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<br />200700352
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<br />450611619
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all
<br />payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due
<br />under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be
<br />applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied
<br />first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the
<br />principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a
<br />sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late
<br />charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from
<br />Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full.
<br />To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic
<br />Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to
<br />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
<br />Note shall not extend or postpone 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
<br />under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for:
<br />(a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or
<br />encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for
<br />any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any
<br />sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with
<br />the provisions of Section 10. These items are called "Escrow Items." At origination or at any time durin g the term
<br />of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed
<br />by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to
<br />Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow
<br />Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may
<br />waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver
<br />may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the
<br />amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender
<br />requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may
<br />require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to
<br />be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is
<br />used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails
<br />to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount
<br />and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke
<br />the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon
<br />such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this
<br />Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply
<br />the Funds at the time specified under RESP A, and (b) not to exceed the maximum amount a lender can require
<br />under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable
<br />estimates of expenditures 0 ffuture Escrow Items 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,
<br />or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home
<br />Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA.
<br />Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br />verifYing the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits
<br />Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be
<br />paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower
<br />and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br />without charge, an annual accounting of the Funds as required by RESPA.
<br />
<br />NEBRASKA--Single Fam ilyuFannie MaelFreddie Mae UNIFORM INSTRUMENT
<br />DOCUI NE4
<br />OOCU1NE4.VTX 08/25/2005
<br />
<br />Form 3028 1101
<br />
<br />(page 4 of 13 pages)
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