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<br />to the Property against all claims and demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for netional use and npn-unifprm covenants with limited variations by
<br />jurisdiction to constitute a uniform security instrument covering real property.
<br />UNIFDRM COVENAN75. 8orrvwer and Lander covenant and agrea es follaws:
<br />9. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal
<br />of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also
<br />pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S.
<br />�urrency. However, if any check or other instrument received by Lender as payment under the Note or this 5ecurity Instrument is returned
<br />to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be mede in ane
<br />or more of the following forms, as selected by Lendsr. (a) cash; (b) mqney order, (c) certified check, bank check, treasurer's check or
<br />cashiar's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentaiity, or
<br />entity; or (d) Electronic Funds Transfer. r
<br />Payments are deemed re�eived by Lender whe� reaeived et the Iocation designatsd in tFra Nata �r at such or.hsr IoCation as• may be
<br />designated by Lender in accordance with the notice provisions in Sectinn 15. Lender may return any payment or partial payment if the
<br />payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to
<br />bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the
<br />future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied
<br />as of its scheduled due date, then Lender need nat pay interest on unapplied funds. Lender may hold such unapplied funds until 8orrower
<br />makes payment to bring the l.oan current. If Borrpwer does not do so within a reasonable period of time, Lender shall either apply such
<br />funds or return them to 8orrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note
<br />immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower
<br />from making payments due under the Note and this 5ecurity Instrument or performing the covenants and agreements secured by this
<br />5ecurity Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by
<br />Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due
<br />under Section 3. 5uch payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts
<br />shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal
<br />balance of the Note.
<br />If l.ender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late
<br />charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding,
<br />Lender may apply any payment received from 8orrower tv the repayment of the Periodic Payments if, and to the sxtent that, each payment
<br />c8n be paid in full. To the extent that any excess exists after the payment is applied t0 th9 full payment of ana vr mpr8 PBriadic Payments,
<br />such excess may be applied to any lete cherges due. Valuntary prepayments shall be applied first to any prepayment charges and then as
<br />described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or
<br />postpone #he due date, or change tha amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid
<br />in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority
<br />over this 5ecurity Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the �roperty, if any; (c)
<br />premiums for any and all insurance required by Lender under 5ection 5; and (d) Mortgage Insurance premiums, if any, or any sums payable
<br />by 8orrawer to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of 5ection 10. l�hese
<br />items are callsd "Escrow Items." At arigination or at any time during the term of the Loan, Lender may require that Community
<br />Association Dues, Fees, and Assessments, if any, ba escrowed by Borrowsr, and such dues, fees and assessments shall be an Escrow
<br />Item. Borrowershall pramp�ly�c�ish ts� �ender-all notices of amounts to he paid under this Section. Borrower shall pay Lender the Funds
<br />for Escraw Items unless Lender waives Borrawer's obligation tv pay the Funds for any ar all Escrow Items. Lender may waive Borrower's
<br />obligation to pay to Lander Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such
<br />waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been
<br />waived by Lender and, if Lender requires, shell furnish to Lender receipts evidencing such payment within such time period as Lender may
<br />require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and
<br />agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to
<br />pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its
<br />rights under Section 9 and pay such amount and Borrower shall then be obligated under 5ection 9 to repay to Lender any such amount.
<br />Lender may revoke the waiver as to any or all �scrow Items at any time by a notice given in accordance with Section 16 and, upon such
<br />revocatibn, Borrower shall pay to Lender all Funds, and in such amounts, that are then raquired under this Section 3.
<br />Lender may, at any tima, collect and hold Funds in en amount (a) sufficient to permit Lender to apply the Funds at the time specified
<br />under RESPA, and (6) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds
<br />due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accnrdance with
<br />Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a faderal agency, instrumentality, or entity (including Lender, if
<br />Lander is an institution whose deposits are so insured) o� in any Federal Home Loan Bank. Lender shali apply the Funds to pay the Escrow
<br />Items no leter than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually
<br />analyzing the escrow account, or verifying the �scrow Items, unless Lender pays Borrower interest on the Funds and `Applicable Law
<br />permits Lender tv make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the
<br />Funds, Lender shall not be required to pay Borrpwer any interest or earnings on the Funds. 6orrower and Lender can agree in writing,
<br />however, that interest shall 6e peid on the Funds. Lender shall give to 8orrower, without charge, an annual accounting of the �unds as
<br />required by RESPA.
<br />If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in
<br />accvrdance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required
<br />6y RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more
<br />than 12 monthly payments. If there is a deficiency of Funds held in escrow, es defined under RESPA, Lender shall notify 9orrower as
<br />required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in
<br />no mbre than 12 monthly payments.
<br />Upon payment in full of all sums secured by this Security instrument, Lender shall prpmptly refund to Borrower any Funds held by
<br />Lender.
<br />4. �fi�rgas; tians: Rcrrower shaif pay all taxes, assessments, charges, fines, and impositiorrs attributable to the Praperty which can
<br />attain priority over this Security Instrument, leasehold payments or grvund rents on the Property, if any, and Community Association Dues,
<br />Fees, and Assessments, if any. To the extent that these items are Escrow Items, 8orrower shall pay them in the manner provided in
<br />5ectian 3.
<br />6orrower shall promptly discharge any lien which has priority over this 5ecurity Instrument unless Borrower: (a) agrees in writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such
<br />agreement; (b) cantests the lien in gaod faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion
<br />operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c)
<br />secures from the halder of the lien an agreement satisfactory ta Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject ta a lien which can attain priority over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one
<br />or more of the actions set forth above in this 5ection 4.
<br />Lender may require Borrower ta pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in
<br />connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements nvw existing or hereaftar erected on the Property insured against Ivss
<br />by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods,
<br />for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods
<br />NEBRASKA-5ingle Femily-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Porm 302$ 9/09
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