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20�102�3�
<br />DOC ID #: 00023391169403011
<br />, LTNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when
<br />due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the
<br />Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security
<br />Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the
<br />Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under
<br />the Note and this Security Inshvment be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money
<br />order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution
<br />whose deposits are insured by a federal agency, instrumentality, or entity; ar(d) Electronic Funds Transfer.
<br />Payments are deemed received by Lender when received at the location designated in the Note or at such other location as
<br />may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial
<br />payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial
<br />payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such
<br />payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are
<br />accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds.
<br />Lender may hold such unapplied funds until Borrower makes payments to bring the Loan current. If Borrower does not do so
<br />within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such
<br />funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim
<br />which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note
<br />and this Security Instrument or performing the covenants and agreements secured by this Security Instrument.
<br />2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and
<br />applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the
<br />Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became
<br />due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument,
<br />and then to reduce the principal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay
<br />any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment
<br />is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the
<br />extent that, each payment can be paid in fu1L To the extent that any excess exists after the payment is applied to the full payment
<br />of one or more Periodic Paytnents, such excess may be applied to any late charges due. Voluntary prepayments shail be applied
<br />first to any prepayment charges and then as described in the Note.
<br />Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend
<br />or postpone 1;he due date, or change the 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
<br />Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taazes and assessments and other items
<br />which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground
<br />rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage
<br />Insuzance premiums, if any, or any sums payable by Bonower to Lender in lieu of the payment of Mortgage Insurance premiums
<br />in accordance with the provisions of 5ection 10. These items are called "Escrow Items." At origination or at any time during the
<br />term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by
<br />Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of
<br />amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's
<br />obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any
<br />or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly,
<br />when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if
<br />Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require.
<br />Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and
<br />ageement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is
<br />obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender
<br />may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to
<br />Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance
<br />with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required
<br />under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time
<br />specified under RESPA, and (b) not to exceed the maacimum amount a lender can require under RESPA. Lender shall estimate the
<br />amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
<br />accordance with Applicable Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including
<br />Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds
<br />to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying
<br />the Funds, annually analy�ing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the
<br />Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law
<br />requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds.
<br />Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br />without charge, an annual accounting of the Funds as 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
<br />in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower
<br />as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with
<br />RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA,
<br />Lender shall notify Borrower as required by RESPA, and Borrower shail pay to Lender the amount necessary to make up the
<br />deficiency in accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in fuil of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds
<br />held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property
<br />which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and
<br />NEBRASKA--Single Family--Fannie MaelFreddie Mac UNIFORM INSTRUMENT (MERS) Fortn 3028 1/07
<br />MERS Deed of Trust-NE
<br />2006A-NE (08/08) Page 3 of 9
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