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2010081�2
<br />ITNIFORM COVENANTS. Barrower and l,ender covenant and agrea as follows:
<br />1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower
<br />shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment
<br />charges and late charg�s due under the Note. Borrower shall also pay funds for Escrow Items pursuant to
<br />Section 3. Payments due under the Note and this Security instrument shall be made in U.S. currency.
<br />However, if any check or other instrument received by Lender as payment under the Note or this Security
<br />Instrurnent is returned to Lender unpaid, Lender may require that any or all subsequent payments due under
<br />the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender:
<br />(a) cash; (b) money order; (c) certified cbeck, bank check, treasurer's check or cashier's check, provided any
<br />such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or
<br />entity; or (d) Electronic Funds Transfer.
<br />Payments are deenned received by Lender when received at the location designated in the Note or at such
<br />other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender
<br />may return any payment or partial payment if the payment ar partial payments are insufficient to bring the
<br />Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current,
<br />without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in
<br />the future, but Lender is not obligated to apply such payments at the tirne such payments are accepted. If each
<br />Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied
<br />funds. Lender rnay hold such unapplied funds until Borrower makes payment to bring the Loan current. If
<br />Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return
<br />them to Borrower. If not applied earlier, such funds will be applied to the outstanding principat balance under
<br />the Note immediately prior to foreclosure. No offset or claim which Borrower might hav� now or in the
<br />future against L,ender shall relieve Borrower from making payments due under the Note and this Security
<br />Instrument or performing the covenants and agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described i❑ this Section 2, all payments
<br />accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the
<br />Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to
<br />each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied �rst to
<br />late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal
<br />balance af the Nate.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
<br />amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge.
<br />If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to
<br />the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the
<br />extent that any excess exists after the payment is applied to the full payment of one or more Periodic
<br />Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to
<br />any prepayment charges and then as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the
<br />Note shall not exter►d or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. �'unds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under
<br />the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a)
<br />taxes and assessments and other items which can attain priority over this Security Instrument as a lien or
<br />encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums
<br />for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any,
<br />or any sums payable by Borrower to Lender in lieu of the payment af Mortgage Insurance premiums in
<br />accordance with the provisions of Section 1 p. These items are called "Escrow Items." At arigination or at
<br />any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and
<br />Assessments, if any, be escrawed by Borrower, and such dues, fees and assessments shall be an Escrow Item.
<br />Borrower shall promptly furnish to Lender all notices of amounts to 6e paid under this Section. Borrower
<br />shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligatian to pay the Funds for
<br />any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all
<br />Escrow Items at any tirne. Any such waiver rnay only be in writing. In the event of such waiver, Borrower
<br />shall pay directly, when and where payable, the amounts due for any �scrow Items fvr which payment of
<br />Funds has been waived by I,ender and, if Lender requires, shall furnish to L.ender receipts evidencing such
<br />payment within such time period as Lender may require. Borrower's obligation to make such payments and to
<br />NEBRASKA- Single Family - FannieMae/FreddieMac UNIFORM IN$TRUMENT
<br />Form 3028 1I01
<br />Laser Forms Inc. (S00) 446-3555
<br />LFI#FNMA3028 4/02 Page4 of 13 If11tI�IS: _
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