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<br />200709705
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<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances,
<br />and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security
<br />Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
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<br />BORROWER COVENANTS that Borrower is lawfully seised ofthe estate hereby conveyed and has the right to grant
<br />and convey the Property and that the Property is unencumbered, except for encumbrances ofrecord. Borrower warrants
<br />and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
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<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-unifonn covenants with
<br />limited variations by jurisdiction to constitute a uniform security instrument covering real property.
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest
<br />on, the debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Taxes, Insurance, and Other Charges. Borrower shall include in each monthly payment,
<br />together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special
<br />assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and
<br />(c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a mortgage insurance
<br />premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in which such premium would
<br />have been required if Lender still held the Security Instrument, each monthly payment shall also include either: (I) a sum
<br />for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a
<br />mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to be determined
<br />by the Secretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid
<br />to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act
<br />of 1974,12 U.S.c. S 2601 ~ ~ and implementing regulations, 24 CFR Part 3500, as they may be amended from time
<br />to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or
<br />disbursements before the Borrower's payments arc available in the account may not be based on amounts due for the
<br />mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are
<br />not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the
<br />shortage as permitted by RESP A.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower
<br />tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for
<br />all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated
<br />to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure
<br />sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all
<br />installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIRD, to interest due under the Note;
<br />FOURTH, to amortization of the principal of the Note; and
<br />FIFTH, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including tire, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires.
<br />Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against
<br />loss by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender.
<br />The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor o( and in
<br />a form acceptable to, Lender.
<br />In the event ofloss, Borrower shall give Lender ilmnediate notice by maiL Lender may make proof ofIoss if not made
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such
<br />loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part oftlle insurance proceeds may be
<br />applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument,
<br />tirst to any delinquent amounts applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the
<br />restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not extend or postpone
<br />the due date ofthe monthly payments which are referred to in paragraph 2, or change the amount of such payments. Any
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<br />FHA NEBRASKA OEEJ) OF TRUST
<br />(R&A) RA0207793 - fmers.ne - rev. 11/14/05
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<br />6/96
<br />(Pace 2 of Ii pages)
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<br />RfJ-?
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