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<br />Lender may, at any time, collect and hold amounts for lrscrow Items in art aggregate amount not to exceed the maximum
<br />amount that may be required tot Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12
<br />U.S.C. § 2601 et seg. artd implementing regulations, 24 CFR Fart 35!)0, as they may be amended from tune to time
<br />("RESPA"), except that the cushion or reserve permitted by RESPA far unanticipated disbursements or disbursements before the
<br />Borrower's payments are available in the account may not be based on amounts due far the rnnrtgage insurance premium.
<br />If the amounts held by Lender far Escrow hems exceed the amounts permitted to be held by RESPA, Lender shall account to
<br />Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are not suflteient to
<br />pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as permitted by
<br />RESPA.
<br />The Escrow Funds are pledged as additional security far all sums secured by this Security Instrument. if Borrower tenders to
<br />Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all installment
<br />items (a), (b), and (c) and any mortgage insurance premium installtttent that Lender has not became obligated to pay tv the
<br />Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the
<br />Property or its acquisition by Lender, Borrower's account shall be credited with any balance ternaining For all installments far
<br />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 />First, to the mortgage insurance premium to be paid by Lender to t[re Secretary or to the monthly charge by the Secretary
<br />instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments nr ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />Third, to interest due under the Nate;
<br />Fourth, to arnortizalion of the principal of the Note; and
<br />Fifth, to late charges due larder the Nvte.
<br />d. Fire, Flood and Other Ilazard Insurance. Bonvwer shall insure all improvements on the Property, whether now in
<br />existence or subsequently erected, against any hazards, casualties, and cvutirtgencies, including fire, for which Lendet requires
<br />insurance. This insurance shall be maintained in the amounts and far the periods that Lender requires. Borrower shall also insure
<br />all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent
<br />required by the Secretary. All insurance shall be carried with companies approved by Lender. 't'he insurance policies and any
<br />renewals shall be held by Lender and shall include loss payable clauses in favor af, artd in a farm acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
<br />promptly by Borrower, laach insur~attce company concerned is hereby authorized and directed to make payment for such loss
<br />directly to Lender, instead of to Borrower attd to Lender jointly. AlI yr any part of the insurance proceeds may be applied by
<br />Lender, at its option, either (a) to the reduction of the indebtedness under klte Nate and this Security Instrument, ftrst to arty
<br />delinquent amounts applied in the order in Paragraph 3, and then tv prepayment of principal, or (b) to the xestaration of repair of
<br />the damaged Property. Any applieativn of the proceeds to the principal shall not extend or postpone the due date of the tnanthIy
<br />payments which are referred to in Paragraph 2, vt change the amount of such payments. Any excess insurance proceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrumert shall be paid to the entity
<br />legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title tv the Property that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />GV2171-3 (696) Page 3 of 8 FIIA Nebraska Deed of Trust
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