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<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or
<br />entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan
<br />Bank. Lender shall apply the Funds to pay the Escrow items no later than the time specified under RESPA. Lender
<br />shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying
<br />the Escrow hems, unless Lender pays Borrower interest nn the Funds and Applicable Law perrrrits Lender to make
<br />such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree
<br />in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an
<br />atrunal accounting of the Funds as required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for
<br />the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under R.ESPA,
<br />Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make
<br />up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of
<br />Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower
<br />shall pay to Lender the amount necessary to make up the deficiency in accordance with ItESPA, but in no more than
<br />l2 motrthly payments.
<br />Upon payment in full of all suers secured by this Security instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to
<br />the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the
<br />Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items
<br />are Escrow Items, Harrower shall pay them in the manner provided in Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security lnstrument unless Borrower:
<br />(a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only
<br />so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against
<br />enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien
<br />while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder
<br />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 ever this Security Instrument,
<br />Lender may give Borrower a notice identifying the lien. Within 10 days of the date nn which that notice is given,
<br />Borrower shall satisfy the lien or take one or more of die actions set forth above in this Section 4.
<br />Lender may require Borrower to pay aone-time charge for a real estate tax verification and/or reporting service
<br />used by Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards
<br />including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be
<br />maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender
<br />requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing
<br />the insurance shall be chosenby Borrower subject to Lender's right to disapprove Borrower's choice, which right shall
<br />not be exercised unreasonably. Lender may require Harrower to pay, in connection with this Loan, either: (a) a one-
<br />time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone
<br />deternnation and certification services and subsequent charges each time remappings or similar changes occur which
<br />reasonably might affect such determnation or certification. Borrower shall also be responsible for the payment of
<br />any (errs imposed by the Federal Emergency Management Agency in connection with the xeview of any flood zone
<br />determination resulting firom an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option and Borrower's expense. Lender is under nn obligation to purchase any particular type or amount
<br />of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Harrower, Horrower's
<br />equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater
<br />nr lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so
<br />obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed
<br />by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These
<br />amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest,
<br />upon notice from Lender to Horrawer requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
<br />disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an
<br />additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires,
<br />Harrower shall promptly give to Lender all receipts of paid premiurri`ti and renewal notices. If Borrower obtains any
<br />form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such
<br />policy shall include a standard mortgage clause and shall Warne Lender as mortgagee and/or as an additional loss
<br />payee.
<br />In the event of loss, Boxrower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br />proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any
<br />insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
<br />or repair of the Property, if the restoratiotr or repair is economically feasible and Lender's security is not lessened.
<br />During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until bender
<br />has had an opportunity to inrspect such Property to ensure the work has been completed to Lender's satisfaction,
<br />Barrawer Initials: ~~
<br />NEBRASKA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic ~ aoo-sas rssz
<br />Form 302$ 1/01 Page Q of 11 www.dacmagic.cam
<br />Ne3U28.mzd.wtil
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