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201100136
<br />and sell the �roperty; and to take any actian required of Lender including, but not limited to, releasing or canceling
<br />this Security Tnstrument.
<br />BORRQWER COVENANTS that Borrower is IawFully seised of the astate hereby conveyed and has tl�e xight to
<br />grant and convey the Property and that the Praperty is unencumbered, except for encunn.bxances of record. Borrower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of recard.
<br />THIS SECURITY IIVSTRUMENT cornbinea uniform covenants for national use and non-uniform covenanta with
<br />lizr�ited variations by jurisdiction to constitute a uniform securiry instrument covering real property.
<br />UNIF�]RM COVENANT3. Borrower and Lender covenant �nd agree as follows:
<br />1. Payment of �rincipal, Intereat and Late Charge. Borrower shall pay when due the principai of, and
<br />interest on, the deht evidcnced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Taxes, Ineurance, and Other Charges. Borrowcr shall include in each monthly
<br />payment, Wgether 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 be levied against the Propexty, (p) leasehold payments or ground rents on the
<br />Property, and (c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a
<br />mortgage insurance premium W the Secretary of Housing and Urban Developnn.ent ("Secretary"), or in any yeat in
<br />which such premium would have been required if T.ender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a sum for the annual mortgage insurance premium ta be paid by Lender to the Secretary,
<br />or (ii) a monthly charge instead of a mortgage insurance prexnium if this Security Inshrurnent is held by the Secretary,
<br />in a reasonable amount to be determined by the 5ecretary. Excapt for the monthly charge by the Secretary, these itenns
<br />are called "Escrow Items" and the surns paid ta Lender a�re called "Escrnw Funds."
<br />Lender rnay, at any time, collect and hold amounts for Bscrow Ttems in an aggregate amourxt not to exceed the
<br />maximum amount that may be required for Borrower's escraw account under the Real Estate Settlement Procednres
<br />Act of 1974, 12 U.S.C. §2601 et sea. and implementing regulatians, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that rhe cushion or reservo permitted by RESPA far unanticipated disbursements
<br />or disbursements before the Borrower's payments are availab(e in the account may not be based on at�nounts due for
<br />the mortgage insurance pcernium.
<br />If the amounts held by Lender for Escrow Items excaed the amounts permitted W be held by RESPA, Lender shall
<br />accaunt M Barrower far the eaccess funds as required by RESPA. If the amounts of funds held by I,ender at any time
<br />are pot sufficient to pay the Escrow Ttems when due, I.ender may notify the Borrower and require Borrower to make
<br />up the shortage as permitked by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this 5ecuriry Instrument. If
<br />Borrower tenders to Lender tho full payment of all such sums, Borrower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any rnortgage insurance premium installrnent that Lender has
<br />not beeome nbligated to pay to the Secretazy, and Ltnder shall promptly refund any excess funds to Borrower.
<br />Immediately prior ta a foreclosure sale of tbe Property or its acquisition by Lender, Borrowe�r's account shall be
<br />credited with any balance remaining for all inatallments for items (a), (b), and (c).
<br />3. Applicetlon of Paymenfs. A11 pay�nn,ents under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FI��, to thc mortgage insurance premium to be paid by Lender to thc Secretary or to the monthly oharge by
<br />the 5ecretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, lassthoid paymenis or ground rents, and fire, flood and other hazard
<br />insurance prerniurns, as required;
<br />� to interest due under the Note;
<br />FOURTH• to amortization ofthe principal of thc Note; and
<br />FIFTH, to lata charges due under the Note.
<br />4. Ftre, Flood and Other Hazard Ynffinrance. Borrowcr shall insure all improvements on the Praperry,
<br />whether now in existcnce or subsequently erected, against any hazards, casualties, and contingencies, including fire,
<br />for which Lender requires insurance. This insurance shall be rnaintained in the amounts at�d for the periods that
<br />Lender xequires. Sorrower shall also insure all improvements on thc Property, whether now in existence or
<br />subsequently erected, against loss by floods to the e�ctent required by the Secretary. All insurance shall be carried with
<br />companies approved by Lender. The insurar�ce policies and any renewals shall bc held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable W, Lender.
<br />In the event of loss, Boirrower shall give Lender immediate notice by rnail. Lender may make proof of loss if not
<br />made promptly by Borrower. Each insurance company ooncerned is hereby authnrized and directed to m�ake paynnent
<br />for such loss direcdy to Lender, instead of tq Borrawer and to Lender jointly. All or any part of the insurance
<br />proceeds rnay be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this 5ecurity Instrument, flrst to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the reatoration or repair af the damaged Property. Any application of the proceeds W the
<br />principal shall not extend or postpone thc due date of the monthly payments which are referred W in paragraph 2, or
<br />change the amount of such payments. Any exoess insurance proceeds vver an amount required ta pay ail outstanding
<br />indebt�dness under the Note and �is Security Instruznent ahall be paid to the entity legally cntitled thereto.
<br />In the cvait of foreclosure of this Securiry Instrument or other transfer of title to the Property that �cdnguishes the
<br />indebtedness, all right, tide and interesC of Horrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservatlon, Maintenance and Protection of the Property; Borrower's Loaa Applicatlon;
<br />Leaseholda Borrower shall occupy, establish, and use the Praperty as Borrower's principal residence within sixty
<br />days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property)
<br />FHA NEBRASKA DEID OF TRUS7 - MERS DOCA/�IC � 800-6A8•13B2
<br />N�arz.rlin 71�a��oa Pege z vf 7 www.�r�agrc.con►
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