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<br />agreement contained in this Security 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 Section ] 5 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 (a) sufficient to permit Lender to apply the Funds at the time
<br />specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount
<br />of Funds 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, ar entity (including
<br />Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay
<br />the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds,
<br />annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable
<br />Law 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 not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing,
<br />however, that interest 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 for the excess funds in
<br />accordance with RESPA. if there is a shortage of Funds held in escrow, as detned 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
<br />can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association
<br />Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in
<br />Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing
<br />to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such
<br />agreement; (b) contests the lien in good faith by, or defends against enforcement ofthe 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 Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Within I O 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 to pay aone-time charge for a real estate tax verification and/or reporting service used by
<br />Lender in connection with this Loan.
<br />S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
<br />loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and
<br />floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the
<br />periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which
<br />right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge
<br />for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification
<br />services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or
<br />certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in
<br />connection with the review of any flood zone determination resulting from an objection by Borrower.
<br />If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and
<br />Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall
<br />cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk,
<br />hazard or liabil ity and might provide greater or lesser coverage than was previously in affect. Borrower acknowledges that the cost of the
<br />insurance coverage so 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 amounts shall bear
<br />interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to .Borrower
<br />requesting payment.
<br />All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such
<br />policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional lass payee. Lender shall
<br />have the right to hold the policies and renewal certificates. if Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br />premiums and renewal notices. 1f Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or
<br />destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an
<br />additional loss payee.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not
<br />made promptly by Borrower. l]nless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the
<br />underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is
<br />economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold
<br />such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's
<br />satisfaction, provided that such inspection shat l be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a
<br />single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
<br />requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />proceeds, Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be
<br />the sole obligation of Borrower, If the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />insurance proceeds shall be applied to the sums secured by this Security instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
<br />If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If
<br />Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may
<br />negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property
<br />under Section 22 ar otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to
<br />exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any
<br />refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to
<br />NEBRASKA -Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MFRS Form 3028 1/01
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