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200810349
<br />and sell the Property; and to take any action required of Lender including, but not limited to. releasing or canceling
<br />this Security Instrument.
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Property is unencumbered, except for encumbrances ol'record. Borrowc-
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record.
<br />1'I IIS SECURITY INSTRUML'N'f combines unilbrm covenants lur national use and non - uniform covenants with
<br />limited variations by ,jurisdiction to constitute a uniform security instrument covering real property.
<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
<br />interest 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
<br />payment, together with the principal and interest as set lbrth in the Note and any late charges, a sum for (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br />Property, and (c) premiums tirr insurance required under paragraph 4. In any year in which the Lender must pay a.
<br />mortgage insurance premium to the Secretary of'] lousing and Urban Development ( "Secretary "), or in any year in
<br />which such premium would have been required if Lender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a sum fur the annual mortgage insurance premium to be paid by Lender to the Secretary,
<br />or (ii) a monthly charge instead ofa mortgage insurance premium ifthis Security Instrument is held by the Secretary,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "I.scrow Items" and the sums paid to Lender are called "kscrow 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 F'state Settlement Procedures
<br />Act of 1974, 12 IJ.S.C. §2601 et scU. and implementing regulations, 24 CF'R Part 3500, as they may be amended
<br />from lime to time ( "RLI'SPA" ), except that the cushion or resc•vc permitted by RESPA for unanticipated disbursements
<br />or disbursements before the Borrower's payments are available in the account may not be based on amounts due liar
<br />the mortgage insurance premium.
<br />I f the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower liar the excess funds as required by RF;SPA, I I'the amounts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br />up the shortage as permitted by RESPA.
<br />'rho I.;scrow Funds are pledged as additional security for all sums secured by this Security Instrument. If
<br />Borrower tenders to Lender the full payment ofall such sums. Borrower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and bender shall promptly rel'und any excess funds to Borrower.
<br />Immediately prior to a foreclosure sale ol' the Property or its acquisition by Lender. Borrower's account shall he
<br />credited with any balance remaining for all installments for items (a), (b). and (c).
<br />3. Application of Payments. All payments under paragraphs I and 2 shall be applied by Lcndcr as follows:
<br />FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the monthly mortgage insurance premium;
<br />SI 'CON D, to any taxes, special assessments. leasehold payments or ground rents, and tire. flood and other hazard
<br />insurance premiums, as required;
<br />THIRD, to interest due under the Note;
<br />FOL1R'I'F1, to amortization of the principal of the Note; and
<br />FIFTI1. to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including tire.
<br />for which Lcndcr requires insurance. This insurance shall be maintained in the amounts and fur the periods that
<br />Lender requires. Borrower shall also insure all improvements on the Propc•ty, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with
<br />companies approved by Lender. 'rho insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of', and in a form acceptable to. Lender.
<br />In the event of'loss, Borrower shall give Lender immediate notice by mail. Lender may make prool'ofloss if'not
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to bender, instead of to Borrower and to Lender jointly, All or any part of the insurance
<br />proceeds may be applied by bender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date otthe monthly payments which are referred to in paragraph 2, or
<br />change the amount of'such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other translcr of title to the Property that extinguishes the
<br />indebtedness, all right. title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall Occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution of this Security Instrument (or within sixty days ofa later sale or transfer ol'the Property)
<br />FHA NEBRASKA DEED OF TRUST - MERS DocMagic C rdWMR, 800- 649 -1362
<br />6/96 Page 2 of 7 www.docmagic.com
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