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20�oo�92s
<br />and sell the Ptvperty; and to take any action required of Lender includiug, but not limited to, releasing or caxiceling
<br />this Security Instrument.
<br />BORROWER COV�NAN'1'S that Borrower is lawfully seised of the estate hereby conveyed aud has the tight to
<br />granC and convey the Property and that the Property is unencumbered, except fot encumbrattces oF record. Borrower
<br />wartants attd will defend generally the title to the Property a�ainst all claims and deniands, subject tv atxy
<br />encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with
<br />limited variations by jurisdiction to constitute a uniform security instrument coveri�ag real property,
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follvws:
<br />1. P�yment uf Yrincipal, lnterest and Lale Charge. Borrower shall pay wt�en due the principal of, and
<br />inCerest on, the debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payment of '1'axes, lnsurance, and Other Charges. Borrower shall inctude in each monthly
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxcs and
<br />special assessments levied or to be levied against the Property, (b) leasehold payrnents or graund rents an the
<br />Property, and (c) premiu►ns for insurance reyuired undet paragraph 4. In any yeat in which the Lender must pay a
<br />mortgage insurance premiunn to the Secretary af Housing and Urban Development ("Secretary"), or in aaay year ira
<br />whicl� such premium would have been required if Lender still held the Security Instrument each montlily payment
<br />shall also include either: (i) a sum fot the annual mortgage insurance premium to be paid by Lendet to the Secretary,
<br />or (ii) a monthly charge instead of a mortgage insurance prerniurn if this Security Instrument is held by the Secretary,
<br />in a reasonable amount to be detercnined by the Secretary. Except for the monthly charge by the 5ecretary, tl�ese items
<br />are called "Escrow Items" and the sums paid to Lender are cailed "Escrpw Funds."
<br />Lendet may, at any time, collect aud hold amounts for Escrow Items in an aggtegate amount not to exceed the
<br />maximum amount that may be required for Borrower's escrvw account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. §2GU1 et sea. and imple►nenting regulations, 24 CFR Part 3500, as they inay be amended
<br />from time to time ("RESPA"), except that the cushion or reserve perroitted by R�SPA for unaa�ticipated disburserr�ents
<br />or disbursements b�fore the .Botrvwer's payments are available in the account may not be based on amounts due f'or
<br />the mortgage insurance premiurri,
<br />If the amounts held by L,ender for Escrow lte�ns exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lea�der at atay time
<br />are not sufficient to pay the Escrow Itenns whe�� due, Lender may notify the Bortower and tequire Botrowet to make
<br />up the shortage as petmitted by RESPA.
<br />The Escrow Funds are pledged as additional security fvr ail sums secured by this Security l��strumeut. If
<br />Borrawer tenders to Lender the full payment of all such sums, Borrower's accaunt shall be credited with the balance
<br />remaining for all insta(lment items (a), (b) and (c) and any mortgage iiisurance premium installrnent that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refuna aiay excess funds to Borrow�r.
<br />Immediately prior to a foreclosure sale of th� Property or its acquisition by Lender, Borrowet's account shal( be
<br />ctedited wit1� any balance remaining for all installments for items (a), (b), attd (c).
<br />3. Applicalion af Payments. All payznenks undet paragrapl�s 1 and 2 shall be applied by Lender as follows:
<br />FIRST, to the mottgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the mo►�thly mortgage insurance premium;
<br />S�COND, to any taxes, special assessments, leasehold pay�nents or ground rents, and fire, flood and ather hazard
<br />insurance premiurns, as tequired;
<br />THIRD, to interest due under the Note;
<br />F'OUR'I'll, to amottization of the principal of the Note; and
<br />FIFTH, to late charges due under the Note.
<br />4. Fire, �'lood and Other Ilazard Insurance. Borrower shall insure all improvements on the Ptoperty,
<br />whether now in existence or subsequently erected, against atty laazards, casualties, and contingencies, includittg fire,
<br />for which �,ender requires insurance. This insurance shall be maintained in the amounts and fot the periods that
<br />Lender tequires. Borrower shall also insure a(I improvements on the Property, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All insutatice shall be cartied with
<br />companies approved by Lender. The insurance policies and any renewals sha11 be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender,
<br />In the event of lass, Borrower shall give Lender immcdiate notice by mail. Lender may make proof of lvss if not
<br />mad� ptomptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to Lender, instead of tp Bprrqwer attd to �e��der joir�tly. All or any parC of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the redaction vf the indebted��ess under tl�e Note a�id
<br />this 5ecurity Instrument, first to any delinquent amounts applied in the order in paragrapli 3, aud then to prepayinent
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the praceeds to the
<br />ptincipal shall not extend or postpone the due dat� of the monthly payments which ate refetted to in paragtaph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstandin�;
<br />indebtedness under the Nvte and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrurnent or other tta�isfer of title to tlae Property that extinguishes tlie
<br />itidebtedness, all right, title az�d interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Properly; Borrower's I.,oan Appl[cation;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's pri»cipal residence witl�in sixty
<br />days after t1�e execution of this Security lnstrument (ot within sixty days of a latet sale ot transfet of the Ptoperty)
<br />Borrower Initials: (. �+� �
<br />FHA NE8RA5KA QF�A OF TRUST - MERS
<br />NEDOTZ.FHA 11/01/08 Page 2 of 7
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