|
2oiuo��s;
<br />Boxxow�x CovExnrrrs that Borrowcr is lawfully seised of the estate hereby conveyed and has the right to grant
<br />and convey the Property and that the Praperty is unencumbered, except for encumbrances of rec:ord. B�rrower warrants
<br />and will defend generally the title tv the Property against all claims �nd dcmands, subject to any encumbrances of record.
<br />Tr�is SECUxrrx INSrRUM�Nr combincs uniform wvenants for natianal use and non-uniform wvenants with limited
<br />variations by jurisdiction to constitutc a uniforrn security instrument covering real property.
<br />UNiroxM CovF,rraiv�rs. Borrower and Lender eovenant and agree as follows:
<br />1. I'ayment of Principal, Interest and Late Char�e. Borrower shall pay when due the principal ot', and interest
<br />on, the debt evidcnced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Taxes, Insurance and Other Charg�s. Barrowcr shall incluc�e in cach monthly
<br />payment, together with the principal and incerest as set forth in the Note and any late charges, a sum for (a) taxes and
<br />special assessments levied or to bc lcvied against the Prnperty, (b) leasehold payments or ground rents on the Property,
<br />and (c) premiums for insurance required under paragraph 4. In any year in which the L.ender must pay a mortgage
<br />insurance prernium in the Secr�.tary of Housing and Urban D�veloprnc.nt ("Secretary"), or in any year in which such
<br />premium would have been required if Lender still held the Security Instrument, each rnonthly payment shall also include
<br />either: (i) a surn for the annual mortgage insurance premium co be paid by T.,ender tc� the Secretary, �r (ii) a monthly
<br />charge instead of a mortgage "rnsurance premium if this Security Instrument is held by the Secretary, in a reasonable
<br />amaunt to be determined by the Secretary. Except for the monthly charge by the Secretary, these items are called
<br />"Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts fnr Escrow Items in an aggregate amnunt not to exceed the
<br />maximum amount that may be required for Borrower's escrow ac:c:ount under the Rcal Estatc Settlement Procedures Aci
<br />of 1974, 12 U.S.C. § 2b�1 et se . and implementing rc;gulations, 24 CFR Part 3500, as they may be amended from time
<br />to time ("RESPA"), except that lhe cushion or res�rve permitted by RESPA for unanticipated disbursements or
<br />disbursements before the Borrower's payments are available in the account may not he based on amounts due for the
<br />mortgage insurance prernium.
<br />If the aznounts held by L.ender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the exc,�ss funds as required by RESPA. Xf the amounts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, 1.ender may notify the Borrower and require Borrower to make up
<br />the shortage as permitted by RESPA.
<br />The Escrow Funds are pled�ed as �dditional security for all sums secured by this Security Tnstrument. If $orrower
<br />tenders to I.ender the full payment of all such sums, �3orrower's aceount shall be credited with the balance retnaining
<br />for all insta]Iment iterns (a), (b), and (c) and any mortgage in.surance premiuzn installment that Lender has not bewme
<br />obligated to pay to the Secretary, and Lender shall promptly refund any excess tunds to Borrower. Irnmediatcly prior to
<br />a foreclosure sale af the Froperty or its acquisition by I.,ender, Borrower's accc�unt shall be credited with any balanc�;
<br />remaining for all inscallments for items (a), (b), and (c).
<br />3. Application of Payments, All payments under paragraphs 1 and 2 shall be applied by L.ender as follows:
<br />First, to thc naortga�e insurance premium to be paid by I.,ender ta the Sccretary or to the monthly charge by the
<br />Secretary instead �f thc monthly mortgage insurance pr�rnium;
<br />Sec;nnd, to any taxes, special assessments, leas�hald payrnents or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />�1. Fire, Flood and Other Hazard Insurance. Bor�ower shall insure all imprnvements on the Property, whether
<br />now in existcnc.c. or subscquently erectc;d, against any hazards, casualties, and contingencies, including fire, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that L,endcr requires.
<br />Borrower shall als� insure all irnprovem�nts on the I'roperty, whether now in existence or subsequently erected, against
<br />loss by tloods to the extent required by the Secretary. All insurance shall be c:arricc� with companies approved by L.ender.
<br />The insurance pol"rcies and any renewaLs shall be held by Lender and shall include loss payable clauses in favor of, and
<br />in a torra acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender unrnediate notice by mail. Lender may make proof of loss if not
<br />made; promptly by Borrower. Each insurance wmpany concerned is hereby authorized and d'uected to make payment
<br />for such loss directly to Lender, instead oC to Borrower and to L.ender jointly. All or any part of the insurance proceeds
<br />may be applied by Lender, at its option, either (a} to Che reduction of the indebtedness undcr the Note and this Security
<br />Tnstrumenc, first to any delinquent amounts applied in thc order in paragraph 3, and then to prepayment of principal, or
<br />(b) to the restoration or repair of che damaged Property. Any application of the proceeds to the prineipal shall not
<br />extend or postpone the due clatc of the monthly payments which are referred to in paragraph 2, or changc the amount
<br />of such payments. Any excess insurance proceeds over an amount rcquired to pay all outstanding indebtedness under
<br />the Note and this Security Instrument shall be paid tn thc entity legally entitled thereto.
<br />Tn the event of fareclosure of this Security Instrument or other transfer of titic to the Property that extinguishes
<br />the indcbtedncss, all right, title and intcrest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Occupancy, Preservation, Maintenance and Protection of the Property; Rorrower's Loan Application;
<br />T.easehalds. B�rrower shail occupy, eskablish, ancl use the Property as Borrower's principal residence within sixty days
<br />after the execution of this Security Jnstrument (or within sixty days of a later sale or transfer of the Prop�;rty) and shalt
<br />continue to occupy the Praperty as Borrower's principal residence: for at least one year after the date of occupancy, unless
<br />Lender determines that requirement wil! cause undue hardship for Borrower, or unless exienuating circumstances exist
<br />which are beyond Borrower's control. Borrower shall notify 1..c:nder of any extenuating circumstances. Borrnwer shlll
<br />not cornznit waste or destroy, dama�e or substantially change the Property or a11ow the Property to d�teriorate, reasonable
<br />wear and tear exc:epted. Lender may inspcct the Pr�perty if the Property is vacant or abandoncd or the loan is in default.
<br />Lender may take reasonable action ta prot�ct and preserve such vacant or aband�ned Property. Borrower shall also be
<br />in deEault if Borrower, during the loan application proa;ss, gave materially false or inaccurate information or statements
<br />to L,ender (or failed to provide Lender with any rnaterial information) in connection with the loan evidenced by the Note,
<br />including, but not limited to, representations concerning Borrower's occupan�y of the Property as a principal residenec;.
<br />If this Security Instrurnent is on a leasehold, Borrower shall c:omply with the provisions of the lease. It Borrower ac:quirc:s
<br />fee title to the Property, the leaschold and fee title shall not be merged unless L,cndcr agrees to the mer�er in writing.
<br />NEBRASKA FHA DEED 4F TRUST 1�02 (Page 2 of 5 Pages)
<br />
|