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<br />200902264
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<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances and
<br />fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of
<br />the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal
<br />title to the interests granted by Borrower in this Security Instrument; but, if necessary to comply with law or custom, MERS, (as nominee
<br />for Lender and Lender's successors and assigns), has the right: to exercise any or all of those interests, including, but not limited to, the
<br />right to 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.
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<br />BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and
<br />convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend
<br />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-uniform covenants with limited
<br />variations by jurisdiction to constitute a uniform security instrument covering real property.
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<br />Borrower and Lender covenant and agree as follows:
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<br />UNIFORM COVENANTS.
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<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on, the debt
<br />evidenced by the Note and late charges due under the Note.
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<br />2. Monthly Payment of Taxes, Insurance and Other Charges. Borrower shall include in each monthly payment, together with
<br />the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special assessments levied or to be levied
<br />against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for insurance required under paragraph 4.
<br />In any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban Development
<br />("Secretary"), or in any year in which such premium would have been required if Lender still held the Security Instrument, each monthly
<br />payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a
<br />monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to be
<br />determined by the Secretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid to
<br />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 maximum amount
<br />that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974,12 U.S.c. Section 260]
<br />el seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time ("RESPA"), except that the cushion
<br />or reserve permitted by RESPA for unanticipated disbursements or disbursements before the Borrower's payments are available in the
<br />account may not be based on amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESP A, Lender shall account to
<br />Borrower for the excess funds as required by RESP A. If the amounts of funds held by Lender at any time are not sufficient to pay the
<br />Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower tenders to
<br />Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all installment items
<br />(a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and
<br />Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by
<br />Lender, Borrower's account shall be credited with any balance remaining for all installments for items (a), (b), and (c).
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<br />3. Application of Payments. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />Eirst, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary instead
<br />of the monthly mortgage insurance premium;
<br />Second, 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 />E.aw:1h, to anlortization of the principal ofthe Note; and
<br />Eifth, to late charges due under the Note.
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<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in
<br />existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance.
<br />This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all improvements
<br />on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All
<br />insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall
<br />include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event ofloss, Borrower shall give Lender immediate notice by mail. Lender may make proof ofloss if not made promptly
<br />by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender,
<br />instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied by Lender, at its option, either
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<br />FHA Nebraska Deed of Trust with MERS - 4196
<br />IDS, Inc.
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<br />Page 2 of6
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<br />Amended 7/04
<br />Initials U--~
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