br />shall name Lender as mortgagee and/or as an additional loss payee.
<br />In tbe event of loss, Borrower shall give prompt notice to the insurance Cai;:t~r and Lender. Lender may make proof of
<br />loss if not made promptly by Borrower. Unless Lender and Borrower otherwise .lgree in writing, any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, shall be applied t.; testoration or repair of thc Property, if the
<br />restoration or repair is economically feasible 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 tbe repairs and restoration in a single payment or in a series of progress payments as the
<br />wotk L~ completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance
<br />proceeds, Lender shall not be 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 sball be applied to the swns secured by this Security Instrwnent, whetber or not then due, with the excess, if any,
<br />paid to Borrower. Such insurance proceeds shall be applied in tbe 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 settle the claim. The 30-day period will begin when the notice is given. In either event,
<br />or if Lender acquires the Property under Section 22 or otherwise, Borrower bereby 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 premiwns paid by Borrower) under all insurance
<br />policies covering th~ Property, .insofar as such rights are applicable to the co,:erflge of the Property: Lende~ may use the
<br />lllsurance proceeds eIther to repair or restore the Property or to pay amounts unpald"under the Note or thlS Secunty Instrument,
<br />whether or not tben due. ..:..
<br />6. Occupancy. Borrower shall occupy, establish, and use the Property as Bdrrower's principal residence within 60 days
<br />after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for
<br />at least one year after tbe date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be
<br />unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
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<br />Bank... Sy.t.m.,lnc" St. Cloud, MN Form MD.' NE 8/t7/2000
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<br />(JXlge 3 of 7 pages)
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<br />Form 3028 1/01
<br />t~! F IJ /11 -2-
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<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
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