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200904155
<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 pxapexty. 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." Borrower understands and
<br />agrees that MFRS holds only legal title to the interests granted by Borrower in this Security Instrument; but, if necessary
<br />to comply with law or custom, MFRS (as nominee for Lender and Lender's successors and assigns) has the right: to
<br />exercise any or all of those interests, including, but not limited to, the right to foxeclose and sell the Property; and to take
<br />any action required of Lendex including, but not limited to, releasing and canceling this Security Instrument.
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant
<br />and convey the Property and that the Property is unencumbexed, except for encumbrances of record. Borrower waxrants
<br />and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for 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 agxee as follows:
<br />1. Paynnent of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on,
<br />the debt evidenced by the Note and late charges due undex 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 (c)
<br />premiums for insurance required under Paragraph 4. In any year in which the Lender must pay a mortgage insurance
<br />premium tv 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 insuxance premium tv be paid by Lender to the Secretary, ox (ii) a monthly charge instead of a
<br />mortgage insurance premium if this Security Instrument is held by the Secretary, in a xeasanable 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 of
<br />1974, 12 U.S.C. § 2601 et sec .and implementing regulations, 24 CFR Part 3500, as they may be amended from time to
<br />time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements
<br />before the Borrower's payments are available in the account may not be based an amounts due for the mortgage insurance
<br />premium.
<br />If the amounts held by Lendex 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 RESPA.
<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
<br />obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrowex. Immediately prior to a
<br />foreclosure sale of the Property or its acquisitipn by Lender, Borrower's account shall be credited with any balance
<br />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 />Fixst, to the mortgage insurance premium to be paid by Lender to the Secretary ar to the monthly charge by the
<br />Secxetary 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 pxemiums, as required;
<br />Thixd, 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 Nate.
<br />GV2171-2 (696) Page 2 of 7 FHA lvebraska Deed of 'c`rust
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