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2 01008579
<br />BORROW�R COVENANTS that Barrower is lawFully saized of the estate hereby conveyed and
<br />has the right to grant and convey the Prqperty and that the Property is unencumbered, except for
<br />encumbrances of record. Borrower warrants and wilt defead generally the titic to the Properry against all
<br />claiaYS and demunds, subject to any zncumbrancc� otrecord.
<br />THIS SECURTTY INSTRUMEM combines uniform covenants for national use and non-uniforrr►
<br />covcnants with limited variations by jurisdiction to constitute a uniforni security instrument covering real
<br />property.
<br />8orrower and Lender cvvenant and agree as fallows:
<br />UNiFORM COV�NANT5.
<br />1. Pa�yment of Princtpal, InteresC uud Late Chargc. Borrower shall pay whcn due the principal of,
<br />and interest on, the debt evidenced by the Notc and late charges due under the Note.
<br />l. AloniWy I'aymcnt of Taxes, Insurance, and Other Charges. Borrower shall include in eaph
<br />mnnthly payment, togetl�er with the principal and interest as set farth in the Note and any late charges. a sum
<br />for (a) taxes and special assesstnents le�ried or co he le�•ied against the I'roperty, (b) leasehold payments or
<br />ground rents on the Property, and (c) pr�miums for insurance required under Paragraph 4. In any year in
<br />which the Lender must pay a ruortgage insurance premium ta the Secrctary of Elousing and Urban
<br />❑evelopm�nt ("Secreiary"), or in any year in which such premium would have been required if Lender still
<br />held the Security In:�trumeat, each monihly payment shall also include eidicr: (i) a sum For the annual
<br />mor�gagc insurance preniium to be paid by Lender tp the Secreiary. ar (ii) a monthly charge instead of a
<br />morrgage insurance premium if this Security Instrument is held by thc Secretary, in a reasonabie amount to
<br />be deterniined by dis Secretary. Except for the mpnthly charge by the Secretary, these items are called
<br />"Escrow Items" and the sums paid ro Lender are oalled "Escrow Punds."
<br />Lender may, at any time, collect and hold amounts far Escrow Items in an �ggregate amount noi to
<br />exceed the maxinium amount tt�at may be required for Barrower's escrow account under the Real Estate
<br />Settlement Procedures Act of 1974, 12 U.S.C. § 26D1 et sea• and implementing regulations. 24 CFR Part
<br />3500, as I.hey may be amended frrnn time to time ("RESPA"), except that the cushion or reserve permitted by
<br />ItESPA for unanticipated disbursaments or disbursements beforc the Rorrower's payments are ar+ailable in
<br />the account may not be based on amounts due for the mortgage insurance premium.
<br />If the amaunts held by Lender for Escrow Items exceed cha amounts permitted to be held by
<br />RESPA, Lender shall account to Borrower for the excess firnds as required by RESPA. If the amounts of
<br />funds lield by I.ender at any time are not suf�cient to pay the �serow Iteras when due, Lender may notify the
<br />$arcawer and require Borrower to make up the sliortage as permitted by RE5PA.
<br />The �scrow Funds are pledged aK addicianal security for all aums seeured by this Security
<br />Instrumenc, Tf Borrower tenders to Lender tlie full payment of all such sums, Borrower's account shall bc
<br />credited with tlie balance remaining for all installment items (a), (b), and (c) and any martgagc insurance
<br />premiuxu instal lment that Lender has not became obligated to pay to the Secretary, and Lcndar shall promptly
<br />refund any excess funds to I3orro�c Immediately priar to a foreclosure sale of tl�c Properry or �ts
<br />acquisition by Lender, Borrower's acc�unt shall be crediied with any balance remaining for ail installments
<br />far icems (a), (b), and (c).
