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<br />200808157
<br />
<br />15518049
<br />
<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights,
<br />appurtenances, rents, royalties, mineral, oil, and gas rights and profits, water rights and stock and fixtures now or hereafter a part
<br />of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to
<br />in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests
<br />granted by Borrower in this Security Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lender
<br />and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to
<br />foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling this
<br />Security Instrument.
<br />BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to
<br />mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on, the
<br />debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payments 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, an installment of any (a) taxes and special
<br />assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums
<br />for insurance required by paragraph 4.
<br />Each montWy installment for items (a), (b), and (c) shall equal one-twelfth of the annual amounts, as reasonably
<br />estimated by Lender, plus an amount sufficient to maintain an additional balance of not more than one-sixth of the estimated
<br />amounts. The full annual amount for each item shall be accumulated by Lender within a period ending one month before an item
<br />would become delinquent. Lender shall hold the amounts collected in trust to pay items (a), (b), and (c) before they become
<br />delinquent.
<br />If at any time the total of the payments held by Lender for items (a), (b), and (c), together with the future monthly
<br />payments for such items payable to Lender prior to the due dates of such items, exceeds by more than one~sixth the estimated
<br />amount of payments required to pay such items when due, and if payments on the Note are current, then Lender shall either refund
<br />the excess over one-sixth of the estimated payments or credit the excess over one-sixth of the estimated payments to subsequent
<br />payments by Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a), (b), or (c) is
<br />insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on or
<br />before the date the item becomes due.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her
<br />designee. In any year in which the Lender must pay a mortgage insurance premium to the Secretary, each monthly payment shall
<br />also include either: (i) an installment of the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a
<br />montWy charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary. Each monthly
<br />installment of the mortgage insurance premium shall be in an amount sufficient to accumulate the full annual mortgage insurance
<br />premium with Lender one month prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this
<br />Security Instrument is held by the Secretary, each montWy charge shall be in an amount equal to one-twelfth of one-half percent of
<br />the outstanding principal balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall
<br />be credited with the balance remaining for all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited
<br />with any balance remaining for all 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 Secretary
<br />instead of the montWy mortgage insurance premium;
<br />SecQ.l.lQ, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />Third, to interest due under the Note;
<br />
<br />FHA Nebraska Deed Of Trust - 2/91
<br />@jl 391.4
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