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<br />appurtenances, rents, royalties, mineral, oil, and gas rights and protits, water rights and stock and tixtures naw or hereafter a
<br />part oC the property. All replacements and additions shall also be covered by this Security instrument, All of the foregoing is
<br />referred to in this Security Instrument as the "Property." Borrower undcrstands and agrees that M�RS holds only legal title to
<br />the interests granted by F3orrower in this Security Inatrument; but, if necessary to comply with law or custom, M�RS (as
<br />nominee for Lender and Lender's successors and assigns) has the right: to excrcise any or all of those interests, including, but
<br />not limited to, the right to foreclose and sell the Property; and to take any action required of Lender includin�, but not limited
<br />to, releasing or canceling this Security lnstrument.
<br />BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to
<br />mortgagc, grant and convcy the Property and that the Property is uncncumbered, cxccpt for cncumbranccs of record. Borrower
<br />warrants and will def'end generally the title to the Aroperty against all claims and demands, subject to any encumbrances of
<br />rccord.
<br />1. Payment of Principal, interest and L,ate Charge. Borrower shall pay when due the principal of, and interest on,
<br />thc debt evidcnced by the Note and late charges due under thc Notc.
<br />2. Mnnthly Payments of Taxes, Insuranee and Other Charges. �orrower shall include in each monthly payment,
<br />together with the principal and interest as set forth in the Note and any lat� charges, an installmcnt of any (a) taxes and special
<br />nssessments levied ar to be levied against the Property, (b) leasehold payments or ground rents on the Praperty, and (c)
<br />premiums for insurance required by paragraph 4.
<br />Each monthly installment for items (a) (b), and (c) shall equal one of the annual amounts, as reasonably
<br />esiimated by Lender, plus an amount sufficient to maintain an additional balanee of noc more than one-sixth oF thc: estimated
<br />amounts. The full annt�al amount for each item shall be accumul�ted by Lender within a peri��d ending one month before an
<br />itcm would bec:omc delinquent. Lender shall hold the amounts colleCtCd in trust to pay items (a), (b), and (c) before they
<br />became delinquent.
<br />If �t any time the total of the paymcnts held by Lender for items (a), (b), and (c), together with the future monthly
<br />payments for such items payable ta Lender prior to the due dates of such items, exceeds by more ihan one-sixth the cstimatcd
<br />amount of payments required to pay such itcros whcn due, and if payments on the Nate are current, then I,ender shall either
<br />refund the excess over one-sixth of'the estimated payments or credit the excess over one-sixkh of the estimated payments to
<br />subsequent payments by Borrowcr, at the option of f3orrower. If the total of the payments made by Borrower fpr item (a), (b),
<br />or (c) is insufficient to pay the item whcn due, then Barrawer shall pay to Cender any amount necessary to make up the
<br />dcficicncy on or bcforc the date thc itcm becomes duc.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housin� and Urban Pevelopment or his or her
<br />designce. ln any year in which the Lendcr must pay a mortgage insurancc premium to the Secrctary, cach monthly payment
<br />shal] also include either: (i) an installment of the annual mortgage insurance premium ta 6e paid by Lender to the Secretary, or
<br />(ii) a monthly chargc instead of a mortgage insurancc premium if this Security Instrument is held by the Secretary, Each
<br />monthly installment of the mortga�e insurance premium shall be in an amount sufficient to accumulate thc full annual
<br />mortgage insurance premium with Lcnder onc month prior to the date thc full annual mortgage insurance premiurn is due to lhe
<br />Secretary, or if this Security Tnstrument is held by the Secretary, each monthly charge shall be in an amount equal to one-
<br />twelf'th of one percent of the outstanding principal balance due on the Note.
<br />If Borrower tenders to I,ender the full payment of all sums secured by this Security Instrument, 13orrowcr's account
<br />shall be credited with the balancc remaining for all installments far items (a), (b) and (c) and any mortga�e insurance premium
<br />installment thai Lender has not become obligated ta pay to the Secretary and Lendcr shall promptly refund any exccss funds to
<br />Borrower. Immediately prior to a forcclosure sale of the Property or its acquisition by Lender, Borrower's accnunt shall he
<br />credited with any balance remnining for all inst111ments f'or items (a), (b), and (c).
<br />3. Applieation of Yayments. All payments under paragraphs 1 and 2 shall be applicd by Lender as follows:
<br />First, to the mortgagc insurancc prcmium ro be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, l�asehold paymcnts or ground rents, and fire, tlaod and other hazard
<br />insur�nce premiums, �ts required;
<br />FHA Nebraskx Ueed Of Trust - 07/OS
<br />E� 391.0 Page 2 of 7
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