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<br />200701363
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<br />The Funds shall be held in an institution whose deposits are insured by 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 />Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESP A. 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 defined under RESPA. Lender shall account to Borrower for
<br />the excess funds in accordance with RESP A. If there is a shortage of Funds held in escrow, as defined under RESP A,
<br />Lender shall notify Borrower as required by RES I' A, 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 defined 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 RESP A, but in no more than
<br />12 monthly payments.
<br />Upon payment in full of all sums secured hy this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments. charges, lines, and impositions attributahle tn
<br />the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the
<br />Property, if any. and Cnmmunity Association Dues. Fees. and Assessments, if any. To the extent that these items
<br />are Escrow Items, Borrower shall pay them in the manJlllr 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 which 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 1.
<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 connectinn with this Loan.
<br />S. Property Insurance. Borrower shall keep the improvements now existing or hereafter ereded 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 floods, for which Lender requires insurance. This insuranc!! 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 sent!!nC!!S can change during the term of the Loan. The insurance carrier providing
<br />the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice. which right shall
<br />not be exercised unreasonably. Lender may reqnire 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 remappings 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 flood zone
<br />determination resnlting from an objection hy Borrower.
<br />If Borrower fails 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. Therefore, 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 signi flcantly 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 dause, and shall name Lender as mortgagee and/or as an
<br />additional loss payee. Lender shall have the righllo hold the policies and renewal certmcates. If Lender requires,
<br />Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any
<br />form nfiosurance coverage, not otherwise required by Lender, for damage to. or destruclinn of, the Property. such
<br />policy shall include a standard mortgage clause and shall nallle Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event ofloss. Borrower shall give prompt nntice to the insurance carrier and Lender. Lender may makB
<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 econnmically feasible and l.ender's security is not lessened.
<br />During such repair and restoratinn period, Lender shall have the right to hold such insurance proceeds until Lender
<br />has had an opportunity to inspect such Property to ensure tht! work has been completed to Lender's satisfaction,
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<br />Borrower Initials;
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<br />NEBRASKAuSingle Fa ily-- annie Mae/Freddie Mac UNIFORM INSTRUMENT. MERS
<br />Form 3028 1/01 (02/ 1/07 Page 4 of 11
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