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<br />to the Property against all claims and demands, subject to any encumbrances of record.
<br />TH15 SECURITY INSTRUMENT combines uniform covenants. for national use and non-uniform covenants with limited variations by
<br />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, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal
<br />nf, and interest nn, the debt evidenced 6y the Note and any prepayment charges end late charges due under the Note. Borrower shall also
<br />pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be' made in U.S.
<br />currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned
<br />to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one
<br />or more of the following forms, as selected by Lander: (a) .cash; Ib- money order; Ic1 vertified check, bank check, treasurer's check or
<br />cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or
<br />entity; or (d) Electronic Funds Transfer.
<br />Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be
<br />designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the
<br />payment or partial payments 'are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to
<br />bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the
<br />future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied
<br />as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower
<br />makes payment to bring the Loan current. If Borrower does not do sa vvithln g reastihabfe p~ri0d of time, Lender shall either apply such
<br />funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note
<br />immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower
<br />from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this
<br />Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by
<br />Lender shall be applied in the following order of priority: (a1 interest due under the Note; Ib- principal due under the Note; (c) amounts due
<br />under Section 3. Such payments shall 6e applied tv each Periodic Payment in the order in which it became due. Any remaining amounts
<br />shall be applied first to late charges, second to any other amounts due under this Security. Instrument, and then to reduce the principal
<br />balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquen# Periodic Paymen# which .includes a sufficient amount to pay any late
<br />charge due, the payment may be applied #n the delinquent payment and the late charge. If more than one Periodic Payment is outstanding,
<br />Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment
<br />can be paid in full: To the extent that any excess exists after the payment is applied to the full payment of one yr more Periodic .Payments,
<br />such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then. as
<br />described'in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or
<br />postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid
<br />in full, a sum (the "Funds") to provide for payment of amounts due far: la- taxes and assessments and other items which can attain priority
<br />over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; Ic1
<br />premiums for any and all insurance required by Lender under Section 5; and Id) Mortgage Insurance premiums, if any, or any sums payable
<br />by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These
<br />items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community.
<br />Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow
<br />Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds
<br />for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in wri#ing. In the event of such
<br />waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been
<br />waived by Lander and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may
<br />require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and
<br />agreement contained in this'5evurity Instrument, as the phrase'"covenant and agreement" is used in Section 9. If Borrower is obligated to
<br />pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its
<br />rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount.
<br />Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Sectien 15 and, upon such
<br />revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount Ia1 sufficient to permit Lender tv apply the Funds at the time specified
<br />under RESPA, and Ibl not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amoun# of Funds
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with
<br />Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if
<br />Lender is an institution whose deposits are so insured) or in any Federal Home Lvan Bank. Lender shall apply the Funds to pay the Escrow
<br />Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law
<br />permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the
<br />Funds, Lender shall nvf be required to pay Borrower any interest br earnings on the Funds: Borrower and Lender can agree in writing,
<br />however, #hat in#erest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as
<br />required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower far the excess funds in
<br />accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required
<br />by RESPA, and Borrower shall pay to Lender the' amount necessary to make up the shortage in accordance with RESPA, but in no more
<br />than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as
<br />required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in
<br />no more than 12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by
<br />Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to 'the Property which can
<br />attain priority aver this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues,
<br />- Fees, end Assessments,~F~ny-qtr-the-extent-that~the-s'~itams ors Escrow Items, Borrower shall pay ffiem in the manner providi~d in
<br />Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower; Ia1 agrees in writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so Ivng as Borrower is performing such
<br />agreement; Ib) contests the lien in goad faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion
<br />operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c-
<br />secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which can attain priority over this Sevurity Instrument, Lender may give
<br />Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one
<br />or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower tv pay aone-time charge for a real estate tax verification and/or reporting service used by Lender in
<br />connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property .insured against loss
<br />by fire, hazards included within the term. "extended coverage," and any other hazards including, but not limited to, earthquakes and floods,
<br />for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) end for the periods
<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
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