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2010U9781
<br />and sell the Yroperry; and to take any action required of Lender including, 6ut not limited to, releasing or canceling
<br />this Security Insrrument.
<br />BOKROWER COV�NANTS that Borrower is lawfully seised of the estate here6y conveyed and has the right to
<br />grant and convey the Property and that the Property is unencumbered, except fur encumbrancas of record. sorrower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encum6rances of record.
<br />CHIS S�CURITY INSTRUMF.NT combines uniform covenants for national use and non-uniform covenants with
<br />limited variations by jurisdiction to constitute a uniform securiry instrument covering rea] pruperty.
<br />UNIFORM COVENANTS. 6orrower and Lender covenant and agree as follows:
<br />l. Yayment of Principal, Interest and l.ate Charge. Borrower shall pay when due the principal of, and
<br />interest on, the de6t evidenced by the Note and latc chargcs duc under the Note.
<br />2, Monthly Payment of Taxes, Insurance, and Other Charges. IIorrower sha11 include in each mvnthly
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and
<br />special assessments levied or to he levied against the Properry, (h) leasahold payments or ground rents on the
<br />1'raperty, and (c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a
<br />mortgaga insurance premium to the Secretary of Housing and Urhan Developmenc ("Secretary"), or in any year in
<br />which such premium wnuld have been required if Lender still held the Security Instrument, each monthly payment
<br />shall also inctude either: (i) a sum for che annual mortgage insurance premium to be paid by Lender to the Secretary,
<br />ar (ii) a monthly charge instead oF a mortgage insurance premium if this Security Instrument is held by the Secretary,
<br />in a reasona6le amount to be determined by the Secretary. Gxcept for the monthly charge by the Secretary, these items
<br />are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, co]lect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum am�unt that may be required for Borrower's escrow account undar thc Real Estate Settlement Procedures
<br />Act of 1974, l2 IJ.S.C. §2601 et sea. and implementing regulations, 24 CFR Part 35�0, as they may be amended
<br />from time to time ("RESPA"), except that the cushion or rescrve permitted hy RESPA for unanticipated disbursements
<br />or disbursements before the Borrower's payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />If the amounts held by Lender for �scrow llems exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds aa required by RESPA. If the amounts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Dorrower to make
<br />up the shortage as permitted by RESPA.
<br />The F.scrow Funds are pledged as additional security for all sums secured by this Securiry Instrument. If
<br />Borrowar tenders to Lender the full payment of all such sums, Borrower's account shal] bc credited with tha balancc
<br />remaining for all installmenc items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund any excess f'unds to Borrower.
<br />Immediately prior to a foreclosure sale oF the Properry or its acquisition hy Lender, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application ot Puyments. All payments under paragraphs 1 and 2 shall be applied by [,ender as follows:
<br />FIRST, to the mortgage insurxnce premium co be paiJ by Lender to che Secretary or to the monthly charge by
<br />the Secretary instead oT the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, IeaseholJ payments or ground rents, and fire, flood and other hazard
<br />insurance prcmiums, 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 chargcs duc under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the 1'roperry,
<br />whether now in cxistence or subsequendy erected, against any hazards, casualties, and contingencies, including fire,
<br />for which Lender requires insurance. This insurance shall hc mainzained in the amounts and for the periods that
<br />Lender requires. Borrower shall also insure all improvements on tha Property, whether now in existence or
<br />subsequently crected, against loss by floods to the extent required by the Secretary. All insurunce shall be carried with
<br />companies approved 6y Lender. '1'he insurance policies and any renewals shall 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 loss, Borrower shap give Lender immedia[e notice by mail, Lender may make pruof of loss if nnt
<br />made promptly by Borrower. F.ach insurance company concerned is hereby authorized and directed tu make payment
<br />for such loss directly to Lender, instead of to eorrower and ro Lender joindy. All or any part of' the insurance
<br />proceeds may be applied by L,ender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to tha restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shal] not extend or postpone the duc date of the monthly paymcnts which arc referred to in paragraph 2, or
<br />change che amount of such payments. Any excess insurancc proceeds over an amount rcquired to pay all outstanding
<br />indebtedness undcr thc Note and this Security Instrument shall be paid to the entiry legally entitled thcrcto.
<br />In thc event of' foreclosure of this Security Instrument or othcr transfcr of'tidc to the Property that axtinguishes tha
<br />inde6teciness, al] right, title and interest of Borrower in and to insuranc:e policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Malntenance and Protectlon of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall cupy, establish, and use the Properry as Borrower's principa] residence within sixry
<br />days after the execution of t�Securiry Instrument (ur within sixty days of a later sale or transfer of the Property)
<br />FFiA NEBRA�SIS9.OEEA OF TRUST - MERS DocMag/c pL"'cpmnr� eao•cae-i3as
<br />NFDQTZ.FHA 11/01/OB Page 2 of 7 www.docmagk.com
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