<br />3. Application of Payn�euts. All payments undcr ParagrAphs l and 2 shall he applied by Lender as
<br />follo�vs:
<br />First, to [he mortgage insurance prentium to be paid by Lender ta thc Secretary or ta the monthly
<br />charge by tha Secretary instcad of the monthly mortgage insurance premium:
<br />Second, to any taxes. special assessments. leasehold payments or ground rents, an:d firc, fload and
<br />other hazard insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to Amortization nf the principal of the Note; end
<br />Fifth, to late charges due under the Note.
<br />4. �ire, Flaad And Other IIazard Insurance. Borro�ver shall insure all unpro�emencs an the
<br />Property, whether now in existence or subsequentl� erected, a�uinsc any hazards, casualties, and
<br />contingencics, including fire, for which T.ender requ'ues insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. Barrower shall Also insure all impro��eraents on the
<br />T'roperty, whether now in existence or subsequently crected. against lass by floods to the extent rec�uired by
<br />the Secretary. All insurance shall be carried with companies approved by Lender. The insurance pohcies and
<br />any renewals shall be held by Lender and shall include loss payable clauses in favor of. and in a form
<br />aceeptable to_ Lender.
<br />In the event of lo�s, Borrower shall give Lender immediate notice by mail. Lender may make proof
<br />of loss if not made prnmptly by Borrower. �ach insurance company concerned is hereby au[horized and
<br />directed to make payc�nent for such loss directly to I.ender, instead nf to Barrower and to Lender jointly. All
<br />or nny part of the insurnnce proceeds may be applied by Lender, at its nption, eithcr (a) to the reductaon of the
<br />indebtedness under the Note and this Security Instrument, t`irst to any delinquenc amnunts npplied in the order
<br />in Paragraph 3. and then to prepuyment of principal. or (b) to the restoratipn or repttir of the damaged
<br />Property. Any application oF thc proceeds ta the principal shall no[ extend or postpone the due date of the
<br />monthly payments which are referred to in Paragraph 2, or Change the anxount of such payments. Any excess
<br />insurance praceeds over an amount required tn pay all autstanding indehtedness under d�e Note and this
<br />Security Instrurnent shall be paid ta the entity legally entitled thereto.
<br />In ihe event of foreclosurc of this Security instrument or other transfer of title to the Property that
<br />extinguishes the indebtedness, all riglit, title and interest of Barrower in and to insurance policies in force
<br />tihall pass to tlie purchaser.
<br />5. Occupancy, Preservation, Nlaintenance and Prvteetion of the Property; Borrnwer's Loan
<br />Ap�licatiati; Leasehalds. Barro�ver shall occupy. establish. and usc thc Property as Barrower's principal
<br />resideiace within sixty days after the execution of this Security Instrument (or within sixty days of a later sale
<br />or transFer of the Property) and shall contiztue to occupy the Property as Borrowar's principal residence for at
<br />least one year after the date of occupancy, unless Lender determines that requirement will cause undue
<br />hardship for Borrower, or unless txtenuating circumstances exist which are beyond Borrower's control.
<br />B�rrower shall ��ntify I.,ender of any extenuating circumstance�. Barrpwer shall not commit «'aste or destroy,
<br />damAge or substantially change the Property or allo«� th� Property to deteriorate, rcasonable wear and tear
<br />excapted. Lender mAy inspect the Property if �l�e Property is vacant or abandoned ar the loan is in default.
<br />Lender may take reasonable action to protect and prescrve such vacAnt or abandoned Property..Barrower
<br />shall also be in default if Borrower, during the loan appl�cation process, gave materially false or �naccurate
<br />inforn�ation or statenients to Lender (nr failed to provide Lender with any matcrial information) in
<br />connectian with the loan evidenced by the Note, including, but not limited to, representations concernwg
<br />Borrawer's occupancy of the Prvperty as a principal residence. lf this Security Instrument is on a leasehold,
<br />FHA Ne6raska Dced afT`us� MFItS
<br />16256.CV (11,0� 42pp691 PagG2 af5
<br />GOTO(00331566)
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