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<br />LOAN N0.479656
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants
<br />with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br />Borrower and Lender covenant and agree as follows:
<br />UNIFORM COVENANTS.
<br />1. Payment of Principal, Interest, and Late Charge. Borrower shall pay when due the principal of,
<br />and interest on, the debt evidenced by the Note and late charges due under the Note,
<br />2. Monthly Payments of Taxes, Insurance, and Other Charges. Borrower shall incude in each
<br />monthly payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a)
<br />taxes and special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on
<br />the Property, and (c) premiums for insurance required by Paragraph 4. In any year in which the Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing 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 for the annual mortgage insurance premium to be paid by Lender to the Secretary,
<br />or (ii) a monthly charge instead of a mortgage insurance premium if this 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
<br />Items are called "Escrow Items" and the sums paid 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
<br />the maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement
<br />Procedures Act of 1974, 12 U.S.C. 2601 et seq. and implementing regulations, 24 C.F.R. Part 3500, as they may be
<br />amended from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements or disbursements before the Borrower's payments are available in the account may not be based on
<br />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 RESPA,
<br />Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by
<br />Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require
<br />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
<br />Borrower tenders to Lender the full payment of all 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 Lender shall promptly refund any excess funds to Borrower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />credited with any balance remaining far all installments far items (a), (b), and (c).
<br />3. Application of Payments. All payments under Paragraphs 1 and 2 shall be applied by Lender as
<br />follows:
<br />FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge
<br />by the Secretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, leasehold payments, ar ground rents, and fire, flood, and
<br />other hazard insurance premiums, as required;
<br />THIRI9, to interest due under the Note;
<br />FOURTH, to amortization of the principal of the Nate; 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,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire,
<br />for which Lender requires insurance, This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires, Harrower shall also insure all improvements nn the Property, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried
<br />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 of loss, Harrower shall give Lender immediate notice by mail. Lender may make
<br />proof of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized
<br />and directed to make payment for such loss directly to Lender, instead of to Borrower and to Lender
<br />jointly. All or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the
<br />reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent
<br />NEBRASKA FHA DOT 01196 (page 2 of 7)
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